Bitcoin surged past $91,000 on January 3, 2026, driven by the liquidation of $60 million worth of short positions in one hour. The rally triggered a short squeeze, boosting broader crypto markets. Analysts see potential for further gains toward $95,000, though volatility and macroeconomic risks remain high.
On Saturday, January 3, 2026, Bitcoin surged past the $91,000 mark, setting a new milestone in the cryptocurrency market. The rally was fueled by a dramatic wave of short liquidations worth over $60 million within just one hour, underscoring the volatility and momentum driving digital assets.
Key highlights of the development include:
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Bitcoin breached $91,000, marking one of its strongest upward moves in recent months.
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In a single hour, traders saw $60 million worth of short positions liquidated, reflecting aggressive bullish sentiment.
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Analysts note that the liquidation cascade triggered a short squeeze, amplifying Bitcoin’s upward trajectory.
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The surge comes amid growing institutional interest, with hedge funds and asset managers increasing exposure to crypto as a hedge against inflation and global uncertainty.
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Broader crypto markets also rallied, with Ethereum and Solana posting gains, reinforcing optimism across digital assets.
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Market experts suggest that Bitcoin’s breakout above $91,000 could pave the way for testing psychological resistance levels near $95,000, while volatility remains elevated.
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Traders are closely watching macroeconomic signals, including U.S. Federal Reserve policy updates, which continue to influence risk appetite in crypto markets.
This sharp rally highlights the dual nature of Bitcoin’s appeal—as both a speculative asset prone to rapid swings and a long-term store of value attracting institutional inflows. The liquidation-driven surge demonstrates how leveraged positions can accelerate market moves, creating opportunities and risks for traders.
With Bitcoin reclaiming momentum after weeks of consolidation, the crypto market is once again in the spotlight, drawing attention from retail investors, institutions, and regulators alike.
Sources: Reuters, CoinDesk, Economic Times Crypto, Bloomberg