Key Takeaways
Bitcoin reclaimed $87,000 on Sept. 22 before easing to $86,400 with a $1.74 trillion market cap.Coinglass data show short liquidations fell to $48 million, while long losses rose to $14 million.Record single-day spot bitcoin ETF inflows and macro tailwinds signal a strong year-end outlook.
Short Liquidations Cool off as Long Losses Rise
For the second time in less than 48 hours, bitcoin (BTC) price crossed $87,000 as the cryptocurrency established strong support above $85,000. According to the daily chart, shortly after dipping to an intraday low of $85,163 early Sept. 22, BTC quickly reclaimed $86,000 before climbing to a midnight peak of $87,251 just after mid-night.
Just as it did Monday after hitting $87,000 for the first time since late January, BTC retreated to trade around $86,400 at press time. The sharp reversal capped daily gains at just over 1% and kept its market cap nearly static at $1.74 trillion.
For a third straight day, bitcoin’s price action squeezed short sellers harder than long traders. However, Coinglass data shows total short liquidations narrowed to $48 million, down from $171 million 12 hours earlier and more than $454 million on Monday. Meanwhile, long liquidations rose to nearly $14 million, up sharply from $6 million on Monday.
Despite recent sideways trading, bitcoin’s price remains up 35% from its pre-Aug. 19 levels. While the U.S. Treasury’s bond buyback announcement triggered the initial rally, the asset’s sustained resilience points to a broader shift in market sentiment. This outlook is reinforced by the Crypto Fear and Greed Index, which has held mostly above 60 since mid-August.
Furthermore, a surge in fear of missing out (FOMO) to levels last seen in December 2024 adds to mounting evidence that digital assets have entered a fresh bull market. Technical indicators reinforce that momentum, signaling that the crypto winter is officially over and bitcoin remains well-positioned to finish the year with net gains.
Regulatory and Legislative Momentum Buoys Market
Tony Dicarlo, director of institutional propositions at Rootstock Labs, meanwhile, highlighted the key developments on the legislative and macro front that have helped sustain bitcoin’s uptrend in recent weeks.
“Technically, Bitcoin is back above its 50- and 200-week moving averages, up ~29% in 35 days. Legislatively, the SEC stepped up support of digital assets where Congress hasn’t, with the Innovation Exemption filling the CLARITY gap within 24 hours, driving sharp rallies in tokenization-related digital assets and improving broader confidence,” DiCarlo told Bitcoin.com News.
Dicarlo further cited legislative momentum, noting that the American Reserve Modernization Act clearing committee this week has reignited talks of a Strategic Bitcoin Reserve. On the macro front, Japan’s rate hike combined with a weaker yen indicates a dovish Bank of Japan (BOJ) path, maintaining the carry trade and preserving the loose liquidity conditions essential for bitcoin’s uptrend.
While he remains cautious about declaring the crypto winter over, Dicarlo argues that with the bad news now largely priced in, a confluence of good news is helping bitcoin build higher.
“With October and November historically Bitcoin’s stronger months, and macro tailwinds now aligning, we could be heading into some strong momentum through year-end. The last piece of the puzzle we were watching for just confirmed this morning [Tuesday, Sept. 22], with U.S. spot Bitcoin ETFs pulling in $999 million in net inflows yesterday, one of the largest single-day inflows in the last 11 months,” Dicarlo said.
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