Bitcoin Hits Eight-Month High on Risk Appetite Surge
Bitcoin has hit an eight-month high after a combination of factors lifted risk appetite and sentiment in the market. On Monday, Bitcoin jumped by as much as 5.1% to $85,222 in early New York trade, passing the $85,000 mark for the first time since January.
This surge is attributed to falling oil prices and optimism ahead of a summit between US President Donald Trump and China's Xi Jinping, which boosted stocks and bonds alongside crypto assets.
Key events that contributed to this upward momentum include the Federal Reserve's first interest rate increase in over three years and the green light from the US Securities and Exchange Commission for digital versions of securities to trade. This has led to a significant increase in the total crypto market value, reaching $2.8 trillion, its highest since January.
Pratik Kala, a portfolio manager at Apollo Crypto, noted that 'people are repositioning from downside protection to wanting to capture the upside.' However, retail investors remain cautious, with some experts warning that this momentum may not last due to elevated US Treasury yields and crude prices above $100 a barrel.