Bitcoin Surges Past $86,000 as Short Sellers Lose $930 Million and ETF Investors Return to Profit

Bitcoin climbed above $86,000 on Monday, gaining roughly 6% in 24 hours to reach its highest level since late January, in a broad risk-on rally that also lifted stocks and bonds. The move was fueled by optimism ahead of an expected summit between President Trump and Chinese President Xi Jinping later in the week, alongside falling oil prices with Brent crude sliding for a fourth consecutive session. Rival digital assets joined the advance, with Ether spiking to nearly $2,750, and XRP, Solana, and Monero also posting gains, while crypto-linked equities moved higher.

The surge triggered a wave of forced liquidations, wiping out $930.04 million in leveraged crypto bets over 24 hours, according to CoinGlass. The bulk of those were short positions, with Bitcoin shorts alone accounting for $454.95 million of the total, as traders betting against the cryptocurrency were caught offside by the rapid move.

The rally also brought relief to US spot Bitcoin ETF investors, who had been underwater after an $86 billion wipeout. Bloomberg Intelligence ETF analyst James Seyffart said the climb to $86,000 pushed the average US Bitcoin ETF holder back into profit. Notably, the rally came despite the Senate's failure to advance the CLARITY Act, a crypto market-structure bill that fell well short of the 60 votes needed for cloture in a 49-to-50 procedural vote, effectively ending its prospects for 2026.