Bitcoin (BTC) begins another weekly session trading near its peak prices in almost eight months as market bulls drive the asset up to $85,000.
Key points:
- Bitcoin reached $85,248 on Monday, recording its strongest performance since January 29.
- The price trajectory of BTC is moving close to the financial break-even line for US spot Bitcoin exchange-traded fund participants around $86,000.
- Traders kept an eye on crude oil values below $94 per barrel alongside bond yields amid discussions surrounding US-Iran diplomatic efforts.
Bitcoin Exceeds $85,000 Following Weekend Close
Bitcoin confronts a vital breakthrough phase as it reaches $85,000 and establishes fresh 33-week peaks. Statistics provided by TradingView display BTC/USD climbing higher after logging a weekly close of $81,120 on Sunday, representing its highest mark since the week beginning May 4.
BTC/USD one-week chart. Source: Cointelegraph/TradingView
Consequently, cryptocurrency short position liquidations surged, with figures from CoinGlass setting the aggregate cross-crypto 24-hour liquidation volume at upwards of $600 million.
Crypto liquidation history (screenshot). Source: CoinGlass
This latest upward push influences how numerous market participants assess whether valuations can maintain momentum above the former local peak of $82,950 recorded in May. During the preceding week, trader and strategist Rekt Capital characterized Bitcoin as confronting a definitive truth test while consolidating beneath that threshold.
BTC/USD one-week chart. Source: Rekt Capital on X.com
Rekt Capital cautioned that a bearish divergence was developing within the relative strength index metric on daily charts, where lower indicator peaks accompanied higher price peaks. He noted that this pattern signifies insufficient fundamental momentum to back the elevated prices, elevating the probability of an abrupt trend reversal.
With the recovery to $84,000, the daily relative strength index nears the overbought zone at 70 at the time of reporting. Bitcoin has successfully recaptured its 50-week exponential moving average standing at $77,769, which was previously identified as an essential condition for ongoing upward movement.
BTC/USD one-day chart with 50-week EMA; RSI data. Source: Cointelegraph/TradingView
Bitcoin ETF Holders Approach Break-Even Threshold
Additional investor segments also re-entered aggregate profitability, including corporate treasury holders of Bitcoin, whose total holdings feature an average acquisition cost near $80,500. Presently, market prices are nearing the purchase cost basis for buyers in United States spot Bitcoin exchange-traded funds. According to information provided by blockchain analytics firm Glassnode, this cost basis currently rests at $85,638.
Bitcoin cost-basis data. Source: Glassnode on X.com
Cryptocurrency exchange-traded products concluded the week on a strong note, with market participants increasing their BTC exposure during the climb to $81,000. American ETFs captured net capital inflows totaling $435 million on Friday, marking their largest daily accumulation since September 3, based on figures from British investment firm Farside Investors.
Even though the CLARITY Act failed to clear the Senate during the prior week, Thursday witnessed two federal financial regulators—the Securities and Exchange Commission alongside the Commodity Futures Trading Commission—advance with cryptocurrency-oriented guidelines. This development offered a lift to crypto-linked equities and seemed to elevate investor sentiment, contributing $159 million in net crypto ETF inflows during that single session.
US spot Bitcoin ETF netflows (screenshot). Source: Fidelity Investments
Breaking away from typical patterns, the leading Bitcoin ETF, BlackRock’s iShares Bitcoin Trust (IBIT), did not capture the lion’s share of incoming capital. Instead, the majority of investors directed funds into Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC), which attracted $310 million of the aggregate amount. Evaluating these recent market shifts, onchain analytics provider CryptoQuant addressed this modification in ETF inflow distributions.
“The key change is therefore not simply positive ETF activity, but a clear redistribution of flow leadership: IBIT went from dominating FBTC by nearly six times on September 3 to FBTC recording almost three times IBIT’s holdings netflow on September 18,” CryptoQuant noted in a commentary piece.
