Bitcoin Blasts Past $85,000 on Strong ETF Inflows and Institutional Buying

Bitcoin's price surged nearly 5% over the past 24 hours to breach the $85,000 mark on Tuesday. The cryptocurrency's growth was attributed to strong spot ETF inflows, institutional buying, and improving risk appetite in the market.

Avinash Shekhar, Co-founder and CEO of Pi42, noted that Bitcoin's decisive move above the $80,000 resistance has strengthened its near-term outlook. However, he also warned that profit-booking could trigger intermittent volatility, with Bitcoin potentially testing the $88,000-$90,000 zone or finding support at $82,000.

The global crypto market capitalisation rose 3.5% to $2.9 trillion on Tuesday, according to CoinMarketCap data. Bitcoin and Ethereum led the gains, with Bitcoin nearing $87,000 and FOMO (fear of missing out) hitting its highest level since 2024.

Prateek Gupta, Head of Business at Mudrex, said that sustained ETF inflows remain important for the rally to continue, with resistance standing at $89,500 and support at $82,000. Bitcoin is now up about 44% this quarter, its strongest quarterly gain since Q4 2024.