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Buying amid falling oil prices and anticipation of US-China summit... AI investment funds also expected to shift to cryptocurrency
Bitcoin, the top cryptocurrency by market capitalization, has surpassed the $85,000 mark for the first time since late January.
According to US cryptocurrency exchange Coinbase on the 21st (local time), the price of one Bitcoin recorded $85,895 as of 1:30 PM ET, an increase of approximately 5.75% from 24 hours earlier.
This marks the recovery of the $85,000 level in approximately eight months since it recorded $84,506 on January 29.
Bitcoin has risen more than 7% in the past 5 days, and its 3-month increase rate is approximately 35%.
Bitcoin's price once plummeted on the 15th due to the failure of the 'Clarity Act' in the US Senate and the Federal Reserve's (Fed) interest rate hike, but it subsequently absorbed these negative factors and continued its upward trend.
This upward trend is attributed to falling international oil prices and optimism in the asset market ahead of the summit between US President Donald Trump and Chinese President Xi Jinping.
Ethereum, the second-largest cryptocurrency by market capitalization, also recorded $2,750, up 4.55% from 24 hours earlier.
Alex Kuptsikevich, senior analyst at cryptocurrency analysis firm 'FxPro', told Bloomberg that "the total cryptocurrency market capitalization has grown to $2.8 trillion, reaching its highest level since late January," and "buying forces have been driving the cryptocurrency market since Sunday, the 20th."
Accordingly, market attention is focused on whether the so-called 'crypto winter' that continued throughout this year is ending and the market is emerging from stagnation.
Matt Hogan, Chief Investment Officer (CIO) at Bitwise, appeared on US business channel CNBC and predicted, "I think the winter is over and spring flowers are blooming now," adding, "This bull market will be the strongest and longest-lasting in cryptocurrency history."
Hogan cited as evidence that although the cryptocurrency market experienced a downturn for a while, trading volume increased during this period, and mainstream companies like BlackRock also participated in the cryptocurrency market, indicating an improvement in fundamental strength.
He also presented the outlook that AI sector investors would withdraw their funds and invest in cryptocurrencies.
Analysts at investment bank BTIG also released an analysis that if Bitcoin's price maintains the $75,000 level, it could surge past its next target of $82,000 to $90,000.
However, Bitcoin's price is still more than 30% lower compared to its all-time high of $126,210.5 recorded on October 6 last year.
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