Bitcoin Soars Above $85,000 in Surprise Rally

Bitcoin has broken above $85,000 for the first time in about eight months since January. The cryptocurrency's recent rally saw it trade briefly at $85,229 on the morning of the 21st, U.S. Eastern Time.

The price surge comes despite setbacks such as the failure of the CLARITY Act to clear the Senate and a 0.25 percentage point interest rate increase by the Federal Reserve.

Market participants are watching whether this marks the end of the 'crypto winter'. Some argue that investors are rotating money out of artificial intelligence stocks into cryptocurrencies, while others see the collapse of the CLARITY Act as a positive development.

Matt Hougan, chief investment officer at Bitwise, noted that the U.S. Securities and Exchange Commission is the most crypto-friendly agency in U.S. history, suggesting that the bill's failure could open the way for even more favorable regulatory changes.