Bitcoin Tries to Hold Above $86,000 After Hitting a New Eight-Month High

Bitcoin is holding around $86,000–87,000 after climbing to $87,350 – its highest level since January 29, 2026. The rally came alongside a nearly $1 billion inflow into US spot Bitcoin ETFs and improving risk appetite among investors as oil prices temporarily fell.

On Monday, BTC decisively broke through its May high and rose to $87,350. On Tuesday, it pulled back to roughly $85,000 before recovering above $86,000. Cointelegraph describes the current range as the market’s attempt to turn $86,000 into a new support level.

At the same time, US stock indexes stayed near record levels. The Nasdaq hit a new intraday all-time high on September 22, which also supported demand for risk assets.

Bitcoin ETFs Take In Nearly $1 Billion in a Day

One of the most notable drivers was the inflow of institutional capital. On September 21, US spot Bitcoin ETFs drew $999 million in net inflows – the biggest daily result since October 2025.

According to SoSoValue, BlackRock iShares Bitcoin Trust led with inflows of about $381 million, followed by ARK 21Shares Bitcoin ETF with $289 million and Fidelity Wise Origin Bitcoin Fund with roughly $239 million.

At the same time, the structure of the derivatives market suggests the price spike may not have been driven by new buyers alone.

As CoinDesk notes, crypto futures trading volume rose 38% in 24 hours to $292 billion, while open interest grew only about 1%. At the same time, roughly $768 million in liquidations occurred, mostly of short positions.

That combination looks more like a short squeeze – a forced closing of bets on a price decline – than a wave of new long-term positions being opened.

Oil First Fell Below $90, Then Quickly Recovered

A sharp intraday drop in oil prices provided additional support. WTI futures fell to $89.16 a barrel after reports that Saudi Arabia’s East-West pipeline had resumed operations.

Reuters reported that about 4 million barrels of oil a day had been rerouted through this route before the shutdown. Returning to full capacity after the damage could take six to eight weeks.

Cheaper oil potentially eases inflation pressure and, in turn, the need for further Fed tightening – usually a positive for Bitcoin and other risk assets.

But the effect proved unstable. Oil later rebounded sharply: WTI climbed to about $95.3, while Brent reached $100. So it is too early to tie Bitcoin’s future moves to the oil market alone.

Glassnode, meanwhile, noted that Bitcoin’s MVRV ratio rose above its 365-day moving average. Similar crossovers occurred at the start of previous rallies, but the historical pattern alone does not guarantee the rally will continue.