Bitcoin surges past $87,000 to 8-month high; 5 factors behind the crypto rally

Bitcoin extended its sharp rebound on Tuesday, briefly climbing above $87,000 over the past 24 hours before paring some gains. The world’s largest cryptocurrency was trading at $85,606, up around 4.5%, at the time of reporting, after touching an intraday high of $87,363 - its strongest level since late January this year.

The latest rally marks a significant recovery from the weakness seen earlier this month, when Bitcoin slipped towards $75,000. The cryptocurrency has gained more than 8% over the past week and around 34% over the last three months, although it remains in negative territory for the year.

Bitcoin’s rebound has also pushed it further away from the correction that followed its record high of more than $126,000 in October 2025. The rally has coincided with improving risk appetite across global markets, renewed institutional demand through spot exchange-traded funds (ETFs), short covering and a breakout above key technical levels.

The broader crypto market also joined the rally, with global market capitalisation rising to around $2.92 trillion, up nearly 5% over the past 24 hours. Among major tokens, XRP led gains with a 7.1% jump to $1.52, followed by Solana at 5% to $116.67. Ethereum, the second most valued crypto asset, rose 3% to $2,739, while BNB gained 1.6% to $790.