Bitcoin nears $85,000 as oil slumps

Key Points:

• Bitcoin surged to $84,700 on Monday, nearing $85,000 after opening the European session near $82,000, driven largely by a short squeeze that forced out traders betting against the rise.
• Over $300 million of crypto liquidations in the past hour were short positions, with Bitcoin accounting for $226 million and Ether nearly $59 million; total liquidations over 24 hours exceeded $710 million across 135,000 traders.
• The short squeeze intensified throughout the day, with shorts comprising 96% of liquidations in the past hour, pushing Bitcoin's price up nearly 2% over 24 hours and continuing a climb started late last week.
• Other cryptocurrencies saw gains as well, with Monero up 13%, DOGE up 5%, and XRP rising above $1.45; broader risk assets including S&P 500 futures and Nasdaq 100 contracts also increased, while oil prices fell for a fourth consecutive session amid diplomatic efforts to ease Middle East tensions.
• The decline in oil prices and easing geopolitical risks could soften inflation concerns, impacting Federal Reserve policy expectations ahead of a potential Trump-Xi summit and possible U.S.-Iran talks at the U.N. General Assembly.