Bitcoin surged $85,000 on Monday, September 21, reaching its highest level since late January as a combination of falling oil prices, a significant short squeeze, and shifting investor sentiment fuelled a broad crypto rally.
The world’s biggest cryptocurrency traded as high as $86,114, up more than 6% in 24 hours. Ethereum rose 5.6% to $2,758, while XRP gained 7.7% and Solana jumped 8.7%. Monero was the standout, raising 13%.
The rally was intensified by a massive short squeeze. Over $300 million in short positions were liquidated in a single hour, with shorts accounting for 96% of forced buying. Over 24 hours, around $710 million across around 135,000 traders were liquidated.
Oil acted as the macro trigger. The Brent crude oil price tumbled for a fourth consecutive session, thanks to diplomatic negotiations to alleviate tensions between the U.S. and Iran, sending 10-year bond yields below the 5% level. Investors are also gearing up for a Trump-Xi summit scheduled for this week.
Cryptocurrency-related stocks rallied sharply. MicroStrategy (MSTR) surged by 9% as it resumed its bitcoin buying spree, while Coinbase climbed by 5.6% and Securitise increased by 8%. NASDAQ-100 Index surged by 2%, crossing 30,000.
Additionally, the BTC/USD pair managed to recapture the U.S. spot ETF average cost basis of $82,225 for the first time since January. According to analysts at BTIG, the bulls may aim to test $90,000 if $75,000 is defended. Nonetheless, the crypto coin is still far below its October 2025 all-time high of $126,000.
2026-09-21 21:07:00
