Bitcoin Faces $600M Shorts Liquidation as Price Nears $86K

Bitcoin's recent price volatility has put over $600 million in short positions at risk as the cryptocurrency hovers near $83,800, with bullish sentiment picking up on major exchanges according to volume indicators. Despite this, market sentiment remains subdued, as shown by a low Crypto Fear & Greed Index, and Bitcoin dominance continues to grow, reflecting investor preference for BTC over altcoins. The broader crypto market experienced significant liquidations, with over $240 million in positions closed in the past 24 hours—Bitcoin and Ethereum futures accounted for the majority of these losses, driven mainly by overextended longs exposed by a dip below $85,000. While Bitcoin has seen short-term drops, it remains relatively strong compared to other traditional assets over the past few weeks, outperformed only by gold. Meanwhile, Ethereum faced sustained downward pressure, highlighted by a trader who realized a $2.6 million loss after selling at a significant discount, underscoring bearish momentum as ETH trades below key moving averages. These developments reflect ongoing uncertainty and defensive investor behavior amid broader financial market instability.