Bitcoin Breaks Above $87,000 as Institutional Buying and Seasonal Tailwinds Drive Rebound

Bitcoin surged above $87,000 on Friday, marking its third straight week of gains, and finishing roughly unchanged after climbing 3% to $87,206. The rebound is supported by heavy institutional buying of exchange traded funds and an improving risk tone going into October. According to Pratik Kala, head of research at Apollo Crypto, 'investors globally have observed this relative strength.' The quarter's 43% gain is the biggest since the end of 2024, and Bitcoin's seasonality might also be adding a tailwind, with October delivering gains in 10 of the past 15 years.

Despite the Federal Reserve's rate hike in mid-September and the US Senate shelving a cryptocurrency regulatory legislation, Bitcoin's price remains resilient. The recovery is also buoyed by record-low sentiment two months prior, with investors viewing dips as opportunities to buy. The setup blends firmer demand, friendlier macro vibes, and a dose of crypto's favorite October lore.