Bitcoin jumps to over $108,200 after ETF flows turn positive

On September 21, Bitcoin surged past $87,000, driven by a surge in riskier assets across Wall Street. The cryptocurrency climbed as much as 7.7% to $87,354 in New York, marking a rebound of over $10,000 from recent lows as the crypto market surpassed the collapse of a major US law and the Federal Reserve's interest rate hike. Bitcoin had reached late January levels but was still around a third below its October 2025 record.

The rally coincided with gains in stocks and bonds, buoyed by falling oil prices and hopes for talks between US President Donald Trump and China's Xi Jinping. Liquidations of long and short positions in digital assets surged to $1 billion in 24 hours, with $878 million in short positions liquidated. Analysts noted that financial markets had embraced a risk-on mindset after a focus on bond yields, debt levels, and tighter policy from the Federal Reserve.

The Securities and Exchange Commission's approval of digital securities trading in the US on September 17 contributed to a positive market mood. Bitcoin's market capitalization reached $2.8 trillion, its highest since the end of January 2026. Shares of crypto-related companies also rose, including Coinbase Global, Circle, and Strategy.

Bitcoin options trading showed a strong preference for calls, indicating bullish sentiment. However, traders were uncertain about the momentum's longevity due to macroeconomic challenges, including oil prices above $100 and high Treasury yields. Bitcoin was still below its January 2026 high of over $97,000 and far from its October 2025 peak.

Retail interest remained lukewarm as AI stocks and other AI-related investments vied for the same speculative capital. The market remained sensitive to Fed officials' remarks, either hawkish or dovish.