Crypto climbs as oil slides and short squeeze fuels gains

The crypto market started the week on a strong note, with total market capitalization rising about 5% to roughly $2.93 trillion, CoinDesk reported. Bitcoin, Ethereum, XRP and Solana advanced in tandem as risk appetite returned, lifting the Fear & Greed Index to 76. A key driver has been weaker oil prices, which improved broader risk sentiment. Brent crude fell 2.8% to around $101 a barrel, easing concerns over energy-supply disruptions and a renewed inflation wave. Reports said U.S. President Trump temporarily halted planned strikes against Yemen's Houthi rebels. The Houthis later said they would not attack U.S. vessels in the Red Sea, reducing fears of an escalating regional conflict and potential oil-supply interruptions. Derivatives flows added fuel to the rally. Over the past 24 hours, 115,490 traders were liquidated, with total liquidations at about $769.8 million. Short liquidations accounted for roughly $647 million, about 85% of the total. The resulting short squeeze created forced buying pressure, pushing prices higher over a short period. Major tokens posted broad gains. Bitcoin rose 5.27% to $84,560 after briefly touching around $85,000, its highest level since January. Ether climbed 5.8% to $2,720, XRP gained 8.58% to $1.49, and Solana added 7.55% to $116.26. As Bitcoin led, investors rotated into higher-volatility altcoins. Bitcoin's dominance edged up to 58.94%, while the CMC Altcoin Season Index jumped to 51, up about 35% from a week earlier, signaling improving interest in altcoins though not yet a full "altcoin season." NEAR surged about 20%, and TAO, SUI, AVAX, HBAR and ADA each rose more than 10%, underscoring a shift in risk appetite toward higher-risk assets. Markets are now looking ahead to U.S. PCE inflation data due on September 26. Continued weakness in oil could lower inflation expectations and support crypto prices, while any renewed inflation pressure could test the durability of the current rebound.