Bitcoin surpassed the $86,000 mark for the first time in eight months on September 21, local time.
According to CoinMetrics, Bitcoin traded at $85,863.40, marking a 5.8% increase. At one point, it reached $86,349, setting a new high since late January.
While Bitcoin remains down compared to the beginning of the year, its recent upward trend is significant. It has risen over 8% in the past week and 34% in the last three months. However, it is still considerably lower than its all-time high of $126,000 recorded last October.
The recent surge has led to speculation that the prolonged downturn in the cryptocurrency market, known as the 'crypto winter,' may be coming to an end.
Matt Hogan, Chief Investment Officer of Bitwise, stated in an interview with CNBC, "I believe the 'crypto winter' is over. We are now in a 'crypto spring,' and the flowers are blooming." He added, "I expect this to be one of the strongest and longest bull markets in cryptocurrency history."
Hogan noted that while cryptocurrency prices have been sluggish, the market's fundamentals have improved. He cited an increase in blockchain transactions and the participation of major financial firms like BlackRock in the cryptocurrency market.
Analysts suggest that changes in the regulatory environment for cryptocurrencies in the U.S. have also impacted the market. Last week, a key piece of legislation known as the Clarity Act, which aims to establish a regulatory framework for the U.S. cryptocurrency market and delineate the oversight powers of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), failed to pass in Congress.
Hogan posited that the delay in legislation could positively affect the cryptocurrency market, allowing the SEC and CFTC to develop their own regulatory frameworks.
Additionally, there are indications that investors are shifting funds from artificial intelligence (AI) stocks to cryptocurrencies, which could be beneficial for the market.
Investment bank BTIG analysts reported on September 21 that if Bitcoin maintains a support level of $75,000, its upward trend could continue. They specifically noted that if it breaks through $82,000, it could rise to $90,000.
Meanwhile, market attention is focused on the upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping, scheduled for September 24. With a truce in the U.S.-China trade war set to expire on November 10, any progress made during this summit to ease trade tensions could positively influence investor sentiment towards risk assets, including cryptocurrencies.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.