Bitcoin has climbed above $80,000 for the first time in over three months, as stock markets across Asia also approached record highs. On Monday, the original cryptocurrency jumped as much as 2.1% to reach $80,594, marking its highest value since January 31st. Smaller cryptocurrencies, including Ether, also saw gains.
These crypto increases happened while MSCI’s Asian equities index neared its all-time high from February. This surge in Asian stocks followed better-than-expected earnings reports from technology companies last week, which boosted investor confidence.
Markets are currently reacting to mixed news regarding Iran. US President Donald Trump stated that the US would start guiding ships not involved in the conflict through the Strait of Hormuz. However, an AFP report noted that a top Iranian official warned Tehran would view any US interference in the Strait as breaking the ceasefire.
Bitcoin hit a record high of just over $126,000 last October. After that, it experienced a few months of decline, dropping to around $60,000 in February. Since then, the digital currency has slowly recovered, partly due to more interest from large financial institutions. For example, US Bitcoin exchange-traded funds (ETFs) saw a net inflow of $630 million on Friday, according to data from Bloomberg.
Sean McNulty, who leads Asia-Pacific derivatives trading at FalconX, mentioned that activity in the derivatives market suggests strong belief among institutions. They expect Bitcoin to reach $85,000 by the middle of the month.
Optimism about a potential US deal on a key rule for stablecoins has also lifted spirits among traders. This deal could help new crypto laws move forward in the Senate, according to Richard Galvin, executive chairman at crypto investment firm DACM. He added that while it’s “early days,” breaking past $80,000 “has been a big psychological barrier.” By 7 a.m. in London on Monday, Bitcoin had given back some of its gains but still traded just above $80,000.
Caroline Mauron, co-founder of Orbit Markets, believes that if Bitcoin can decisively stay above $80,000, it would create “further positive momentum to the asset class.” This suggests that the current surge could lead to more growth for cryptocurrencies.
