Bitcoin Hits Eight-Month High of $87,000 as Short Squeeze Wipes Out Over $900 Million in Positions

Bitcoin surged to $87,000 on September 21, reaching its highest price level since January 2026 and completing a roughly eight-month return to that part of the range. The move was accelerated by a violent short squeeze, with $108.8 million in short positions liquidated in a single hour after Bitcoin crossed $87,000, and approximately $918 million in shorts wiped out over the preceding 24 hours. Total liquidations across the broader crypto market over that 24-hour window approached $1 billion.

The session high of $85,174.35 had already marked a significant milestone before the push higher, as it was the first time Bitcoin had reclaimed $85,000 since January. With momentum now firmly above that level, traders are eyeing $90,000 as the next psychological target. Open interest climbed alongside the price move, a sign that new money was chasing the rally rather than stepping back.

Bitcoin ETF holders returned to profitability for the first time since January as the price barreled through those levels, a development that could reinforce buying pressure from that cohort. The speed and scale of the short liquidations underscore the elevated volatility in crypto markets and are likely to draw attention from both traders recalibrating their positioning and regulators watching market dynamics.