Bitcoin Soars to Eight-Month High Amid Gains in Stocks and Bonds

Bitcoin surged to an eight-month high on September 21, as overall risk sentiment improved and extended its rally from last week. According to UNN, citing Bloomberg, the cryptocurrency jumped 5.1% to $85,222 in morning trading.

The rally is attributed to gains in stocks and bonds, with falling oil prices and optimism ahead of the summit between US President Donald Trump and Chinese President Xi Jinping supporting markets overall. Oil prices fell to an 11-day low, which contributed to the market's positive sentiment.

Rival digital assets also saw gains, with Ether rising more than 4.3% to $2,747. Other cryptocurrencies such as XRP, Solana, and Monero posted increases as well.

Financial markets have regained their appetite for risk after being concerned about government bond yields, huge debt obligations, and the prospect of a return to tighter policy by central banks, said Chris Beauchamp, chief market analyst at IG. Bitcoin's rise continues the climb that began late last week, when cryptocurrencies weathered the failure of the Clarity Act in the US.

The crypto market capitalization rose to $2.8 trillion, reaching its highest level since the end of January this year. Although Friday's rally was followed by increased selling pressure, buyers have dominated the cryptocurrency market since Sunday, according to Alex Kuptsikevich, chief market analyst at FxPro.

On the Deribit trading platform, which specializes in bitcoin options, open interest consisted mainly of call options, indicating bullish sentiment. The platform showed more than 272,000 contracts granting the right to buy Bitcoin, compared with more than 154,000 put options or rights to sell. The bitcoin options market is ready for growth, said Pratik Kala, a portfolio manager at Apollo Crypto.