Bitcoin surged beyond $28,000 for the first time since August 17th. According to CoinGecko, Bitcoin (BTC) gained $800 about 6:30 pm Eastern Time. The cryptocurrency’s transaction price is $28,271, up 4.4% from yesterday.

Cryptocurrency Market Gains $37 Billion in 24 Hours

The unanticipated positive momentum surprised investors and caused large futures market liquidations. CoinGlass said that the price hike caused $47.4 million in assets to be sold. About 90% of liquidated holdings were short orders. Short squeezes may have caused the unexpected market spike.

A short squeeze occurs when the value of an asset rises rapidly, forcing short sellers (speculators who borrowed money to speculate against the market) to buy it at higher prices to offset their holdings.

Brief liquidations coincided with Bitcoin’s value rise, supporting the idea that a short squeeze drove the market. Ethereum (ETH) first crossed $1,700 in five weeks. Thus, $28 million in futures orders were liquidated. As per analytics platform Santiment, Bitcoin is now expected to touch $30k once again.

The collective market capitalization of cryptocurrencies rose 3.3% in 24 hours, adding $37 billion to $1.16 trillion. CoinGlass reports that the current cryptocurrency market boom liquidated $114.9 million. Over 85% of this is short positions.

After the big cryptocurrencies, Solana (SOL) futures liquidated third most. The liquidation totaled $5.92 million. SOL also saw the most overnight rise of 13.5% among the top 100 cryptocurrency tokens by market value.

October Traditionally Bullish for Bitcoin

The cryptocurrency market also saw notable performances from Thorchain (RUNE), Bitcoin SV (BSV), and Render (RNDR) tokens. The cryptocurrency market’s rise may be due to the short squeeze and the U.S. government’s 45-day financing extension to avoid a shutdown.

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On October 2, U.S. stock market futures began trading optimistically. The S&P 500 rose 17.5 points to 4,312.4. The technology-focused Nasdaq index started trading with a 0.7% positive gap, surpassing 15,000. The upcoming VanEck Ethereum Exchange-Traded Fund (ETF) boosted bullishness in both cryptocurrency and traditional markets.

Bitcoin has seen significant increases in value during October for the past decade, except for bearish market conditions in 2014 and 2018. Investor optimism after the $28,000 surge suggests a market value of $30,000. Significant Bitcoin acquisitions by prominent wallets in recent weeks support this likelihood.