Bitcoin Climbs Above $81,000 After 5% Surge

Bitcoin price surged above $81,000 on Sept. 3 as a broader risk-asset rally forced heavily positioned short traders out of the market.

BTC climbed from an overnight region near $77,000 to an intraday high around $81,300–$81,400, representing a gain of roughly 5% during the session. The move marked Bitcoin’s strongest sustained push above $80,000 since its late-August rally.

The rally coincided with falling Treasury yields and softer Federal Reserve rate-hike expectations after Governor Christopher Waller signaled support for keeping rates unchanged if inflation continues easing. CryptoQuant, however, cautioned that short covering rather than fresh spot demand drove much of the latest move.

Bitcoin Surge Leaves Short Traders with Liquidation

The recent rise in Bitcoin’s value has caught several short traders by surprise, with millions worth of positions now liquidated.

According to Coinglass, $199 million in short Bitcoin positions were liquidated in the past 24 hours, compared to just $14.3 million in long positions.

Unsurprisingly, Bitcoin’s rise also lifted the rest of the market, further crushing short traders.  Ethereum also increased 5% to cross $2,500 while XRP and Solana gained 9% and 6% respectively.

The biggest winner appeared to be Zcash ZEC which soared by 20% to reach $973. This led to the liquidation of $20 million in short positions on the token.

Overall, $535 million was liquidated in the last 24 hours across over  121,000 traders.  Short positions liquidated totaled $442 million, with the largest loss of $5.26 million on a BTCUSD position on Binance.

CryptoQuant Analysts Say $83,000 Confirms Bull Market

Meanwhile, Bitcoin’s strong positive performance and its stability around $77,000 before its most recent surge have not fully convinced analysts that the bull market is back.

CryptoQuant analysts noted that almost every metric for Bitcoin is now bullish, except that buyers have yet to return. According to the analysts, Bull Score is now at 70 while the price is up 24%.

However, they noted that the rally has been driven mostly by short liquidation rather than by new buyer demand. Onchain data show that spot demand, which briefly expanded when the rally started, is now in contraction.

Still, the analysts believe the real price point to watch is $83,000, which will confirm the bull market. They noted that $83,000 is the 365-day moving average, and this has historically defined Bitcoin bull markets.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets can experience sharp price movements.