Bitcoin Reaches $87,395 as Leverage and U.S. Demand Raise Risks

Bitcoin climbed to $87,395 on September 21, its highest price since January 29, as a sharp rally lifted investor optimism. It was trading at $85,326 when BeInCrypto reported the move on September 22.

A rush to close bearish bets helped drive the climb. CoinGlass data cited by CoinDesk showed $746.6 million in crypto positions liquidated over 24 hours, including $647.9 million in short bets.

Trading activity surged with the move: total crypto volume rose 39% to about $224 billion, according to CoinDesk. Bitcoin had also closed the week above its 50-week moving average, a level some traders watch for signs that a market downturn has bottomed.

Investor sentiment turned markedly bullish. Alternative.me’s Fear and Greed Index reached 78, its “Extreme Greed” zone, up from 70 the previous day.

Company buying offered another source of support. Strategy disclosed on September 21 that it bought 950 bitcoin, bringing its holdings to 846,000; Strive reported buying 1,355 bitcoin between September 14 and 18.

But the surge in trading came with a warning: open interest across crypto derivatives rose 7.59% to roughly $156 billion, CoinDesk reported. Open interest measures outstanding futures positions, and the increase suggests traders added new bets even as short positions were forced out.

U.S. spot demand remained less convincing. The Coinbase Premium Index, which compares bitcoin prices on Coinbase with broader market prices, was still negative at -0.028, according to BeInCrypto’s report citing CryptoQuant.

The next test is whether bitcoin can hold its gains as forced short covering fades. A sustained positive Coinbase premium would offer stronger evidence of U.S. buying, while rising leverage leaves the market more exposed to sharp moves in either direction.