What drove Bitcoin toward $87,000, and can the rally last?

Bitcoin climbed to $86,913 on Oct. 2, its highest level since Sept. 23, after buyers cleared a concentration of sell orders near $85,000. Short liquidations and renewed ETF buying added momentum, while softer inflation and shifting expectations for Federal Reserve policy supported risk appetite. But the rally’s staying power remains uncertain: fund flows have been mixed, Treasury yields are elevated, and October’s seasonal reputation proved no guarantee in 2025.1381719

Why Bitcoin moved toward $87,000

A sell wall around $85,000 had been an obstacle to further gains. As those offers were cleared or pulled, Bitcoin moved through the level and out of the $82,500–$85,700 range it had traded in over the previous week, according to market reporting.3

Short liquidations likely accelerated the move. When traders betting on falling prices are forced to close their positions, their buy orders can add upward pressure. On Oct. 2, short positions accounted for $244 million of the $333 million in crypto-market liquidations reported over 24 hours.1 That can help explain a fast price jump, but it does not by itself show that longer-term buyers are stepping in.

ETF demand is a support, but the flows have been uneven

U.S. spot Bitcoin ETFs recorded $102.7 million in net inflows on Oct. 1. That followed a nine-session run that brought in about $3.1 billion, which ended with $148.7 million in outflows on Sept. 30.11848 September as a whole still saw $2.65 billion in net inflows, according to reporting on the fund data.48

The figures point to renewed demand, but not a one-way flow of money. One positive day after a sizable outflow does not settle whether buyers will keep supporting Bitcoin. Sustained spot demand would make the rally’s foundation firmer than a move driven mainly by short sellers closing positions.

Inflation and Fed expectations helped sentiment, while yields remain a risk

August core PCE inflation came in at 3.0% year over year, below the 3.3% expectation cited in market coverage. The softer reading eased expectations for another Federal Reserve rate increase in October, and weaker employment data also shifted rate expectations.1721 A less restrictive expected rate path can support demand for riskier assets, but it is not a guarantee of further Bitcoin gains.

The counterweight is the bond market: Treasury yields remained elevated, and Bitcoin rose even as U.S. government bonds sold off.11922 If inflation or Fed expectations shift again—or yields remain high—the macro support for risk assets could weaken. The available reporting reflects changing market expectations, not a settled Fed decision.1921

Why “Uptober” is not a forecast

The October 2025 sell-off is a recent warning against treating seasonality as a promise. A sharp liquidation event followed a tariff shock, and Bitcoin ended the month lower, ending a seven-year streak of October gains.3144 That history does not predict what Bitcoin will do this month; it shows how quickly leverage and an unexpected shock can overwhelm a bullish seasonal narrative.

What to watch next

The more useful tests are whether spot ETF inflows continue and whether Bitcoin can hold the area it broke through. If price strength depends mostly on traders closing shorts, momentum may fade after those positions are cleared. If fresh buying persists, the rally would have stronger support—but the Oct. 2 move alone cannot establish that it will last.1818

Bottom line: Bitcoin’s push toward $87,000 had several supports, including the cleared sell wall, short covering, ETF inflows and lower rate-hike expectations. The evidence is mixed, so the rally should be treated as a promising move rather than a confirmed, durable breakout.