Bitcoin Surges to Eight-Month High Amid Global Risk Asset Recovery
Bitcoin has surged to an eight-month high of over $87,000 as global risk assets experience a broader recovery. According to Bloomberg, Bitcoin rose by as much as 7.7% in New York, extending its rebound by more than $10,000 from last week's lows.
The rally came alongside gains in global stocks and bonds, with lower oil prices and optimism around a planned summit between US President Donald Trump and Chinese President Xi Jinping improving broader market sentiment. Smaller cryptocurrencies also advanced, with Dogecoin rising as much as 14% and XRP gaining about 8%, Bloomberg reported.
Crypto markets saw heavy position liquidations during the rally, with liquidations of long and short positions across digital assets reaching $1 billion over 24 hours, the highest level since late August. Prateek Gupta, head of business at Mudrex, attributed the rally to a more favorable risk environment after the Federal Reserve's tone was seen as relatively dovish.
Vikram Subburaj, CEO of Giottus, noted that US spot Bitcoin ETFs recorded inflows of $433 million on September 18 and $617.6 million on September 21, following heavy outflows earlier in the week. CoinSwitch's Markets Desk cautioned that while leverage had increased alongside the price rally, stronger underlying buying would be important to support prices.