Oil Prices Decline as Trump Signals Potential Iran Dialogue
A relatively quiet week regarding major United States macroeconomic releases has shifted attention decisively toward petroleum products as inflationary expectations for the remainder of 2026 undergo upward revisions.
Following a spike past $100 per barrel last week, WTI crude oil traded beneath $94 on Monday due to optimism surrounding renewed diplomatic initiatives aimed at settling Middle Eastern tensions.
CFDs on WTI crude oil one-day chart. Source: Cointelegraph/TradingView
On Sunday, Majed Al-Ansari, a representative for Qatar’s Ministry of Foreign Affairs, mentioned that efforts aimed at resuming dialogue between Washington and Tehran had been ongoing “for the past couple of weeks.”
“A lot of ideas have been thrown back and forth,” he communicated to Bloomberg.
“This is just one iteration of these documents going back and forth, and we’re trying to bridge the gap and find the right moment to move forward.”
During a telephone conversation with Fox News on Sunday, former US president Donald Trump reportedly characterized his available strategies concerning the Iran dispute as “wiping Iran out, letting them rot economically, or making a deal.” Trump additionally noted he would “probably be open” to a meeting with Iranian president Masoud Pezeshkian at the United Nations General Assembly scheduled for this week.
Markets Anticipate Two Additional Fed Rate Increases in 2026
As previously covered by Cointelegraph, the closure of multiple petroleum transport channels has already created secondary effects on fuel pricing globally. Even though central banking institutions are tightening monetary policy via interest rate hikes, the complete consequences of this supply disruption have yet to materialize fully. Last week, Saudi Arabia advised the European Union that its refining facilities would not receive crude deliveries throughout October.
Recent metrics from CME Group’s FedWatch Tool indicate that financial markets now anticipate the US Federal Reserve lifting its baseline interest rate by another 0.25 percentage points during its October gathering. The probability for this scenario stands at 53% as of Monday. Furthermore, CME metrics highlight an approximate 40% probability of a third 0.25% increase before the conclusion of the year.
Fed target-rate probabilities (screenshot). Source: CME Group
On Tuesday, Federal Reserve Bank of Richmond President Thomas Barkin is scheduled to address the CFA Society Baltimore, an engagement that might offer additional clarity regarding the central bank’s current stance on upcoming monetary policy. Barkin is expected to deliver “insights on the current economic landscape, the latest monetary policy developments, and his outlook for the U.S. economy.”
Analysis Suggests Equities Retain Gains as Yields Soften
United States bond yields continued receding from multi-decade peaks on Monday as borrowing expenses declined alongside the retreat in oil values.
Related: Here’s what happened in crypto today
The US 30-year Treasury yield settled at 5.301% on Monday, having eased from its peak of 5.425% registered on September 11, which represented its highest levels recorded since June 2004.
US 30-year bond yield one-day chart. Source: Cointelegraph/TradingView
After responding favorably to news of US bond market intervention measures in August, Bitcoin market observers continue monitoring any shifts involving debt yields. In an analytical report produced for CME on September 16, Jim Iuorio, chief executive officer of JI Financial Strategies, asserted that regulatory interventions might function as a liquidity driver for Bitcoin and digital asset markets.
“Perhaps markets viewed these actions as being dollar-negative, pushing money back into dollar hedges like gold and Bitcoin,” he stated.
Within its most recent review, Mosaic Asset Company identified potential for equities to sustain their structural resilience amidst tighter macroeconomic policies.
“While investors are wondering what the Fed’s rate hiking cycle means for the S&P 500, evidence of strong economic growth should help keep the earnings outlook in tact. As long as the Fed is hiking at a measured pace that doesn’t call into question the growth outlook, the rally in equities can persist,” the firm concluded over the weekend.
This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.
Originally published at https://cointelegraph.com/markets/btc-price-nears-eight-month-high-above-85k-five-things-to-know-in-bitcoin-this-week?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
