Bitcoin Breaks Above $80,000 as Short Liquidations Top $480 Million

Bitcoin surged above $80,000 on Friday, September 18, extending a sharp recovery from earlier weekly losses. The cryptocurrency reached about $80,600, gaining more than 5% from Thursday’s close. At the same time, leveraged crypto positions faced a major liquidation wave, with more than $480 million in short positions liquidated within an hour, according to market data.

The rally surprised traders because Bitcoin had recently faced several potential headwinds. The U.S. Senate failed to advance major crypto legislation earlier this week, while the Federal Reserve raised interest rates by 25 basis points. The Bank of Japan also raised rates. However, Bitcoin held above $76,000 and then accelerated higher. Recent U.S. regulatory action on tokenized stocks and renewed demand for spot Bitcoin ETFs also provided support. Bitcoin ETFs recorded about $160 million in net inflows Thursday.

The rapid move higher forced bearish traders to close positions automatically, creating additional buying pressure. Crypto-linked stocks also rallied as Bitcoin crossed the $80,000 threshold.