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Bitcoin Gains Momentum as Derivatives Liquidations and ETF Inflows Drive Market Activity

Bitcoin sentiment reached multi-month highs following a surge toward $87,395, supported by substantial short liquidations and record ETF demand.

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Bitcoin advanced to an intraday high of $87,395 on September 21, marking its strongest price level since late January. According to analytics firm Santiment, social metrics measuring bullish market sentiment and fear of missing out rose to their highest recorded levels since December 2024 as trading activity accelerated.

The rally was accompanied by widespread liquidations across derivatives markets, totaling $370 million in a 24-hour period, with short positions representing $297.20 million of the total according to CoinGlass. This short squeeze coincided with a 4% increase in open interest, which reached $61.56 billion, while 24-hour spot and derivatives trading volume expanded by 54% to approximately $52 billion.

Institutional demand also contributed to market momentum, with United States spot Bitcoin exchange-traded funds recording a net daily inflow of $998.95 million on Monday. Data from SoSoValue indicates that this figure represented the largest single-day inflow for the funds in 2026, helping lift Bitcoin's six-month gain past 25%.

How this piece reads Buy tone +6
Site call on Bitcoin Sell score -25.6

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