Bitcoin’s $10k Rally Fueled by Forced Short Covering and Fresh ETF Money

Bitcoin climbed $10,000 in three days, touching $87,000 on Monday evening — its highest level since January. By 17:00 Moscow time the price had eased back to around $86,000.

The move was driven mainly by a short squeeze. On 21 September exchanges liquidated $1.1 billion worth of positions, with $925 million coming from bearish bets. Analysts say the wave of forced closures cleared excess leverage from the market.

Bitcoin ETFs added further momentum, pulling in nearly $1 billion on Monday alone. The Fear & Greed index jumped to 78 on 22 September, entering “extreme greed” territory for the first time since July 2025.

Traders warn that once the squeeze ends, fresh buying will be needed to keep the advance going. The broader macro backdrop remains unfavourable, with high oil prices stoking US inflation and the Fed keeping its hawkish stance.

Based on information from https://cryptonews.net