Bitcoin rises to $86,342 as crypto market cap hits $2.95 trillion

Bitcoin surged to $86,342 on October 5, 2026, marking a 1.83% gain in early trading and a 3.44% rise over the past week. The total cryptocurrency market cap increased by 1.86% to $2.95 trillion, reflecting broader market recovery. Bitcoin's market dominance stood at 59.15%, with a significant weight of 69.24% in the CMC20 index, highlighting its leading role in the crypto space.

Analysts warn that rising global bond yields could create a more restrictive liquidity environment for crypto markets. Nischal Shetty of WazirX noted that the US Treasury yield reaching 5.34% increases the opportunity cost of holding non-yielding assets like Bitcoin, potentially slowing institutional allocations. Indian crypto sentiment may also be influenced by the RBI's policy decisions, inflation outlook, and rupee movement this week.

Prateek Gupta of Mudrex observed a sharp decline in ETF demand, with spot Bitcoin funds attracting just $223 million last week compared to $2.39 billion previously. On-chain signals remain mixed, with large holders adding 75,000 BTC in 30 days and exchange reserves at their lowest since 2023. Bitcoin faces resistance at $88,500, with support standing at $83,000.

Experts advise caution, recommending a staggered investment approach until the macroeconomic outlook becomes clearer. Vikram Subburaj of Giottus emphasized the need to avoid chasing sharp rallies, while Avinash Shekhar of Pi42 highlighted the importance of disciplined leverage and clearly defined investment levels.