Bitcoin's strongest rally in months has lifted the cryptocurrency market back above $3 trillion, as institutional investors returned to spot exchange-traded funds and traders increased leveraged bets across digital assets. Bitcoin climbed nearly 8% Monday to as high as $87,381, its highest level in eight months, before easing to around $85,000 Tuesday.
The broader cryptocurrency market has added more than $740 billion in value since the U.S. Treasury announced last month that it would increase buybacks of long-dated government bonds, according to CoinGecko data cited by Bloomberg. The rebound took total digital-asset market capitalization above $3 trillion for the first time since January.
Bitcoin remains far below its October 2025 record of more than $126,000, but the speed of its latest advance has brought risk-taking back into the market. The cryptocurrency has gained more than 8% over the past five trading sessions after recovering from weakness surrounding monetary policy and stalled cryptocurrency legislation in Washington.
One sign of the changing appetite for risk is the rapid increase in derivatives trading. Open interest in perpetual cryptocurrency futures has climbed to nearly $160 billion, its highest level since late October 2025, according to CoinGlass data.
Perpetual futures allow investors to make leveraged bets on cryptocurrency prices without the contracts expiring on a predetermined date. Open interest measures contracts that remain outstanding, making its increase an indication that traders are adding positions rather than simply closing existing ones.
Monday's price surge forced traders betting against cryptocurrencies to unwind more than $920 million in bearish positions. Yet overall open interest continued to rise, suggesting new leveraged positions were being established even as the rally liquidated short sellers.
Demand from investors using regulated U.S. products strengthened at the same time. Spot Bitcoin ETFs attracted $999 million in net inflows Monday, their largest one-day intake since Oct. 6, when Bitcoin was trading near its record high.
Three funds accounted for most of the buying:
- BlackRock's iShares Bitcoin Trust: about $381 million
- ARK 21Shares Bitcoin ETF: about $289 million
- Fidelity Wise Origin Bitcoin Fund: roughly $239 million
The inflows marked a sharp change from the withdrawals seen earlier in the previous week. Bitcoin ETFs had begun returning to positive flows late last week before Monday's surge accelerated institutional demand.
Corporate buying also continued. Strategy disclosed Monday that it acquired another 950 Bitcoin for approximately $75.7 million between Sept. 14 and Sept. 20, increasing its total holdings to 846,000 Bitcoin.
The company paid roughly $79,700 per Bitcoin in its latest purchase. Strategy's continued accumulation has made the company one of the most prominent corporate holders of the cryptocurrency and provides another source of large-scale demand outside the ETF market.
