Bitcoin Nears $87K on Near-$1B ETF Inflows as XRP Short Squeeze Pushes Price Past $1.60
US spot Bitcoin ETFs pulled in almost $1 billion in a single day, sending BTC to its highest level since January, while XRP surged nearly 7% as leveraged short positions unwound on the CME.
Bitcoin Approaches $87,300 as Institutional Demand Surges
Bitcoin briefly touched approximately $87,300 on Tuesday, its highest level since January 2026, before settling around $85,400 in early US trading. The rally was fueled by a wave of institutional buying: US spot Bitcoin ETFs recorded roughly $999 million in net inflows in a single day, their largest one-day haul since October 2025.
BlackRock's IBIT led the pack with about $381 million in inflows, followed by Ark & 21Shares' ARKB at roughly $289 million and Fidelity's FBTC at close to $239 million. Additional funds from Grayscale, Bitwise, and Morgan Stanley also posted positive flows for the day. Spot Ethereum ETFs joined the trend, pulling in nearly $270 million, their strongest single-day inflow since October 2025.
Analysts pointed to a mix of factors behind the move, including renewed risk appetite, strong spot ETF demand, and short covering after Bitcoin broke decisively above the $82,000 resistance level that had capped the market for weeks. The breakout also triggered a sharp wave of liquidations, with roughly $1.06 billion in crypto positions wiped out over 24 hours, including about $844 million in short bets.
Broader macro tailwinds added to the momentum, with traders citing softer oil prices, easing Treasury yields, and anticipation around an upcoming meeting between US and Chinese leadership as factors shaping risk sentiment across markets.
XRP Jumps Nearly 7% as CME Shorts Unwind
While Bitcoin's rally dominated headlines, XRP outperformed the broader market with a 6.78% gain, pushing the token to $1.62. The move was driven primarily by a short squeeze on the Chicago Mercantile Exchange, where leveraged funds trimmed their net short position by 46.3 million XRP.
The rally carried XRP above the closely watched $1.60 resistance level, prompting a broader rotation into altcoins as traders looked to capitalize on the shift in momentum. Market watchers noted that a continuation of the move would likely depend on XRP holding the $1.52 support zone. Attention now turns to the next CFTC commitment of traders report, due September 25, which should offer a clearer picture of whether short covering has continued into the new week.
What It Means for the Market
Tuesday's moves underscore a broader shift in sentiment across crypto markets, with institutional capital returning to Bitcoin at scale while derivatives positioning drives sharp, fast moves in altcoins like XRP. With spot ETF demand strengthening and leveraged short interest unwinding across multiple assets, traders are watching whether the current momentum can extend through the rest of the week or whether profit-taking emerges near key resistance levels.
