Crypto Market Recovery: $450M Shorts Liquidated, Bitcoin Hits 9-Month High
The crypto market is witnessing a sudden recovery today, with Bitcoin rebounding 4% in just two hours to hit a 9-month high of $85,299. This follows the liquidation of nearly $270 million in short positions across BTC, ETH, SOL, XRP, DOGE, ZEC, HYPE, and other top altcoins in just an hour.
The global crypto market cap surged more than 2.25% to $2.87 trillion in the last 24 hours. The Crypto Market Fear & Greed Index has also improved to 70 (greed) from a neutral sentiment a week ago.
Crypto Market Recovery amid Massive Bitcoin, ETH, XRP Liquidations
The crypto market saw another short liquidation-driven recovery. According to CoinGlass data, the broader market saw nearly $450 million in liquidations across BTC, Ethereum (ETH), XRP, Solana (SOL), Dogecoin (DOGE), Hyperliquid (HYPE) and SUI in the past 4 hours.
In the last 24 hours, $750 million in total crypto assets were liquidated. Almost $650 million were short liquidations, triggering bullish sentiment and recovery in the broader crypto market.
Bitcoin alone saw almost $300 million liquidated in the last 4 hours. On the other hand, ETH recorded $72 million in short liquidations, significantly lower than BTC.
BTC price has surged nearly 6% in the past 24 hours to hit a 9-month high of $85,299 today. The price is currently trading at $84,537, with a 58% increase in trading volume over the last 24 hours.
Why Are Bitcoin and Altcoins Rising Suddenly Today?
As already priced-in Fed rate hike sentiment faded, hopes of an end to the US-Iran war triggered inflows into spot Bitcoin and Ethereum ETFs. Oil prices also extended their fall for the fourth straight day. Crude oil prices dropped almost 3% to $97 on Monday.
This drove BTC to close above its 50-week moving average (WMA) for the first higher high since November 2025. On-chain platform Santiment noted that this signals a bear market bottom, with rising social volume, large transactions, and derivatives open interest.
$BTC closed the week above the weekly 50 MA for the first time since the bear market began.
And now it’s working on a higher high.
A close at these levels and bear market argument is dead.
Some would say this move has already killed it.
$82,814 is broken. pic.twitter.com/f4XiymJZNZ
— The Wolf Of All Streets (@scottmelker) September 21, 2026
Galaxy Research’s Alex Thorn also flagged a bear market bottom. He claimed the 50-WMA has historically been a strong confirmation that a bear market bottom is in. BTC price rally to drive a massive recovery in the crypto market.
In addition, Bitcoin’s hashrate is rising again after ending a recent downtrend, indicating renewed miner activity. As CoinGape reported earlier, miner MARA Holdings acquired BTC for the first time in months.
Crypto Market Recovery Sentiment Sustained
The crypto market recovery began last week itself when the crypto market saw $300 million in liquidations over four hours. BTC surpassed $81,000 as US regulators SEC and CFTC advanced crypto regulatory developments.
The SEC issued its innovation exemption to grant a five-year exemption to facilitate the trading of tokenized stocks in a major move for crypto. Meanwhile, the CFTC sent crypto rules to White House for regulatory clarity as the CLARITY Act stalled in the Senate.
Veteran trader Peter Brandt also predicted a crypto market recovery and massive rally in the coming years. He also posted his BTC prediction for the first time in more than a month.
“A bear trap immediately followed by a spring board. This is not something to be taken casually. This can be powerful,” he said.
The crypto market recovery has sparked “Uptober” buzz. PlanB says this could be the last time BTC is under $100K. On-chain data remained bullish for weeks ahead. Notably, CryptoQuant’s Bull-Bear Market Cycle Indicator, used by long-term whales, showed that the broader cycle signal is bullish.
Also Check: Best Crypto Tools for Research and Analysis
