Bitcoin climbed back above $86,000 by the morning of Oct. 2, supported by a recovery in demand for US spot Bitcoin ETFs and potential short covering ahead of the US jobs report.
Trading at $86,325.44 at 08:40 UTC, Bitcoin registered a 2.4-hour gain of 3.67%. The upward movement pushed the asset beyond a Sept. 30 rebound that had previously faded below $84,000 following US inflation data. Major cryptocurrencies including Ether, XRP, and Solana also advanced during the period.
ETF Demand and Leverage Dynamics
US spot Bitcoin ETFs recorded net inflows of $102.7 million on Oct. 1, according to Farside Investors data, reversing outflows from the previous session. While BlackRock's IBIT fund attracted capital, several other funds—including Fidelity's FBTC—recorded redemptions.
Derivatives data from CoinGlass showed approximately $70.58 billion in 24-hour Bitcoin futures turnover alongside $6.35 billion in spot turnover. CoinGlass also reported $135.47 million in liquidated Bitcoin futures positions. Data from CoinNess indicated that 91.13% of these liquidations involved short positions, suggesting that forced exits from bearish bets may have accelerated the price advance.
Macroeconomic Tests Ahead
The market recovery follows recent inflation data, with the August PCE report released on Sept. 30 showing core inflation at 0.3% monthly and 3.4% annually. Federal Reserve Vice Chair Philip Jefferson stated on Oct. 1 that assessing future policy adjustments could take time while highlighting upside inflation risks following September's rate increase.
Additionally, the ISM September manufacturing report showed the prices index rising to 77.9. The September US jobs report, scheduled for release at 12:30 UTC on Oct. 2, represents the next macroeconomic test for whether Bitcoin can maintain its position above $86,000.
