Bitcoin pushed above the $85,000 level for the first time in eight months on Monday, reaching its highest level since January, as falling oil prices and retreating Treasury yields restored risk appetite across financial markets. BTC hit $84,984 on the day before a minor correction left it trading near $85,736 on Tuesday, with the intraday range spanning $81,724 to $87,330.
The macro trigger was a sharp pullback in energy prices. Brent crude, which had topped $109 per barrel the previous week, fell below $100 on signs of potential de-escalation tied to Iran, while WTI dropped 2.5% to $97.78. The 10-year Treasury yield eased to roughly 4.96% from a recent high of 5.04%. That chain matters for Bitcoin because lower yields reduce the opportunity cost of holding non-yielding assets and encourage demand for higher-beta positions.
The risk-on move was broad-based: the S&P 500 rose 1.5% and the Nasdaq Composite gained 2.1%. In crypto, short liquidations reached $647.9 million, total open interest increased 7.59% to $156 billion, and trading volume jumped 39% to $224 billion. Bitcoin's market capitalization was around $1.7 trillion after the move. Reported spot Bitcoin ETF inflows and short covering may have amplified the advance, although verified figures were not available.
Still, traders are debating whether this is a durable macro turn or a one-day reprieve from an inflation scare. Oil and yields remain historically elevated even after the pullback, and the sustainability of the rally depends on whether those trends continue through the week.
