Bitcoin surged to $87,400 on Monday, its highest level since late January, despite a week of setbacks including a failed Senate vote and a Fed rate hike. Strong ETF inflows, renewed corporate buying and a CFTC rulemaking filing drove the bounce, and technical analysts now point to a possible run toward $94,000.
Bitcoin skyrocketed by more than $7,000 from bottom to top on Monday, peaking at $87,400 on Bitstamp — its highest price since late January. The move came despite a run of bad news the prior week that would normally have weighed on risk assets.
A rough week turned into a rally
The US Senate had failed to advance the CLARITY Act, the crypto market structure bill, and a day later the Federal Reserve hiked interest rates for the first time in over three years, sending bitcoin to a three-week low of $75,000. The Bank of Japan followed the Fed's move, and escalating tension in the Middle East along with renewed fighting between Ukraine and Russia pushed bitcoin into a brief correction to $80,300 over the weekend.
Bitcoin then reversed. Data from SoSoValue showed $998.95 million entering spot bitcoin ETFs on Monday alone, the best single-day performance for the funds in nearly a year. A CFTC crypto market framework submission for White House review became public on Thursday, signaling the agency intends to move ahead using its existing authority rather than waiting for Congress to act on the CLARITY Act.
Strategy resumes buying as the breakout triggers short-covering
Bitcoin also broke out of a month-long trading range, and the move triggered a sharp round of short-covering as bitcoin broke through resistance near $82,000, a level where it had met resistance in May and again in August and September. Strategy also resumed purchases after pausing for several weeks, buying 950 BTC for about $75.7 million. The firm now holds 846,000 BTC bought for $63.8 billion at an average price of $75,400.
A less hawkish than expected Fed dot plot added to the rebound, and gains extended further on falling oil prices and hopes for Middle East de-escalation, alongside a broader positive shift in risk sentiment. The market's sentiment index climbed to 78, its highest reading since July last year, reflecting extreme greed after having stayed in the lower half of the scale since October 2025.
What comes next
Technically, bitcoin has the potential to rise as high as $94,000, though analysts expect it could spend several weeks trading in the $85,000 to $95,000 range before any test of $100,000 by year-end. Traders are now watching upcoming US economic data and Trump's meetings with Gulf leaders at the UN General Assembly, which could determine whether the current momentum extends.
Sources: CryptoPotato, Investinglive, ActionForex
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