Bitcoin (BTC) rallied nearly 7% on Monday, crossing $87,000 and reaching an intraday high of $87,397 before closing at $86,593. It traded at levels last seen in January 2026.
BTC’s Monday rally came as global stocks and bonds reported substantial gains. At the same time, lower oil prices and a planned summit between US President Donald Trump and Chinese President Xi Jinping lifted market sentiment.
Bitcoin and Broader Crypto Market Rallies
Bitcoin (BTC) is currently trading around $86,197, up almost 2% over the past 24 hours. Meanwhile, Ethereum (ETH) followed a similar trajectory, rising to $2,804 before settling at $2,749, up almost 1% in the past 24 hours. Ripple (XRP) is up over 4% at $1.53, while Solana (SOL) is up 1.30%, trading around $117. Dogecoin (DOGE), Cardano (ADA), Stellar (XLM), Uniswap (UNI), and Litecoin (LTC) also recorded notable increases.
According to Pratik Gupta, head of Business at Mudrex, a favorable risk environment has helped the rally, while lower oil prices have eased inflation concerns. Gupta also highlighted short covering as another factor. Meanwhile, CoinGlass reported liquidations of long and short positions across crypto crossed $1 billion in 24 hours, the highest since August.
BTC is up 44% this quarter, marking its strongest gain since Q4 2024. Mudrex also highlighted Strategy’s purchase of 950 BTC, taking its total holdings to 846,000 BTC. Meanwhile, CoinSwitch’s Markets Desk said around $750 million in short positions were liquidated as BTC broke above $82,000 toward $87,000. However, it highlighted a $2 billion jump in futures open interest, indicating leverage had also increased. WazirX founder Nischal Shetty said BTC’s latest rally marks a significant improvement in market sentiment, highlighting renewed institutional activity after a brief period of uncertainty following the Federal Reserve raising interest rates and the Senate failing to pass the CLARITY Act.
Spot Bitcoin ETFs Record Substantial Inflows
Spot Bitcoin ETFs reported substantial outflows totaling $462.7 million for the week ending September 11. The outflows broke a three-week inflow streak. The ETFs resumed inflows on September 14, bringing in $159.9 million, before recording $450 million and $290 million in outflows on September 15 and September 16. The inflow streak resumed on September 17 with $159 million and $433 million on September 18. Bitcoin ETFs reported $999 million in inflows on Monday, propelling BTC to an intraday high of $87,397.
Inflation Concerns
Inflation is another key factor driving demand for BTC. At least some ETF inflows are being driven by investors looking for a hedge against inflation. The US Bureau of Labor Statistics has reported that consumer prices rose 3.4% year over year in August, fueling concerns that the dollar is losing purchasing power. Some investors are worried the decline will continue and are actively looking for fixed-supply assets, with BTC fitting the narrative. Other macroeconomic concerns and a volatile geopolitical situation have also dampened investor sentiment.
Miner Stress and Capitulation
The third factor buttressing BTC’s latest price action is the on-chain data on miner stress and capitulation. A research report by VanEck stated that eight of twelve holder capitulation signals, including average holding periods and liquidation rates of supply, were flashing. Mining difficulty also fell 18.3% from its November peak. The decline suggests unprofitable miners stopped mining or sold some holdings to cover costs. However, VanEck’s report suggests the squeeze is easing, with the August 8 adjustment raising mining difficulty by 1%.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
