Bitcoin climbed approximately 4.3% over the past 24 hours, breaking through the $85,000 threshold. The cryptocurrency is currently trading around $85,700, following several days of significant gains.
A major driver behind the surge has been capital inflows into exchange-traded funds (ETFs) that track Bitcoin. These funds allow investors to gain exposure to the cryptocurrency through traditional investment markets without purchasing the digital currency directly.
Institutional investors, including major financial institutions, have ramped up their Bitcoin purchases. At the same time, overall market sentiment has improved, with investors showing greater willingness to take on risk.
The sharp price increase also triggered the liquidation of short positions held by traders who had bet on a Bitcoin decline. According to data cited in the report, approximately $648 million in such positions were wiped out, adding upward pressure on the price.
Bitcoin has now gained roughly 10% over the past week and approximately 44% in the current quarter. However, analysts note that volatility remains high, and sharp corrections could occur if the current pace of new demand does not continue.
According to market analysts, the $82,000 level is an important support zone, while $89,500 is viewed as a resistance level, a price point where Bitcoin may face difficulty continuing its upward climb.
