Crypto markets advanced on Friday, with total market capitalization rising to $3.042 trillion as Bitcoin reclaimed the $85,000 level, and pushed toward $86,000. Easing US Treasury yields and a sharp short squeeze improved near-term risk sentiment across the market, while major cryptocurrencies traded higher.
Total crypto trading volume over the past 24 hours stood at around $107 billion. Bitcoin accounted for 56.8% of the market, compared with 10.9% for Ethereum, according to CoinGecko data.
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Bitcoin was trading at $85,969.40, up around 2% over the past 24 hours, with trading volume of $38.69 billion. The cryptocurrency traded between $83,181.61 and $86,794.25 during the period. Its weekly trading range stood at $82,581.43 to $86,794.25.
At current levels, Bitcoin remained about 31% below its all-time high of $126,080, with a total market capitalization of approximately $1.727 trillion.
Short squeeze drives Bitcoin higher
Bitcoin's advance above $85,000 was accompanied by a sharp move across derivatives markets, with short sellers facing significant liquidations as the cryptocurrency pushed higher.
Riya Sehgal, research analyst at Delta Exchange, said Bitcoin had regained momentum as easing Treasury yields and an aggressive short squeeze improved near-term risk sentiment.
