Bitcoin jumps to over US$84,800 after ETF flows turn positive

[NEW YORK] Bitcoin surged near US$85,000 to its highest since late January, extending a sharp rebound as falling oil prices and a broader return of risk appetite helped cryptocurrencies move past setbacks on US crypto legislation and monetary policy.

The original cryptocurrency climbed as much as 5.1 per cent to US$85,222 in early New York trading, roughly US$7,000 above the lows touched last week after the Clarity Act stalled and the Federal Reserve raised interest rates. Even after that rebound, Bitcoin remains roughly a third below its record last October.

The rally comes alongside advances in stocks and bonds, as falling oil prices and optimism ahead of a summit between US President Donald Trump and China’s President Xi Jinping are buoying markets more broadly. Rival digital assets have also bounced. Ether, the second-largest token, rose by more than 4.3 per cent to US$2,747, while other cryptocurrencies, including XRP, Solana and Monero, also posted gains.

“Financial markets have rediscovered a risk-on frame of mind after being consumed with worry about government bond yields, debt piles and the prospect of a return to tighter policy at the world’s most powerful central bank,” said Chris Beauchamp, chief market analyst at investing and trading platform IG.

Bitcoin’s gains build upon a recovery that began late last week, when crypto absorbed the failure of the landmark Clarity Act to establish a clearer understanding of industry regulation as well as the Federal Reserve’s first interest-rate increase in more than three years.

A green light on Thursday (Sep 17) from the Securities and Exchange Commission for digital versions of securities to start trading in the US helped to brighten the mood. 

“The crypto market capitalisation has risen to US$2.8 trillion, its highest level since the end of January this year,” said Alex Kuptsikevich, the FxPro chief market analyst. “Although Friday’s rally was followed by increased selling pressure, buyers have once again been dominating the cryptocurrency market since Sunday.”

Bitcoin open interest on the options trading platform Deribit was heavily dominated by calls, signalling bullish sentiment. The platform showed more than 272,000 contracts for the right to buy the token compared with over 154,000 for puts, or the right to sell.

“The Bitcoin options market is positioned to capture the upside,” said Pratik Kala, a portfolio manager at digital-asset hedge fund Apollo Crypto. “People are repositioning from downside protection to wanting to capture the upside.”

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But traders are not convinced the momentum can last given the difficult macroeconomic headwinds, with crude oil still above US$100 a barrel and US Treasury yields elevated.

Bitcoin is well off its 2026 high of over US$97,000 in mid-January, and even further from its October record. Retail enthusiasm has also proven hard to rekindle as artificial intelligence stocks and other AI-linked trades compete for the same pool of speculative capital.

“For this week, there aren’t any big catalysts to watch out for per se, but any hawkish or dovish remarks by Fed officials could impact the market,” said Jeff Mei, chief operating officer of BTSE. BLOOMBERG