Bitcoin Surges Past $87,000 on Institutional Buying and Improved Risk Tone

Bitcoin surged above $87,000 on Friday, marking a 3% gain at its peak to $87,206. This move keeps the recovery intact for a third consecutive week, with weekly gains sitting at around 1%. The price action also capped a 43% gain for the quarter through September, the biggest since the end of 2024.

The rebound is being driven by strong institutional buying of exchange-traded funds, which is supporting demand. This is happening against a backdrop of an unexpectedly resilient market, despite the US Senate shelving a closely watched cryptocurrency regulatory bill and the Federal Reserve raising interest rates in mid-September.

Pratik Kala, head of research at Apollo Crypto, noted that investors globally have observed Bitcoin's relative strength. Combined with record-low sentiment two months prior, Kala said that the sentiment is 'dips are for buying.'

Some traders are even floating bottom-calling arguments after a bruising 2026 that followed last October's sharp selloff. Seasonality might also be adding a tailwind, as October has delivered gains in 10 of the past 15 years.