Key Highlights
- BTC surged past the $85,000 threshold for the first time in eight months, peaking at approximately $85,248.
- The cryptocurrency has successfully recovered its 50-week exponential moving average positioned around $77,769 following last week’s close at $81,120.
- Bitcoin-focused spot ETFs in the United States attracted $435 million in net capital on Friday, representing the largest single-day influx since early September.
- Declining crude oil valuations and softening Treasury yields created favorable conditions for risk-on assets, despite ongoing expectations for additional Federal Reserve policy tightening.
- Strategy expanded its Bitcoin reserves by acquiring 950 BTC worth $75.7 million, bringing its aggregate holdings to 846,000 BTC.
Bitcoin (BTC) shattered the $85,000 resistance level on Monday, marking its most significant price point in approximately eight months. The leading cryptocurrency touched $85,248 during trading sessions after finishing the prior week at $81,120.
This breakthrough represents Bitcoin’s initial climb above the $85,000 mark since the closing days of January. At press time, BTC was changing hands near $85,139, reflecting a daily gain of approximately 5.7%.
The upward momentum emerged following a rebound from levels below $76,000, which occurred after the Federal Reserve’s recent rate decision last week. Market participants re-entered positions throughout the weekend, propelling BTC beyond its May peak of $82,950.
The price surge triggered a wave of short position liquidations. Aggregate cryptocurrency liquidations surpassed $600 million within a 24-hour window.
Institutional Demand and Energy Markets Fuel Bitcoin Rally
Bitcoin has successfully recaptured its 50-week exponential moving average situated around $77,769. The daily Relative Strength Index has approached the 70 threshold, signaling intensifying bullish momentum.
Exchange-traded fund activity showed notable improvement concurrent with the price rally. U.S. Bitcoin spot ETFs attracted $435 million in net capital inflows on Friday, marking the most robust single-day performance since the beginning of September.
Fidelity’s Wise Origin Bitcoin Fund captured $310 million of these inflows, temporarily surpassing BlackRock’s IBIT as the dominant source of institutional capital that session.
Bitcoin is now trading near the estimated average acquisition cost for U.S. spot ETF participants, calculated at approximately $85,638. This positions the current valuation close to the collective breakeven point for institutional ETF investors.
Energy commodity markets provided additional tailwinds. West Texas Intermediate crude retreated below $94 per barrel after exceeding $100 during the previous week, while Brent crude similarly declined amid reports of renewed diplomatic engagement between the United States and Iran.
According to Reuters, the decline in oil valuations supported global equity and fixed-income markets on Monday, even as market participants continued pricing in the possibility of additional U.S. interest rate increases.
Strategy Continues Bitcoin Accumulation Strategy
Strategy acquired an additional 950 Bitcoin tokens for $75.7 million during the period spanning September 14 through September 20, at an average price of $79,670 per unit. The company’s cumulative Bitcoin reserves now total 846,000 BTC.
Market analyst Ted Pillows highlighted via social media that Bitcoin had established its first higher high while simultaneously reclaiming its 50-week moving average. He characterized the market bottom as definitively confirmed, expressing a decidedly optimistic outlook on the developing technical formation.
The regulatory environment also showed signs of improvement after the Securities and Exchange Commission granted a provisional five-year exemption permitting specific platforms to facilitate trading of tokenized U.S. equities on distributed ledger technology infrastructure. The SEC clarified that this authorization carries conditions and applies exclusively to approved tokenized securities platforms and authorized liquidity providers.
Currently, Bitcoin maintains its position above the $85,000 level, with the ETF investor average cost basis near $85,638 and the January peak zone representing the next critical resistance area to monitor.
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