Bitcoin hits eight-month high as risk appetite returns

Bitcoin surged to an eight-month high on Monday, reaching as high as $85,222 in early New York trade, marking its first appearance above the $85,000 mark in eight months. Falling oil prices and expectations of a positive summit between US President Donald Trump and China's Xi Jinping contributed to the surge in stocks, bonds, and cryptocurrencies.

As of the latest data, Bitcoin was trading at $84,583, with market charts favoring bullish sentiment, though $85,500 remains a key near-term barrier. The resurgence in Bitcoin's price began late last week, despite the failure of the Clarity Act, which aimed to provide clearer regulation for the industry. The Federal Reserve's recent first rate hike in over three years and the US Securities and Exchange Commission's approval for digital securities trading also bolstered market sentiment.

This positive momentum has propelled the total value of the crypto market to $2.8 trillion, the highest level since early January. Open interest calls on Deribit reached 272,000 contracts, compared to approximately 154,000 put options. Portfolio manager Pratik Kala noted that investors are shifting from downside protection to seeking opportunities for gains.

Despite the recent uptick, concerns remain as crude oil prices hover above $100 a barrel and US Treasury yields are elevated. Bitcoin's price remains below its 2026 peak of over $97,000. Retail investor interest has been cautious, with speculative funds favoring AI-linked stocks over cryptocurrencies. Notably, two Abu Dhabi funds, Mubadala and Al Warda Investments, together hold over $1 billion in BlackRock's spot bitcoin ETF, IBIT.