Bitcoin Hits Eight-Month High of $87,381, Then Retreats to Around $85,500

Bitcoin edged down from an eight-month high after surging more than 13% over four days, as investors locked in profits.

Bloomberg reported that Bitcoin climbed as high as $87,381 during U.S. trading on September 21 before slipping back to around $85,500 in Asian trading. Even so, it remains about $10,000 above last week's low.

Bitcoin has rallied sharply alongside a rebound in risk assets such as stocks, recovering to levels last seen in late January. It still remains below the record high of $126,000 set in October last year and the level above $97,000 reached in mid-January this year.

Rich Rosenblum, co-founder of GSR, said a growing number of investors believe the bear market ended after Bitcoin quickly reclaimed $80,000, with momentum drawing sidelined capital back into the market. If the latest advance is being driven more by macro liquidity than by crypto-specific fundamentals, however, Bitcoin could come under heavy pressure if risk assets falter.

The latest rally also triggered a wave of short liquidations. CoinGlass data showed total liquidations across the crypto market topped $1 billion over the past 24 hours, including about $840 million in short positions.

Rachel Lucas, an analyst at BTC Markets, said the move appeared to reflect market structure more than conviction. She said forced buying helped drive further gains after Bitcoin broke above the top of its September trading range and pushed through a zone with heavy short liquidations.

Traders are now watching $84,000 as a key support level. Lucas said that was where the latest breakout began, and the level needs to hold if the move is a trend reversal rather than a simple short squeeze.

Bullish positioning remains dominant in derivatives markets. On options platform Deribit, open interest in Bitcoin call options stood at about 320,000 contracts, far exceeding 169,000 put option contracts.

Investor sentiment was also supported by large inflows into U.S. spot Bitcoin exchange-traded funds late last week and by Strategy resuming Bitcoin purchases after a three-week pause.

Still, questions remain over whether the rally can continue, with global oil prices hovering around $100 a barrel and U.S. Treasury yields staying elevated. Rosenblum said most cryptocurrencies have lagged stocks and gold for much of this year, while capital and attention shifted to AI. What has changed is not fundamentals but positioning, he said, with investors underweight Bitcoin and leaning short.