Bitcoin Surges Past $86,000 as Institutional Demand Boosts Price

Bitcoin has continued its rebound into a third straight week, with the original cryptocurrency climbing above US$86,000 on October 2. The asset's price rose as much as 2.66% before paring gains to trade around US$86,200 at 10:30am in London.

The increase in Bitcoin's price comes as investors return to risk assets ahead of October. Strong institutional flows into exchange-traded funds have boosted demand for the asset, with Bitcoin rising roughly 2% this week.

This marks the biggest quarter for Bitcoin since the end of 2024, with the asset gaining about 40% in the three months through September.

Despite recent macro trends, including the US Senate's failure to advance a crypto regulation bill and the Federal Reserve raising interest rates in mid-September, Bitcoin has emerged relatively unscathed.

Pratik Kala, head of research at Apollo Crypto, notes that investors globally have observed Bitcoin's relative strength, combined with record-low sentiment two months prior, leading to a sentiment of 'dips are for buying'.