Bitcoin (BTC) has hit the $85,000 price level for the first time in January 2026, nearly 8 months ago. CoinGecko data shows that BTC has rallied by 5.3% in the last 24 hours and more than 10% in the last month. Let’s discuss why BTC is up today and if the asset can climb to $90,000 next.
Why Is Bitcoin Up Today?
BTC’s latest price rally is surprising given the overarching bearish market environment. Firstly, the US Senate voted against the highly anticipated pro-cryptocurrency CLARITY Act. The failure of the CLARITY Act was quickly followed by a hawkish stance by the Federal Reserve. The Federal Reserve decided to raise interest rates by 25 basis points after its recent FOMC (Federal Open Market Committee) meeting. Higher rates often leads to less risky investments. Bitcoin (BTC) and the larger cryptocurrency market is among the most risky assets in the financial markets.
Another bearish development is President Trump threatening to escalate the war with Iran if it does not accept a deal with the US. Increased tensions in the Middle East could lead to another surge in oil prices. Higher oil prices could lead to interest rates staying higher for longer. Such a development would not go well with Bitcoin (BTC).
Despite the bearish developments, Bitcoin (BTC) seems to be holding on rather strongly. The asset seems to be defying the larger trend. It is possible that BTC is reacting to a swing in oil prices. Moreover, the asset has seen a surge in ETF inflows over the last few days. Farside Investors data shows that BlackRock’s IBIT BTC ETF alone purchased more than $280 million worth of BTC in the last two days.
Also Read: Morgan Stanley Starts Heavily Accumulating Bitcoin (BTC)
While the rally is commendable, there is a very high chance that we will see a correction soon. The economy is still far from recovered and bearish forces remain strong. BTC may some positive price action, but we could see a retracement very soon.