Bitcoin Defies Bearish Trends to Surge Past $87K
Bitcoin's price surged to nearly $87,400 in less than a week, despite two significant events that would typically be bearish for the cryptocurrency. The Senate failed to advance the CLARITY Act, which aimed to establish a clearer structure for the US digital asset market, and the Federal Reserve raised interest rates by 25 basis points.
However, rather than causing a decline in price, these events seemed to have been priced in already. Analysts pointed out that much of the de-risking occurred before the Fed decision and Senate vote, creating a 'sell the rumor, buy the news' setup.
The real catalyst for the rally was the influx of nearly $1 billion into US spot Bitcoin ETFs on September 21st. This marked one of the strongest daily hauls in nearly a year, with BlackRock's IBIT alone collecting around $381 million, and ARKB taking in $289 million.
The breakout through resistance levels then turned into a short-seller trap, with hundreds of millions of dollars in bearish positions being closed. This forced buying further accelerated the price increase, propelling Bitcoin to its intraday high near $87,400.