Bitcoin Clears $85,000 After Smaller Wallet Counts Shrink

Bitcoin rose above $85,000 for the first time since January after on-chain data showed 69,494 fewer addresses in two smaller-holder balance groups during July and August. The rally also drew force from a wave of bearish crypto bets being closed.

Santiment reported that addresses holding 0.1 to 1 bitcoin fell by 62,335 during the downturn. Wallets holding 1 to 10 bitcoin dropped by another 7,159.

Those figures do not confirm that 69,494 people sold. A wallet can change balance through transfers or consolidation, and one person may control multiple addresses. The data tracks addresses leaving balance ranges, not verified investors.

Bitcoin’s price climbed through $80,000 and then topped $85,000. It traded near $86,559 on Tuesday, September 22, according to Decrypt, as the broader market showed stronger appetite for risk.

Forced buying helped accelerate the move. CoinGlass data cited by Decrypt showed about $648 million in crypto short positions liquidated over 24 hours. When prices rise, exchanges can close leveraged bets against the market, adding buy orders that push prices higher.

Demand was not limited to derivatives. U.S. spot bitcoin exchange-traded funds drew more than $430 million in net inflows on September 18, according to Farside Investors, following withdrawals earlier in the week.

The rally has also lifted sentiment. The Crypto Fear & Greed Index reached 79, a reading in “Greed” territory, as Bitcoin gained alongside risk assets. That optimism may support buying, but it can also leave the market exposed if prices turn lower.

The next test is whether spot demand can sustain the advance after short liquidations fade. Wallet counts alone cannot show who holds the coins now, while renewed leveraged trading can magnify either direction of the next move.