Bitcoin Surges to 11-Week High

Bitcoin held above $85,000 on Tuesday, hovering near its highest level since January while keeping its 7% gain over the past five days and about 35% increase over the past three months. Recent gains were partly supported by softer crude prices and renewed institutional demand, with US spot Bitcoin ETFs recording $433 million in net inflows on September 18, while corporate buying also increased as Strategy resumed Bitcoin purchases after a three-week pause. Regulatory developments also offered support, with the US SEC granting a five-year exemption to platforms using blockchain infrastructure to facilitate trading in tokenized stocks and other securities. The move came even as the US Senate last week halted further progress on the Clarity Act, which aims to establish clearer rules for digital assets. Meanwhile, traders are watching this week’s US-China summit for signs of progress toward easing trade tensions, which could further influence broader risk sentiment.

Bitcoin topped $86K on Monday, extending the rally that began last week and reaching its highest level since January. The cryptocurrency was supported by improving overall market sentiment, continued declines in oil prices, progress on the regulatory front and renewed institutional inflows. The US Securities and Exchange Commission introduced a five-year exemption for platforms facilitating the trading of tokenised stocks and other securities using blockchain technology. This came despite the US Senate voting last week to block the Clarity Act from advancing. The legislation would establish a regulatory framework for digital assets. Meanwhile, traders are also focused on this week’s summit between US President Donald Trump and Chinese President Xi Jinping, with markets looking for signs of progress towards easing trade tensions. Demand for Bitcoin has also strengthened. US spot Bitcoin ETFs recorded $433 million in net inflows on September 18, led by Fidelity and BlackRock.

Bitcoin rose toward $82,000 in late September, approaching its highest level since January amid renewed institutional demand. US spot Bitcoin ETFs recorded $433 million in net inflows on September 18, led by Fidelity and BlackRock, reversing heavy outflows earlier in the week. Still, the funds ended the week with only $6.2 million in net inflows. The gain came despite the Federal Reserve raising rates by 25 bps last week and signaling further tightening, while US Treasury yields remained elevated. The divergence from the broader macro backdrop has raised interest in Bitcoin as a potential hedge against market and economic risks. Meanwhile, the Senate failed to advance the Clarity Act on September 15, while the SEC and CFTC moved ahead with crypto rulemaking under existing authority. The CFTC also submitted a crypto-market proposal to the White House for review.