Bitcoin surged above $85,000 on Monday, hitting its highest level in around eight months as a sharp rally wiped out more than $260 million in short positions within an hour.

CoinGlass data showed that $262.3 million worth of short positions were liquidated during the hour, while total crypto market liquidations stood at around $271.8 million.

Bitcoin climbed as high as $85,229 earlier in the day, marking its strongest level since late January.

The cryptocurrency has gained more than 7 percent over the past five days and almost 35 percent over the past three months.

The rally comes as investors assess whether Bitcoin’s prolonged downturn may finally be ending. However, the cryptocurrency remains well below its record high of more than $126,000 reached in October 2025.

Matt Hougan, chief investment officer at Bitwise, told CNBC that he believes the crypto winter has ended and described the current market phase as “crypto spring.”

Bitcoin’s latest rally also comes after its first weekly close above the 50-week moving average in 45 weeks, according to CoinGlass data.