Bitcoin held close to the $87,000 level on Wednesday, extending its recent recovery as institutional inflows into spot Bitcoin ETFs strengthened and investors looked ahead to a high-profile meeting between US President Donald Trump and Chinese President Xi Jinping.
Bitcoin traded around $86,534 in early US hours after briefly moving above $87,000, according to Investing.com. The move left the world’s largest cryptocurrency near its strongest levels in roughly eight months.
Bitcoin ETF Inflows Jump Sharply
One of the biggest drivers behind the latest Bitcoin rebound has been renewed demand for US spot Bitcoin ETFs.
Investing.com, citing SoSoValue data, reported that spot Bitcoin ETFs attracted about $1.71 billion in inflows so far this week, marking their strongest weekly performance since late August. Monday alone reportedly brought in nearly $1 billion, the largest single-day inflow of the year.
The rebound in ETF demand suggests institutional investors are returning to Bitcoin after a weaker period earlier in the month.
Strategy Resumes Bitcoin Purchases
Corporate demand is also supporting market sentiment.
Strategy disclosed that it acquired 950 Bitcoin for $75.7 million, bringing its holdings back to 846,000 BTC. The purchase was announced on September 21 and marked the company’s latest move to expand its large Bitcoin treasury.
That disclosure helped reinforce the market narrative that both institutional funds and major corporate holders are stepping back into Bitcoin.
SEC Tokenization Move Boosts Crypto Sentiment
Crypto markets also received support from a recent regulatory development in the United States.
On September 17, the US Securities and Exchange Commission approved a temporary Innovation Exemption allowing certain permissioned venues to facilitate trading in tokenized National Market System stocks using blockchain infrastructure.
The exemption does not directly regulate Bitcoin, but it signals greater willingness from US regulators to allow blockchain technology to integrate with traditional capital markets.
That has helped improve sentiment across the broader digital-asset sector.
Trump-Xi Summit Comes Into Focus
Investors are also watching the upcoming meeting between Trump and Xi.
Reuters reported that the summit is expected to focus heavily on trade, artificial intelligence, technology restrictions and broader US-China relations. The meeting is scheduled during Xi’s visit to Washington this week.
The summit does not directly concern Bitcoin, but any major shift in trade policy or risk sentiment could affect global markets, including crypto.
Bitcoin often reacts strongly when broader risk appetite changes sharply.
Altcoins Also Move Higher
The broader crypto market remained positive.
Investing.com reported that Ether rose about 1.1% to $2,760, while XRP jumped roughly 6.4%. Solana gained around 1.9%, Cardano rallied 5.7%, and BNB advanced modestly.
The stronger performance in some altcoins suggests capital is rotating beyond Bitcoin as investors grow more comfortable with risk.
Why Bitcoin Is Holding Up
Bitcoin currently has several supportive factors working at the same time:
strong spot ETF inflows
renewed buying from Strategy
improving regulatory sentiment in the US
broader strength in risk assets
expectations around the Trump-Xi summit
That combination has helped Bitcoin remain resilient near the $87,000 area.
What Traders Should Watch Next
The first key signal is whether ETF inflows continue.
If institutional demand remains strong, Bitcoin could continue testing its recent highs. A sharp slowdown in flows, however, could weaken momentum.
The Trump-Xi summit is another potential volatility trigger, especially if trade or technology tensions worsen unexpectedly. Reuters has reported that AI, trade, Taiwan and geopolitical issues are all likely to remain central to discussions.
For now, Bitcoin remains supported by improving capital flows, but traders should expect volatility as macroeconomic and geopolitical headlines develop.