Bitcoin Breaks $86,000 on $750M Short Squeeze as $2B in New Leverage Floods Market

Bitcoin surged to an eight-month peak, exceeding $86,000 and crossing the $82,000 mark on Monday, which triggered the liquidation of approximately $750 million in bearish crypto derivatives. Jim Ferraioli from Schwab highlighted a 5% increase attributed to the liquidation of short perpetual futures. According to Coinalyze, new leveraged exposure reached $2 billion following this breakout. U.S. spot Bitcoin ETFs experienced outflows totaling $746 million on Tuesday and Wednesday, but saw a reversal with inflows of $160 million on Thursday and $433 million on Friday. The average cost basis for buyers of U.S. spot ETFs stands around $82,225, with crucial levels identified at $87,000 and $90,000. Despite regulatory challenges and a rate hike from the Federal Reserve, altcoins also gained, with Chris Sullivan indicating a potential new bull market.