Bitcoin Tops $82,000 as Shorts Are Squeezed

Bitcoin rose to $82,095 on Wednesday, extending gains in morning trading after climbing above $82,000. Ether traded near $2,392, Solana was about $89.11, up roughly 4%, and XRP traded at $1.4372.

Total derivatives open interest climbed 2.24% to $138.75 billion, while options open interest surged 378.95% to $44.38 billion. Twenty-four-hour futures volume increased about 15% to $227.47 billion and 24-hour liquidations rose about 70.6% to $535.95 million. CME Bitcoin open interest increased about 1.92% to $9.82 billion.

Market indicators were neutral to slightly positive. The average relative strength index across the market was about 60.44, the Altcoin Season Index read 40 and the Fear & Greed Index stood at 45. Bitcoin’s market share eased to 60.45% and exchange balances declined by 528 BTC to roughly 2.45 million BTC.

Short positions had been building while price rose. The 30-day moving average funding rate for Bitcoin moved close to a low last seen during the November 2022 selloff. Low funding rates can prompt bearish traders to close positions, realize losses or be liquidated.

Major liquidations over the prior 24 hours wiped out about $184.72 million in Bitcoin positions, followed by $72.36 million in Ether, $63.06 million in Zcash, $17.12 million in Solana and $15.59 million in TON.

A report that the United States and Iran were nearing an agreement to end the war coincided with gains in U.S. futures. Dow Jones Industrial Average futures rose about 409 points, or 0.8%, S&P 500 futures gained about 0.7% and Nasdaq 100 futures rose roughly 1.1%.

Commodity prices moved sharply: West Texas Intermediate futures fell about 10% but remained above $91 a barrel, Brent crude traded near $100, and gold futures rose about 2.75% to $4,682.80. The U.S. Dollar Index eased about 0.51% to 97.807.

Open interest growth reflects more capital committed to futures and perpetual contracts, and options activity can represent directional bets and hedging. The rise in open interest, higher liquidations and falling exchange balances occurred alongside the price increase.