CryptoSlate
Bitcoin retook $86,000 on Oct. 2 as US spot Bitcoin ETFs returned to net inflows and liquidations of bearish futures positions helped drive the advance. BTC traded at $86,325.44 at 08:40 UTC, up 3.67% over 24 hours. The move followed a Sept. 30 rebound above $85,000 that faded below $84,000 after US inflation data.
Why it matters
US spot Bitcoin ETFs took in a net $102.7 million on Oct. 1 after outflows in the previous session, according to Farside Investors. BlackRock's IBIT attracted money, while Fidelity's FBTC and several other funds saw redemptions. The positive total shows buying outweighed withdrawals, though flows across funds remain mixed.
Short covering offers another explanation for the rally's speed. CoinGlass reported about $135.47 million in liquidated Bitcoin futures positions over 24 hours, while a CoinNess estimate put shorts at 91.13% of futures liquidations. Closing leveraged short positions can add buying pressure as prices rise. The flow and liquidation figures cover different windows, so they do not establish which came first.
Market impact
Bitcoin's advance was part of a broader rise in major cryptocurrencies, including Ether, XRP and Solana. The next test is the September US jobs report, scheduled for 12:30 UTC on Oct. 2. Holding above $86,000 alongside further ETF inflows would strengthen the case for sustained demand; a reversal would echo the earlier failed rebound.
Inflation remains a constraint. August core PCE inflation was 3.0% year over year, and the ISM manufacturing prices index rose to 77.9 in September from 71.1. Fed Vice Chair Philip Jefferson said assessing future policy adjustments could take more time while also flagging upside inflation risks.
Frequently asked questions
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How much did US spot Bitcoin ETFs take in before the rally?
The funds recorded $102.7 million in net inflows on Oct. 1, reversing outflows from the previous session.
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Were inflows positive across all Bitcoin ETF products?
No. BlackRock's IBIT attracted money, while Fidelity's FBTC and several other funds recorded redemptions.
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How could short liquidations have accelerated Bitcoin's rise?
Closing leveraged bearish positions can add buying pressure as prices rise. A CoinNess estimate put shorts at 91.13% of Bitcoin futures liquidations over 24 hours.
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What is the next macroeconomic test for Bitcoin's recovery?
The September US jobs report is scheduled for 12:30 UTC on Oct. 2. It follows an earlier rebound above $85,000 that faded after US inflation data.
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Did other major cryptocurrencies rise alongside Bitcoin?
Yes. Ether, XRP and Solana also advanced, placing Bitcoin's recovery within a broader rise in major cryptocurrencies.
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