Bitcoin Reclaims $87K as Bull Market Momentum Builds

Bitcoin surged past the $87,000 mark for the second time within two days, reaching a peak of $87,251 before settling near $86,400. The move followed an intraday low of $85,163 on September 22 and kept the cryptocurrency’s market cap around $1.74 trillion.

Price Action and Liquidity

On the daily chart, Bitcoin reclaimed support above $85,000 and posted a modest gain of just over 1% before easing back. Short‑position liquidations fell sharply to $48 million, down from $171 million twelve hours earlier and far below the $454 million recorded on Monday. In contrast, long‑position liquidations rose to nearly $14 million, up from $6 million on Monday.

Market Sentiment and Technical Outlook

Since mid‑August, the Crypto Fear and Greed Index has stayed above 60, indicating bullish sentiment. Technical indicators show Bitcoin back above its 50‑ and 200‑week moving averages, with a 35% price increase from pre‑August‑19 levels.

Regulatory and Macro Drivers

Institutional commentary highlighted several factors supporting the uptrend: the U.S. Treasury’s bond‑buyback announcement, recent SEC actions such as the Innovation Exemption, and discussions around a Strategic Bitcoin Reserve. On the macro side, Japan’s recent rate hike and a weaker yen suggest continued loose liquidity conditions favorable to Bitcoin.

ETF Inflows

U.S. spot Bitcoin ETFs recorded net inflows of $999 million in a single day, one of the largest inflows in the past eleven months, adding further momentum to the market.