Bitcoin climbs above $85,000 after smaller holder capitulation

Bitcoin has climbed above $85,000, marking its highest level since January. This rally followed a period of capitulation among smaller holders during a market downturn in July and August.

Onchain analytics from Santiment indicate that approximately 69,494 smaller wallets exited their specific balance ranges prior to the price recovery. This included 62,335 wallets holding between 0.1 and 1 BTC and 7,159 wallets holding between 1 and 10 BTC. Analysts suggest this movement reduced reactive supply, leaving more coins in the hands of larger, less reactive buyers.

The upward momentum was further supported by roughly $648 million in short liquidations and renewed ETF inflows. Market analysts are now looking toward the $88,000 to $92,000 range as the next major resistance level for the cryptocurrency.