Bitcoin hits $85,248, highest since January, as oil prices fall

Bitcoin reached $85,248 on Monday, its highest level since Jan. 29, as it started the week near an eight-month high. TradingView data showed BTC/USD advancing after a weekly close of $81,120 on Sunday, the highest weekly close since the week of May 4. Cross-crypto liquidations exceeded $600 million over 24 hours, according to CoinGlass. Bitcoin moved above the prior local high of $82,950 from May, a level that trader and analyst Rekt Capital had described as a "moment of truth." Rekt Capital warned that a bearish divergence on the daily relative strength index indicated weaker underlying momentum and increased the risk of a sudden reversal. The daily RSI was approaching the 70 level commonly associated with overbought conditions. Bitcoin had also reclaimed its 50-week exponential moving average at $77,769, which had previously been identified as a prerequisite for continued upside. Bitcoin corporate treasuries returned to aggregate profit, with holdings carrying a cost basis of about $80,500. The price was approaching the $85,638 cost basis for investors in US spot Bitcoin exchange-traded funds, according to Glassnode. US spot Bitcoin ETFs recorded $435 million in net inflows on Friday, their largest daily total since Sept. 3, according to Farside Investors. US regulators, including the Securities and Exchange Commission and Commodity Futures Trading Commission, advanced crypto-related policies on Thursday despite the CLARITY Act failing to advance in the Senate the previous week. Crypto ETFs recorded $159 million in net inflows that day. Fidelity Investments' Wise Origin Bitcoin Fund accounted for $310 million of Friday's total inflows, while BlackRock's iShares Bitcoin Trust did not account for most of the activity. CryptoQuant said ETF flows had shifted from IBIT leadership toward FBTC, comparing the funds' netflows on September 3 and September 18. WTI crude oil traded below $94 per barrel on Monday after rising above $100 the previous week. The move came amid hopes for renewed diplomatic efforts between the United States and Iran. Majed Al-Ansari, a spokesperson for Qatar's Foreign Ministry, said attempts to restart US-Iran talks had continued for the past couple of weeks and that the sides were trying to bridge differences. Donald Trump reportedly said he was considering several options in the Iran conflict and would probably be open to meeting Iranian President Masoud Pezeshkian at the United Nations General Assembly this week. Markets expected the US Federal Reserve to raise its benchmark rate by another 0.25% at its October meeting, with the probability at 53% on Monday, according to the CME Group's FedWatch Tool. The CME tool also showed a nearly 40% chance of a third 0.25% increase before the end of the year. Federal Reserve Bank of Richmond President Thomas Barkin was scheduled to speak to the CFA Society Baltimore on Tuesday about the economic landscape, monetary policy developments and his economic outlook. The US 30-year Treasury yield fell to 5.301% on Monday from a high of 5.425% recorded on Sept. 11, which was its highest level since June 2004. Jim Iuorio of JI Financial Strategies argued in a Sept. 16 report for CME that bond-market interventions could provide a liquidity tailwind for Bitcoin and crypto markets. Mosaic Asset Company said strong economic growth could support the S&P 500's earnings outlook and allow the equity rally to continue if the Federal Reserve raised rates at a measured pace that did not undermine growth expectations.