Bitcoin climbed above $85,000 on Monday, September 21, reaching its highest level in eight months as the cryptocurrency extended its recent rally.
The world’s largest cryptocurrency rose about 5% in early afternoon trading in London to $85,128, building on a gain of nearly 6% the previous week.
Bitcoin has now risen more than 30% since August 19 and remains above the $80,000 level, which had previously proved difficult to sustain.
The latest gains came despite the failure to pass the Clarity Act and the Federal Reserve’s quarter-point interest-rate increase.
Chris Beauchamp, chief market analyst at IG, said cryptocurrency prices were rising broadly, supported by recent investment inflows.
“Cryptocurrencies are advancing in a group this morning, a move given strength by recent inflows and one likely to attract even more of those vital funds,” Beauchamp said.
“Perhaps investors are realizing that they can live in a world of higher U.S. rates, though falling oil prices certainly help too.” Naeem Aslam, an analyst at Zaye Capital Markets, attributed Bitcoin’s advance to stronger exchange-traded fund inflows, positive regulatory developments and investors closing previous bets against the cryptocurrency.
The rally also extended to cryptocurrency-related stocks, with Coinbase Global and Robinhood Markets rising 5.5% and 5.3%, respectively, in premarket trading.
Yusuf Fakhro, a partner at Bahrain-based platform ARP Digital, said the latest rally appeared to be supported by sustained demand for US spot Bitcoin exchange-traded funds.
“This leg looks different,” Fakhro said. “It is being led by steady inflows into U.S. spot Bitcoin ETFs, which came back strongly after the Fed decision and recovered most of the outflows seen around it.
“That demand has been enough to absorb the coins long-term holders are selling into strength, which is exactly what you want to see.”
Investors are also looking ahead to a planned meeting between US President Donald Trump and Chinese President Xi Jinping on Thursday, September 24.
A truce in the tariff dispute between the two countries is due to expire on November 10. Developments that ease trade tensions could influence investor sentiment toward risk-sensitive assets, including cryptocurrencies.
