Bitcoin surges $2,000 as $247 million in short positions liquidated

  • Bitcoin recovered above $78,000 after leveraged bearish positions were liquidated.
  • More than $247 million in crypto short positions were liquidated on September 17 and 18.
  • The Federal Reserve delivered a 25-basis-point rate hike on September 16 and 17.

Bitcoin rose roughly $2,000 in eight hours, recovering from lows near $76,300 to above $78,000 as forced liquidations swept across leveraged bearish positions. More than $247 million in short positions were liquidated across crypto markets on September 17 and 18, including about $66 million in Bitcoin shorts, compared with roughly $32 million in Bitcoin long liquidations. The move followed a 25-basis-point Federal Reserve interest rate hike delivered on September 16 and 17, which had briefly pushed Bitcoin below $76,000 as risk assets sold off. Bitcoin traded between $77,400 and $78,300 in early trading on September 18, gaining between 1.3% and 2.3% over 24 hours. The recovery was centered on the psychologically important $78,000 level, but liquidation-driven gains are different from a rally powered by fresh demand. Exchange outflows into cold storage would provide a stronger indication of accumulation. A sustained move above $78,000 could improve sentiment across altcoins, while a retreat toward the lower end of Bitcoin's recent $76,000-to-$82,000 range could weigh on the broader crypto market.

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