Crypto Market Reclaims $3 Trillion as Bitcoin Taps $87K on Strong ETF Inflows

The cryptocurrency market has moved back above $3 trillion in total value, powered by Bitcoin's surge toward $87,000, renewed institutional buying and short covering. Bitcoin briefly traded around $87,300—its highest level since January—before slipping back to the mid-$85,000 range. The upswing also lifted major altcoins including Ethereum, XRP, Solana and Dogecoin, broadening what started as a Bitcoin-led rebound into a wider rally. Spot Bitcoin ETFs in the U.S. have been the most visible source of fresh demand. On Sept. 21, spot Bitcoin funds recorded about $999 million of net inflows, their strongest one-day haul in nearly a year. BlackRock's IBIT took in roughly $381 million, followed by ARK 21Shares with $289 million and Fidelity with about $239 million. The near-$1 billion intake adds to the recent return of positive ETF flows and supports the view that the advance is not solely driven by derivatives activity. Derivatives positioning has also amplified the move. Roughly $920 million in short positions were reportedly liquidated as prices climbed, forcing bearish traders to buy back exposure. Perpetual-futures open interest rose toward $160 billion, indicating that traders are re-establishing positions rather than stepping away from risk. Similar dynamics have played out in individual tokens: Dogecoin jumped 14% in its own short squeeze, and XRP along with other large-cap altcoins outperformed Bitcoin during parts of the rebound. Macro conditions have provided additional support. A risk-on tone in broader markets has been reinforced by oil prices retreating from recent highs and Treasury yields easing, reducing inflation and financing pressures that weighed on risk assets earlier this month. Bitcoin's rally has unfolded alongside a rebound in U.S. equities, underscoring its tendency to trade with other high-beta assets when liquidity improves. The latest push higher also follows Strategy's purchase of another 950 BTC, adding another layer of institutional demand.