Bitcoin continued to trade near the $86,000 mark on September 23 as strong institutional demand and heavy inflows into US spot Bitcoin ETFs supported the recent cryptocurrency rally. 

Bitcoin was trading around $86,300, while the broader crypto market remained firm after the digital asset gained nearly 14% over the past week.

The latest rally has been driven largely by renewed institutional participation. US spot Bitcoin ETFs attracted nearly $999 million in net inflows on September 21, marking their strongest single-day inflow in several months. The latest buying also extended a three-session streak of ETF inflows, with total inflows reaching around $1.59 billion over that period.

BlackRock’s iShares Bitcoin Trust was among the biggest beneficiaries of the latest demand, followed by funds from ARK 21Shares and Fidelity. The strong ETF flows suggest that institutional investors have continued adding exposure despite recent uncertainty around US monetary policy and cryptocurrency regulation.

Bitcoin’s recovery has also come despite the US Federal Reserve raising interest rates by 25 basis points and the US Senate failing to advance the CLARITY Act, a proposed cryptocurrency regulation framework. 

The market response suggests that investors had already factored in some of these developments. Bitcoin has instead benefited from improved risk appetite and renewed demand for digital assets.

Short covering has added further momentum to the move. Data cited by Gadgets 360 showed that around $648 million worth of short positions were liquidated as Bitcoin climbed, increasing buying pressure across the market. Ethereum and several major altcoins have also gained, indicating that the recovery is extending beyond Bitcoin.

Bitcoin’s next major technical levels are now being closely watched. Market participants are monitoring the $87,000 area as immediate resistance, while the $83,000-$85,000 zone has emerged as an important support range. 

A sustained flow of institutional money could remain important for determining whether the recent rally can hold its momentum.

Ready to invest like a pro? Tradz by EquityPandit app equips you with 100+ Free tools and knowledge you need to succeed. Download the Tradz by EquityPandit app and gain access to daily stock lists and insightful market analysis and much more!