Bitcoin jumps to $87,354 on ETF flows, risk-on surge
Bitcoin rose 7.7% to $87,354 in New York on Friday, its highest level since late January, as a broad risk-on rotation in global markets lifted crypto assets alongside stocks and bonds.
Source: straitstimes.com · September 22, 2026 at 5:02 AM · AI-assisted report
Single-sourceSINGAPORE, 22 SEPTEMBER 2026 —
Bitcoin rose 7.7% to $87,354 in New York on Friday, its highest level since late January, as a broad risk-on rotation in global markets lifted crypto assets alongside stocks and bonds.
Market Impact
The rally extended gains from last week’s lows, with Bitcoin recovering over $10,000 despite the failure of the U.S. Clarity Act—a regulatory proposal that had fueled earlier speculation—and the Federal Reserve’s first interest rate hike in more than three years. The move followed a $1 billion spike in liquidations of both long and short positions over 24 hours, the highest since late August, according to Coinglass data.
About $878 million of those were short liquidations, mirroring a pattern seen during Bitcoin’s sharp January rebound.
The surge comes as financial markets shifted from weeks of focus on bond yields, debt concerns, and Fed policy to a renewed appetite for riskier assets. "Financial markets have rediscovered a risk-on frame of mind," said Chris Beauchamp, chief market analyst at IG. "The crypto market is now trading on momentum rather than fundamentals, but the underlying macro picture remains challenging."
Bitcoin’s recovery began late last week after the U.S. Securities and Exchange Commission approved digital securities trading, a development that eased regulatory uncertainty. The asset remains roughly 30% below its October 2025 peak of $97,000, however, and traders cautioned that sustained gains would require clearer signs of easing monetary tightening or a broader rebound in speculative sectors.
Options markets reflected bullish positioning, with Deribit showing 272,000 call contracts—rights to buy Bitcoin—outpacing 154,000 puts, or bets on a decline. Pratik Kala, portfolio manager at digital-asset hedge fund Apollo Crypto, noted that traders were shifting from downside protection to capturing upside potential. "Bitcoin options market is positioned to capture the upside," he said. Yet, crude oil near $100 a barrel and elevated U.S. Treasury yields could limit further advances.
The rally also lifted smaller tokens, with Dogecoin up 14% and XRP rising 8%, while total crypto market capitalization climbed to $2.8 trillion, its highest level since the end of January 2026. Analysts at FxPro observed that while selling pressure emerged after Wednesday’s rally, buyers had reasserted control by Thursday. However, retail participation remains muted, with AI-linked stocks siphoning speculative capital away from crypto.
Bitcoin’s open interest on Deribit also suggests caution: while calls dominate, the absence of a clear breakout above $90,000—a psychological barrier—could signal hesitation among institutional players. "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.
With no immediate high-impact events on the horizon, traders will watch Fed officials’ remarks for hints on policy direction. Should the central bank signal a pause in rate hikes, Bitcoin could extend its recovery. But if oil prices or Treasury yields rise further, the rally may stall, leaving the asset vulnerable to another pullback.
For now, the surge reflects a broader market rotation into risk assets, but its sustainability hinges on whether crypto can decouple from equities and bonds—or if the next leg of the rally will be driven by fundamentals rather than momentum.