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Bitcoin Climbs Above $85,000 as ETF Inflows and Short Covering Lift Market

Bitcoin Climbs Above $85,000 as ETF Inflows and Short Covering Lift Market

Bitcoin’s recovery gathers pace as institutional demand and improving risk appetite support the latest rally.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 22 September 2026 12:31 IST

Bitcoin Climbs Above $85,000 as ETF Inflows and Short Covering Lift Market

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Crypto markets gain momentum as institutional demand strengthens

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Highlights

Spot Bitcoin ETFs record strong inflows on September 18 and 21
Short positions account for most of the recent crypto liquidations
Bitcoin could test the $88,000-$90,000 range next

Bitcoin traded near Rs. 81.7 lakh on Tuesday as the cryptocurrency market extended its recovery on the back of stronger institutional demand, renewed spot Bitcoin ETF inflows and short covering. Ethereum (ETH) was trading near Rs. 2.6 lakh, while major altcoins also posted gains. Market participants said improving risk appetite, easing macro pressure and stronger ETF flows have supported Bitcoin's latest move higher. According to CoinGecko data, Bitcoin traded near $85,300 (roughly Rs. 81.7 lakh), and Ethereum traded near $2,700 (roughly Rs. 2.6 lakh).

The world's largest cryptocurrency fell 4.2 percent in the last 24 hours, as per the Gadgets 360 price tracker. ETF inflows reached $433 million (roughly Rs. 4,147 crore) on September 18 and $617.6 million (roughly Rs. 5,915 crore) on September 21, while more than $746 million (roughly Rs. 7,145 crore) in crypto positions were liquidated over 24 hours.

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Major Altcoins Traded With Positive Momentum on Tuesday

Binance Coin (BNB) was priced around $786 (roughly Rs. 75,300), while Solana (SOL) traded near $116 (roughly Rs. 11,100). XRP hovered around $1.51 (roughly Rs. 145), while Dogecoin (DOGE) traded near $0.09 (roughly Rs. 9.6).

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Bitcoin Momentum Builds on Stronger Market Demand

Assessing Bitcoin's latest move higher, Vikram Subburaj, CEO, Giottus.com, said, “The rally is being supported by a sharp improvement in US spot Bitcoin ETF flows [...] The broader macro backdrop has also become slightly more supportive. The US 10-year yield has moved below 5 percent, while Brent crude is around $100.57 (roughly Rs. 9,633). However, markets are still pricing roughly a 55 percent probability of another Fed rate hike in October [...] For investors, the focus should now be on whether Bitcoin can hold the $82,000-$82,800 (roughly Rs. 78.5 lakh-Rs. 79.3 lakh) zone as support. It would be prudent to avoid chasing the sharp rally and use staggered entries with limited leverage.”

Highlighting the impact of renewed ETF demand and short covering, Prateek Gupta, Head of Business, Mudrex, said, “Bitcoin surged above $87,000 (roughly Rs. 83.33 lakh) on Monday, reaching an eight-month high as a broad risk-on move lifted equities and crypto after the Fed's tone was seen as more dovish than expected [...] The rally was amplified by a short squeeze, with more than $1 billion (roughly Rs. 95,780 crore) in positions liquidated over 24 hours. With this move, Bitcoin is now up about 44 percent this quarter, its strongest quarterly gain since Q4 2024 [...] However, sustained ETF inflows remain important for the rally to continue.”

Pointing to Bitcoin's stronger momentum and the performance gap with Ethereum, Avinash Shekhar, Co-founder and CEO, Pi42, said, “The decisive move beyond the $80,000 (roughly Rs. 76.62 lakh) resistance has strengthened the near-term outlook, although profit-booking could lead to intermittent volatility. Bitcoin may now test the $88,000-$90,000 (roughly Rs. 84.29 lakh-Rs. 86.20 lakh) zone, while $82,000 (roughly Rs. 78.54 lakh) is emerging as an important support level [...] Ethereum also advanced to around $2,730 (roughly Rs. 2.61 lakh) but continued to underperform Bitcoin, indicating that the rally remains largely concentrated in the market leader.”

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Overall, analysts said Bitcoin's latest recovery is being driven by stronger spot ETF inflows, institutional buying and short covering, alongside a somewhat more supportive macro backdrop. ETF inflows have helped improve demand, as more than $746 million (roughly Rs. 7,145 crore) in liquidations amplified the move. At the same time, easing oil prices and a US 10-year yield below 5 percent have supported risk appetite, although the possibility of another Fed rate hike remains.

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Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Bitcoin, Ethereum, BTC, Crypto markets, Crypto Rally

Rahul Dhingra

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Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More