Bitcoin Surges Past $87,000 as Institutional Demand Fuels Rally
Bitcoin's price surged to nearly $86,000 on Wednesday, briefly crossing $87,000 for the first time since January 2026. The rally is driven by institutional demand and short covering, with US spot Bitcoin ETFs attracting nearly $2 billion over four trading sessions through September 22.
Riya Sehgal, Research Analyst at Delta Exchange, attributed the support to short covering and a more favorable risk backdrop, including softer oil prices and some easing in Treasury yields. Derivatives positioning added momentum, with over $1 billion worth of crypto positions liquidated, mostly short positions, according to Sehgal.
Balaji Srihari, VP-Business at CoinSwitch, noted that strong institutional demand and short liquidations have accelerated Bitcoin's move higher. The sustainability of ETF inflows will be key for the next leg of the move.
The broader crypto market also gains, with XRP, Solana, and Ethereum posting gains over the past week. Investors should be mindful of the sharp rise in prices and potential volatility around upcoming US inflation and employment data.