Bitcoin Hits Eight-Month High Near $85,000 as Bulls Take Control
Bitcoin Surpasses $85,000 for First Time Since January
Bitcoin (BTC) climbed above $85,000 on Monday, marking its highest price since January 29. The digital currency traded at $85,248, its strongest level in nearly eight months.
The move follows a weekly close of $81,120 on Sunday, which was itself the highest weekly close since the week of May 4.
Key Numbers Behind the Rally
- Bitcoin hit $85,248, a new 33-week high.
- Cross-crypto liquidations exceeded $600 million in 24 hours, according to CoinGlass.
- US spot Bitcoin ETFs saw net inflows of $435 million on Friday, the largest daily total since September 3.
- The average cost basis for US spot Bitcoin ETF investors sits at $85,638, based on data from Glassnode.
What’s Driving the Move?
Oil prices fell below $94 per barrel after spiking above $100 last week, with hopes of renewed US-Iran diplomacy. Qatar’s foreign ministry spokesperson said talks have been ongoing “for the past couple of weeks.”
Bitcoin’s rally also comes after two US regulators—the SEC and CFTC—moved ahead with crypto-related policies last week, providing a boost to crypto stocks.
ETF Flows Shift Leadership
Notably, the largest Bitcoin ETF, BlackRock’s iShares Bitcoin Trust (IBIT), did not lead inflows. Instead, Fidelity’s Wise Origin Bitcoin Fund (FBTC) took the top spot, accounting for $310 million of the total. Analysts at CryptoQuant noted a “clear redistribution of flow leadership” between the two funds.
What Analysts Say
Trader Rekt Capital had warned of a bearish divergence on the daily RSI, where lower highs for the indicator paired with higher price highs, suggesting a lack of momentum. However, Bitcoin’s daily RSI is now approaching “overbought” territory at 70.
Bitcoin has also reclaimed its 50-week exponential moving average (EMA) at $77,769, a level previously identified as key for continued upside.
What’s Still Unclear
Whether Bitcoin can hold above its prior local high of $82,950 from May remains uncertain. Additionally, markets are watching for potential Federal Reserve rate hikes, with odds of a 0.25% increase in October currently at 53%.
Why It Matters
Bitcoin’s rise is bringing many investors back into profit at their cost basis. The near-breakeven point for ETF holders suggests that recent buyers could soon be in the green, which may influence market sentiment.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.