Bitcoin Surges Past $86,000 Amid Strong Investment Flows

Bitcoin has made a sharp comeback to its highest level since January, reaching $86,000 and putting it on track to erase its losses for the year. Despite rising bond yields and tighter monetary policy, strong investment flows have driven the rally.

According to James Butterfill of CoinShares, the move is 'flow-driven rather than event-driven,' with steady accumulation by large holders of Bitcoin and $639 million of inflows into digital-asset investment products on September 18. Another $690 million flowed in on September 21.

The strength of these flows is particularly notable given the macroeconomic backdrop, with conditions that would ordinarily punish non-yielding assets returning to the market.