Bitcoin Retreats from Eight-Month High After Dizzying Rally

Bitcoin's dizzying rally has taken a breather as it retreated from its eight-month high. After surging over 13 percent in just four days, the cryptocurrency eased to around $85,500 in early Singapore trading, down from its peak of $87,381 in the US session.

This latest price action still leaves Bitcoin up about $10,000 from last week's lows and brings it back to late-January levels. However, it remains well below its record high of $126,000 set in October.

Industry observers are attributing the rapid move higher to a combination of factors, including the rebound in risk assets such as stocks, the green light from the Securities and Exchange Commission for blockchain-based securities, and falling oil prices. Optimism ahead of the summit between US President Donald Trump and China's Xi Jinping is also contributing to the bullish sentiment.

However, not all experts are convinced that this rally will hold. Rich Rosenblum, co-founder of crypto market maker GSR, warns that it could be a 'macro liquidity trade wearing a crypto costume', which would put Bitcoin under significant pressure if risk assets wobble.