Bitcoin and Ethereum Trade Near 8-Month Highs: Assessing the Crypto Recovery

Bitcoin (BTC-USD) opened at $86,195.28 on Wednesday, Sept. 23, flat with Tuesday's opening price, and ether (ETH-USD) opened at $2,753.25, down 0.8%. Both prices were again near their highest levels in eight months, Yahoo Finance reported. By 7:26 a.m. ET, bitcoin had eased to $85,600.03 and ether to $2,725.32.

The flat open followed a sharp run. Bitcoin rose more than 5% on Friday, Sept. 18, and another 6% on Monday, Sept. 21, carrying it above $86,000. That move has some analysts arguing that the "crypto winter," the industry's term for a long bear market in digital assets, has ended.

What is driving the rally

Nicolai Søndergaard, a senior research analyst at blockchain analytics firm Nansen, described the move as "a combination of renewed ETF demand and a large short squeeze." The two forces work differently. ETF demand brings new buyers through exchange-traded funds that hold bitcoin directly, which let investors get exposure through an ordinary brokerage account. A short squeeze happens when traders who bet on falling prices are forced to buy bitcoin back as it rises, and that buying pushes the price higher still.

The distinction matters for how long the rally can last. Fund inflows reflect new money choosing to hold the asset. Short covering ends once the bearish positions have been closed, so a rally driven mostly by it can lose speed quickly. Søndergaard's comment points to both being at work, without saying which was larger.

What analysts are saying

Sean Farrell, head of digital assets at Fundstrat, told Yahoo Finance on Monday that "the BTC breakout is credible." He added: "I think the crypto winter is over, although that does not necessarily mean the path higher will be linear."

Ed Engel, an analyst at Compass Point, went further in a Tuesday note: "We believe crypto is in the early innings of a new bull market and we see few signs of overheating."

Neither analyst gave a price target in the remarks cited.

How far prices are from their records

The eight-month highs still sit well below the records both tokens set in 2025. Bitcoin's all-time high was $126,198.07 on Oct. 6, 2025, so Wednesday's open was about 32% below that peak. Ether's record was $4,953.73 on Aug. 24, 2025, and its Wednesday open was about 44% below it.

That gap also shows ether lagging bitcoin. Ether opened lower on Wednesday while bitcoin was flat, and it remains further from its own peak. The two largest tokens usually move in the same direction, so the gap between them is one measure of how broad the rebound is across digital assets.

ETF flows and the Trump-Xi meeting

The prices opened as President Trump prepared to host Chinese President Xi Jinping in Washington that week. Yahoo Finance noted the timing but did not tie the meeting to crypto prices.

Other signals to follow:

• Flows into U.S. spot bitcoin and ether ETFs, which would show whether the "renewed ETF demand" Søndergaard cited continues.
• Whether bitcoin holds above $86,000 once short covering runs its course. Farrell's own caveat was that the path higher may not be linear.
• Whether ether closes the gap with bitcoin, which would indicate the recovery is spreading beyond the largest token.