Bitcoin Surges Past $85,000 as Institutional Money Floods In

Bitcoin has surpassed $85,000 for the first time in eight months, extending a rally that has gained more than 30% since August 19. Despite recent US Federal Reserve interest rate hike and failure of the Clarity Act to provide regulatory clarity for the crypto industry, Bitcoin initially stumbled but then resumed its upward trend.

The combination of new institutional money, traders unwinding bearish bets, and a general return to risk appetite as oil and bond yields fall is driving the rally. Demand for crypto ETFs, which has attracted more money after clearing technical levels, is also a key support for the price.

Short sellers who bet on Bitcoin's decline had to close their positions, adding demand and accelerating the rising market. Analyst Naeem Aslam notes that short covering, ETF inflows, and improving regulatory expectations drove the latest move.