Bitcoin jumps nearly 5% to cross $85,000 as strong ETF inflows and institutional buying boost crypto momentum

Synopsis

Bitcoin has regained momentum after breaking above key resistance levels, supported by stronger spot ETF inflows, institutional demand and a broader risk-on mood. Analysts expect the rally to face resistance near $89,500, while rising futures open interest and elevated leverage could increase volatility if fresh buying fails to keep pace.

Bitcoin jumped nearly 5% in the past 24 hours to cross the $85,000 mark on Tuesday, as strong spot ETF inflows, institutional buying and improving risk appetite renewed momentum across the crypto market. The cryptocurrency was trading at $85,310 as of 12:30 pm.

Over the past 24 hours, Bitcoin gained 4.29%, while Ethereum rose 2.06%. Among major altcoins, BNB, XRP, Solana, Tron, Dogecoin and Cardano gained up to 11.93%, while Hyperliquid fell 0.85%.

Avinash Shekhar, Co-founder and CEO of Pi42, said Bitcoin’s decisive move above the $80,000 resistance has strengthened its near-term outlook, although profit-booking could trigger intermittent volatility. Bitcoin may now test the $88,000-$90,000 zone, while $82,000 is emerging as an important support level.

Crypto TrackerTOP COINS (₹) XRP145 (5.28%)Bitcoin8,158,577 (4.41%)Ethereum260,908 (2.7%)BNB75,101 (2.02%)Tether96 (-0.04%)Also Read |Sterling and Wilson Renewable Energy shares rally 8% after securing Rs 985 crore domestic and global orders

He further said Ethereum also advanced to around $2,730 but continued to underperform Bitcoin, indicating that the rally remains largely concentrated in the market leader.

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The global crypto market capitalisation rose 3.5% to $2.9 trillion on Tuesday, according to data, as bullish sentiment strengthened across the market. Bitcoin and Ethereum led the gains, with Bitcoin nearing $87,000 and FOMO around the cryptocurrency hitting its highest level since 2024. The move also wiped out $648 million in bearish positions, according to the CoinDCX Research Team.

Prateek Gupta, Head of Business, Mudrex said Bitcoin surged above $87,000 on Monday, reaching an eight-month high as a broad risk-on move lifted equities and crypto after the Fed’s tone was seen as more dovish than expected.

Bitcoin is now up about 44% this quarter, its strongest quarterly gain since Q4 2024 and sustained ETF inflows remain important for the rally to continue. Resistance stands at $89,500, with support at $82,000, Gupta further said.

Over the last week, Bitcoin and Ethereum were up 10.42% and 9.84% respectively. Among the major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin, and Cardano gained upto 20.20%.

BTC has extended its rally to above $87K after breaking above the $82,000 resistance, with roughly $750 million in short positions liquidated as bearish positions were squeezed out, said CoinSwitch Markets Desk.

ETF flows have also turned positive, supporting the move, while futures open interest has risen by around $2 billion, indicating fresh leverage entering the market and without stronger underlying buying, elevated positioning could make BTC vulnerable to sharper pullbacks, CoinSwitch Markets Desk further said.

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Market perspective

Vikram Subburaj, CEO, Giottus: Bitcoin has moved above $86,000 after breaking through the $82,800 resistance zone. The rally is being supported by a sharp improvement in US spot Bitcoin ETF flows. ETFs recorded inflows of $433.0 million on September 18 and $617.6 million on September 21, after heavy outflows earlier in the week.

Riya Sehgal, Research Analyst, Delta Exchange: Bitcoin has reclaimed the $85,000 level for the first time in eight months and briefly pushed above $87,000. The move came amid an explosive rally that triggered more than $1 billion in liquidations across the crypto derivatives market.

Nischal Shetty, Founder, WazirX: Bitcoin’s move above $86,000 marks a notable shift in market sentiment after several months of sustained pressure. The recovery above the important $80,000 level, alongside the formation of a golden cross, has added confidence to the broader market. Investors also appear to have looked beyond the setback to the CLARITY Act, focusing instead on continued regulatory activity from the SEC and CFTC separately.

Vikas Gupta, Country Manager – India, Bybit: Bitcoin’s recent recovery toward the 86K – 87K range is being supported by renewed institutional demand, stronger spot ETF inflows and evolving US regulatory developments. The market has shown resilience despite the Fed’s rate hike and the setback to the CLARITY Act, indicating that investor sentiment is being influenced by factors beyond monetary policy.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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