Bitcoin hits eight-month high above $85,000 as oil prices cool
In brief
- Bitcoin reached $85,000, its highest level since January, as bulls pushed prices higher.
- Spot Bitcoin ETF investors near their $85,638 cost basis amid strong institutional demand.
- Crypto short liquidations exceeded $600 million in 24 hours as volatility spiked.
- Oil prices retreated below $94 per barrel after spiking above $100 the prior week.
Price momentum and technical signals
Bitcoin hit $85,000 and set new 33-week highs as the week opened. The move represents a significant breakout from the prior week's close of $81,120, the highest since early May. Bitcoin previously set a local high of $82,950 in May, and breaching that level opened the door to fresh highs.
Trader and analyst Rekt Capital described the moment as critical. "Bitcoin (BTC) starts a new week at its highest levels in nearly eight months as bulls propel the market to $85,000," the analyst noted, flagging a bearish divergence on the RSI indicator where lower highs accompanied higher price highs—a potential warning sign for momentum traders.
ETF flows and investor positioning
US spot Bitcoin ETF investors now sit near their cost basis of $85,638, meaning institutions that bought at the peak are approaching breakeven. US Bitcoin ETFs saw net inflows of $435 million on Friday, their largest daily tally since September 3, signaling renewed appetite.
Fidelity's Wise Origin Bitcoin Fund (FBTC) captured most of the recent inflows. FBTC accounted for $310 million of recent ETF inflows, a dramatic shift from early September when iShares' IBIT dominated flows by nearly six times. Bitcoin corporate treasuries have returned to aggregate profit, with a cost basis around $80,500.
Oil and macro tailwinds
WTI crude oil traded below $94 on Monday after spiking above $100 per barrel the previous week, easing inflation concerns that had weighed on risk assets. The retreat in oil prices coincided with hopes of fresh diplomatic efforts and reduced geopolitical tensions.
Liquidations spiked across crypto markets. Crypto short liquidations exceeded $600 million in 24 hours as the rally squeezed bearish positions. Meanwhile, Bitcoin reclaimed its 50-week exponential moving average at $77,769, a technical milestone many had flagged as a prerequisite for sustained upside.
