Bitcoin Retreats from Eight-Month High After Dizzying Rally

Bitcoin retreated from its eight-month high of $87,381 on Tuesday after surging over 13% in just four days. The cryptocurrency eased to around $85,500 in early Singapore trading but remains up significantly from last week's lows.

The rapid price increase has traders believing the bear phase may be over, with momentum bringing sidelined capital back into the market. However, Rich Rosenblum of GSR warns that this could be a 'macro liquidity trade wearing a crypto costume,' putting Bitcoin under pressure if risk assets wobble.

Bitcoin has shrugged off recent headwinds, including last week's failure of landmark US legislation and the Federal Reserve's interest-rate increase. Instead, it has benefited from falling oil prices and optimism ahead of the US-China summit.