Bitcoin jumped over 2% to trade around $86,150 as the cryptocurrency market launched into October with upward momentum. The price movement pushed BTC above the key $85,000 level, with the broader crypto market gaining 1.9% over the same period.
The rally was catalyzed by multiple factors. Citi raised its 12-month Bitcoin price target from $82,000 to $113,000, citing stronger crypto activity, supportive macroeconomic conditions, and renewed exchange-traded fund demand. U.S. spot Bitcoin ETFs recorded $102.7 million in net inflows on October 1, reversing the previous day's $148.7 million outflow.
Federal Reserve commentary also supported risk assets. New York Fed President John Williams stated there was "no need for urgency" to raise interest rates again, causing October rate hike odds to fall to around 44% according to CME FedWatch data.
Historically, October has favored Bitcoin, with the cryptocurrency closing higher in 10 of the past 13 Octobers and averaging gains of 18.71% during the month. The surge triggered significant market liquidations, with 77,543 traders liquidated in the past 24 hours for a total of $324.68 million.
Bitcoin must clear the recent swing high of $86,837.30 to confirm sustained upside momentum. Breaking above this level could open the way toward $87,000 and higher targets. On the downside, losing $85,000 could send Bitcoin toward the $83,000 area.
