The total cryptocurrency market capitalization grew by $40 billion on Oct. 2 during a sudden price rally led by the industry's largest digital asset. Bitcoin broke back above $86,000, a move that triggered $120 million in short liquidations within a 60 minute window. The surge marks a recovery for the token after it spent several days testing critical support levels.

Glassnode analysts identified $84,000 as a key line in the sand to watch, noting that maintaining this level keeps the path open toward resistance at $96.7K. This volatility follows a rally past $87,000 in late September and a recovery to $85,000 on Oct. 1 that occurred as the 10 year US bond yield dropped to 5.21%.