The price of Bitcoin rose to $85,194 on Monday morning, making it up 5.4% over the past day, and surpassing the $82,284 level reached on September 4.
Over the past 24 hours, nearly $746 million in cryptocurrency positions were wiped out, including $647.9 million resulting from short selling.
Tension increased over the past few hours, as $159.9 million was wiped from the market between 8:30 a.m. and 9:30 a.m. GMT. About 95% of this amount came from investors who took positions betting on falling prices.
Bitcoin alone lost $277.5 million, and Ethereum lost $122.8 million in short-selling, according to Coinglass data.
Even at this stage, traders continue to buy more rather than exiting the market. The total open interest in digital currencies rose by 7.59% to reach $156 billion. At the same time, total trading volume over the past 24 hours increased by 39% to $224 billion.
This is important because even after closing out losing bearish bets, new positions are still being opened. Traders essentially swap out the leverage that gets liquidated rather than moving to margin.
The futures market is seeing the same shift in sentiment. The ratio of long positions to short positions edged closer to 53% in favor of the upside— the first time in weeks that buyers have maintained this advantage.
Bitcoin futures trading positions also saw a notable increase. Total open interest surpassed 700,000 bitcoins for the first time in several weeks.
Meanwhile, the oil price fell again on Monday for the fourth straight session after Donald Trump pointed out that talks with Iran are still possible.
The November Brent crude delivery price fell 2.6% to $101.17 per barrel by publication time, while the October West Texas Intermediate delivery price fell 2.5% to $97.78.
Donald Trump said on Fox News that he is likely to be ready to sit down with Iranian President Masoud Pezeshkian during this week’s meeting of the United Nations General Assembly.
So far, shipments of crude oil from the Middle East have continued with no major disruption, even after Saudi Arabia shut down its East-West pipeline following the attacks.
In the meantime, Dow Jones Industrial Average futures rose by 450 points, or 0.9%. S&P 500 futures added 0.7%, while Nasdaq 100 futures rose by 1%.
At the same time, the Dow fell 1.7% over the past week, recording its worst weekly performance since March. In contrast, the S&P 500 fell slightly by 0.1%, while the Nasdaq rose 0.7%.
Bond yields fell alongside lower crude oil prices. The 10-year Treasury yield dropped by more than 3 basis points to 4.957%, while the 30-year bond yield fell by a similar amount to 5.294%.
Investors are still grappling with persistent inflation and high borrowing costs after the Federal Reserve raised interest rates last week for the first time in three years.