Bitcoin Rebounds Above $87,000 on ETF Inflows

Bitcoin rose above $87,000 on Monday, gaining as much as 7.7% to $87,354 after inflows into US spot bitcoin exchange-traded funds coincided with a wider recovery in global risk assets. The move extended a rebound of more than $10,000 from last week’s lows and moved the largest cryptocurrency back toward levels seen in January, while remaining about one-third below its October record high.

Stocks and bond markets advanced and oil prices eased as investors awaited a scheduled meeting between US and Chinese leaders. Renewed buying into US spot bitcoin ETFs added demand for the token. Smaller digital assets outperformed in some cases: Dogecoin rose as much as 14% and XRP gained about 8% on the session. Total cryptocurrency market capitalisation climbed to roughly $2.8 trillion, its highest level since late January, according to FxPro analyst Alex Kuptsikevich.

Derivatives activity showed heavy upside action. CoinGlass data indicated roughly $1 billion of cryptocurrencies positions were liquidated over the previous 24 hours, the highest level since late August. Short sellers accounted for about $878 million of those liquidations as bitcoin’s jump forced bearish positions to unwind. Options open interest on Deribit was weighted toward calls, with more than 272,000 call contracts versus about 154,000 put contracts.

Crypto-linked equities moved higher alongside the token. Coinbase shares gained about 3.5% and Circle Internet Group rose roughly 3%. A listed company that holds bitcoin on its balance sheet recorded an increase of about 9.5% in its share price. Trading volumes and flows into US spot ETFs were recorded as immediate drivers of the price uptick, while broader risk-on conditions supported demand for higher-yielding, speculative assets.

Market participants pointed to recent regulatory and monetary events shaping the backdrop. The industry had faced setbacks earlier, including the failure of the proposed Clarity Act and the Federal Reserve’s first interest-rate increase in more than three years. Sentiment subsequently improved after the US Securities and Exchange Commission approved trading of digital versions of securities in the US, which reduced some uncertainty for institutional participants.

The recent price action highlighted how concentrated positioning can move markets quickly. Large short-position liquidations produced rapid upside moves in bitcoin, and strong call open interest indicated greater bullish exposure among options traders. Hedge funds and derivatives desks adjusted positions as they responded to swings in spot prices and implied volatility.