Bitcoin Surpasses $86,940... $1 Billion 'Bulk Money' in Spot ETFs and Short Squeeze

▲ Bitcoin (BTC) ©Godasol

Bitcoin (BTC) rose 1.82% in a single day, reaching $86,940.50, climbing to a multi-month high. This surge was fueled by approximately $1 billion in daily inflows into US Bitcoin spot ETFs, generating strong spot demand, coupled with the liquidation of over $340 million in short positions, which amplified the upward movement.

According to cryptocurrency market data aggregator CoinMarketCap on September 23 (local time), Bitcoin traded at $86,940.50, up 1.82% over 24 hours. The primary driver of this rally was the massive capital inflow into US Bitcoin spot ETFs. On the 21st, approximately $999 million in net inflows were recorded in a single day, marking the largest volume since October 2025, with BlackRock's IBIT alone receiving $381 million. This amount absorbed roughly 26 days' worth of newly mined Bitcoin, providing direct buying pressure on the market.

The macroeconomic environment also supported the upward trend. While the total cryptocurrency market capitalization increased by 1.91%, Bitcoin showed a high correlation of 90.6% with the S&P 500 index. A favorable macroeconomic environment, including falling international oil prices and US Treasury yields, stimulated risk asset preferences, leading to a concurrent rise in Bitcoin. Additionally, the liquidation of over $340 million in short positions triggered a short squeeze (buying pressure resulting from the liquidation or covering of short positions), further amplifying the upward trend.

However, short-term overheating signals are also appearing. The 7-day Relative Strength Index (RSI) entered the overbought zone at 79.73, and the Fear & Greed Index recorded 77, indicating a high level of greed. Analysts suggest that since large ETF inflows and short position liquidations have rapidly driven up the price, sustained new spot buying is crucial for further gains. The narrowing Coinbase Premium Gap was also presented as an indicator to check whether institutional buying strength is slowing down.

Technically, $86,181 is a key support level that will determine the short-term direction. This price corresponds to the 50% Fibonacci retracement level. If Bitcoin maintains this level and buying pressure continues, there is a possibility of rising to $87,855, which is the 127.2% Fibonacci extension line. Conversely, if it breaks below $86,181, there is a risk of a correction to $85,562, the 78.6% Fibonacci level.

The market's attention is focused on the Bitcoin spot ETF fund flows during the next US trading day. If the massive net inflow, which amounted to approximately $1 billion, continues, it could support the upward momentum. However, if fund inflows rapidly slow down, the possibility of profit-taking due to the recent sharp rise could increase. For now, the key variables determining Bitcoin's short-term direction are whether the $86,181 support holds, ETF fund flows, and whether leveraged positions are re-expanded.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*