Bitcoin Holds Near $87,000 as Crypto Market Rebounds, While Zcash Leads Gains

Bitcoin traded near the $87,000 level this week as the cryptocurrency market extended its recent recovery, with investors watching developments in U.S. digital-asset policy and a renewed move higher across several major tokens.

Bitcoin was changing hands around $86,900 on Wednesday, according to market data cited in recent reports, after briefly moving above $87,000 earlier in the week. The move put BTC at levels not seen since late January and extended a recovery that has gathered pace since August.

The broader market was also showing strength. Zcash emerged as the biggest mover among major cryptocurrencies, gaining roughly 10% to trade above $1,600. XRP advanced around 6%, while Dogecoin and Hyperliquid also recorded gains. Ethereum, BNB and Solana posted smaller increases during the same period.

Bitcoin’s September Recovery

Bitcoin’s latest move follows a strong recovery through September. Barron’s reported that BTC had gained about 8.8% during the month as of September 22, following a roughly 25% increase in August. The cryptocurrency reached an intraday high of approximately $87,359 on September 22, its highest level since January 29.

The recovery has come despite several developments that could have weighed on digital assets.

The U.S. Federal Reserve recently raised interest rates, while the cryptocurrency-focused CLARITY Act failed to advance in the Senate. Bitcoin nevertheless continued higher, supported by stronger spot Bitcoin ETF flows, improved sentiment around digital-asset regulation and the unwinding of short positions, according to market analysts cited by The Wall Street Journal.

The market has also benefited from broader macroeconomic conditions. Falling oil prices and lower Treasury yields have helped improve appetite for risk assets, providing an additional backdrop for the latest cryptocurrency rebound.

Zcash Becomes the Standout Performer

While Bitcoin remains the focus of the broader market, Zcash has attracted considerable attention during the latest move.

ZEC climbed approximately 10% to above $1,600 on Wednesday, significantly outperforming Bitcoin and most other large-cap cryptocurrencies during the session. The privacy-focused cryptocurrency has already experienced a substantial rally in recent months, making its latest move one of the more notable developments in the altcoin market.

The strength has also extended beyond Zcash. XRP gained around 6%, while Hyperliquid and Dogecoin each added approximately 4% during the reported session. The gains suggest that the recent recovery is not limited to Bitcoin alone, although performance across the market remains uneven.

Washington Remains a Key Focus for Crypto Markets

Investors are also keeping a close watch on developments in Washington.

A bill aimed at establishing a Strategic Bitcoin Reserve has moved through the U.S. House Financial Services Committee, providing another potential policy development for the market to monitor. The proposal would seek to establish a more permanent framework around the government’s Bitcoin holdings.

At the same time, the U.S. Securities and Exchange Commission has taken steps aimed at making certain forms of tokenized securities trading easier to develop. Those developments are contributing to growing interest in the intersection between traditional financial markets and blockchain infrastructure.

The regulatory picture remains fluid, however, with different initiatives progressing at different speeds. The failure of the CLARITY Act to advance in the Senate is an example of the uncertainty that continues to surround U.S. crypto legislation.

Bitcoin Faces a Test After the Rally

Despite the recent strength, Bitcoin’s move has not been one-way.

After trading near $87,000, BTC briefly fell below $84,000 during Wednesday’s U.S. trading session. Cointelegraph reported that the decline triggered roughly $280 million in long liquidations over a four-hour period, highlighting the amount of leverage that has accumulated during the recent advance.

That volatility means traders are now watching whether Bitcoin can maintain the higher levels established during its September recovery.

For the broader market, the next phase could depend on a combination of factors: continued institutional demand, developments in U.S. regulation, macroeconomic conditions and whether traders continue to add leverage after the recent rally.

For now, Bitcoin remains close to the $87,000 area, while the sharp performance of assets such as Zcash shows that the current market recovery is producing significant opportunities — and volatility — beyond the largest cryptocurrency.