Bitcoin (BTC) soared above the $85,000 mark on Monday, achieving its highest price in nearly eight months. The leading cryptocurrency peaked at $85,248 during the session, rallying from a close of $81,120 at the end of the previous week.
Technical breakout fuels rally
BTC’s ascent marked its first move above the $85,000 level since the final days of January. During intraday trading, Bitcoin hovered around $85,139, recording approximately 5.7% gains for the day.
The cryptocurrency began its push after rebounding from levels below $76,000, a dip triggered by the Federal Reserve’s recent interest rate hike. As bullish sentiment gained momentum over the weekend, Bitcoin surpassed its earlier May high near $82,950.
A cascade of liquidations on short positions took hold as prices advanced. Across cryptocurrency markets, total liquidations exceeded $600 million within a 24-hour period. Analysts noted that this uptick in volatility underscored the strength of the breakout.
With Bitcoin reclaiming its 50-week exponential moving average near $77,769 and the daily relative strength index approaching the 70 level, technical signals pointed to intensified buying interest. This dynamic increased market scrutiny of trend shifts and investor positioning, especially as timing has proven critical for large moves. In this context, the meme token sector has also been a focal point for rapid speculative activity. In the meme token market, an internet trend can transform into millions of dollars of interest within days. According to data shared by Fomo App, a trade involving “Niu Lai”—which turned an initial $99 investment into approximately $370,000, stands out as a striking example of this activity. In this market, tracking not only prices but also the timing and token choices of investors is crucial. Fomo App brings token discovery and trading together on a single platform, featuring social feeds, investor rankings, and trade notifications. Discover Fomo App to follow the world of meme tokens alongside investor activity.
ETF inflows and macro trends
Spot Bitcoin exchange-traded funds in the United States attracted $435 million in net capital inflows on Friday, the highest daily intake since early September. Fidelity’s Wise Origin Bitcoin Fund led with $310 million, temporarily surpassing BlackRock’s IBIT in daily activity.
Bitcoin’s current trading range aligns closely with the average cost basis for U.S. spot ETF holders at around $85,638, placing most ETF investors near their breakeven point.
Macro conditions also played a supportive role. WTI crude oil dropped below $94 per barrel after trading above $100 the previous week, while Brent crude similarly declined as diplomatic talks between the United States and Iran progressed. According to Reuters, the fall in oil prices contributed to gains in global equity and fixed income markets, despite ongoing market expectations for further tightening by the Federal Reserve.
Spot Bitcoin ETF inflows surged to $435 million on Friday, the highest single-day increase since early September. Fidelity attracted $310 million, outpacing BlackRock’s product for the session.
Strategy expands Bitcoin holdings
Strategy, a prominent U.S. entity, added 950 BTC worth $75.7 million between September 14 and September 20, at an average price of $79,670 per coin. This brought its total Bitcoin reserves to 846,000 BTC.
Market analyst Ted Pillows highlighted the relevance of the recent breakout, stating that Bitcoin recorded its first higher high while regaining the 50-week moving average. Pillows saw this as confirmation of the current market bottom and a positive technical signal.
Technical analysts observed that Bitcoin established its first higher high and recaptured its 50-week moving average, supporting the view that the correction phase has ended.
Regulatory sentiment showed improvement following the U.S. Securities and Exchange Commission’s announcement of a five-year conditional exemption, allowing select platforms to trade tokenized U.S. equities on blockchain networks. The Commission limited this temporary measure to qualified venues and designated liquidity providers.
As of the latest session, Bitcoin maintained support above $85,000, with the ETF holder cost basis at approximately $85,638. The January price peak has been identified by analysts as the next key resistance area.
