Bitcoin (BTC) Breaks Through $85K Barrier in Strongest Rally Since January

Key Highlights

• BTC surged past the $85,000 threshold for the first time since late January, touching approximately $85,248.
• The cryptocurrency has successfully recovered its 50-week EMA positioned around $77,769 following last week’s close at $81,120.
• Spot Bitcoin ETFs in the United States saw $435 million in net capital inflows on Friday, representing the highest single-day figure since early September.
• Declining crude oil prices and softening Treasury yields created favorable conditions for risk-oriented assets, despite ongoing market expectations of additional Federal Reserve policy tightening.
• Strategy acquired an additional 950 BTC valued at $75.7 million, bringing its aggregate Bitcoin position to 846,000 BTC.

Bitcoin (BTC) powered through the $85,000 level on Monday, marking its strongest price performance in approximately eight months. The leading cryptocurrency reached an intraday peak of $85,248 after finishing the prior week at $81,120.

Bitcoin (BTC) Price

This advance represents Bitcoin’s initial breach above the $85,000 threshold since the final days of January. BTC subsequently traded near $85,139, representing approximately 5.7% gains during the session.

The upward movement came after a bounce from levels below $76,000 that followed the Federal Reserve’s recent interest rate hike last week. Buying momentum intensified throughout the weekend, propelling BTC beyond its earlier May peak around $82,950.

Forced liquidations of short positions gained pace as prices climbed higher. Total liquidations across cryptocurrency markets exceeded $600 million during a 24-hour period.

Strong ETF demand and energy market shifts bolster Bitcoin

Bitcoin has successfully regained its 50-week exponential moving average positioned around $77,769. The daily relative strength index also approached the 70 threshold as bullish momentum gained traction.

Institutional demand through exchange-traded funds strengthened in tandem with the price rally. U.S. spot Bitcoin ETFs logged $435 million in net capital inflows on Friday, marking the most robust single-day performance since early September.

Fidelity’s Wise Origin Bitcoin Fund captured $310 million of that investment activity, temporarily surpassing BlackRock’s IBIT as the primary channel for institutional capital that session.

Bitcoin is now trading near the aggregate cost basis for U.S. spot ETF holders, calculated at approximately $85,638. This positions the current valuation close to the breakeven threshold for the broader ETF investor base.

Energy market dynamics also contributed to favorable conditions. WTI crude dropped below $94 per barrel after exceeding $100 during the previous week, while Brent crude similarly declined as global markets monitored renewed diplomatic discussions between the United States and Iran.

Reuters noted that the retreat in oil prices supported gains in international equities and fixed income securities on Monday, even as market participants continued pricing in prospects for another U.S. interest rate adjustment.

Strategy expands Bitcoin reserves by 950 coins

Strategy completed an acquisition of 950 Bitcoin valued at $75.7 million during the period spanning September 14 through September 20, at an average purchase price of $79,670 per unit. The company’s cumulative holdings have reached 846,000 BTC.

Market analyst Ted Pillows noted via social media that Bitcoin had established its first higher high while reclaiming its 50-week moving average. He characterized the market trough as definitively established, signaling his optimistic view of recent technical developments.

The regulatory environment also showed signs of improvement following the SEC’s announcement of a conditional five-year exemption permitting select platforms to facilitate trading of tokenized U.S. equities on blockchain infrastructure. The Commission specified that this provisional measure applies to qualified tokenized securities venues and designated liquidity providers.

Currently, Bitcoin maintains its position above the $85,000 level, with the ETF holder average cost basis near $85,638 and the January peak region representing the next significant resistance zone.

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