Bitcoin Soars to Eight-Month High of $85,200 on Regulatory Hopes
Bitcoin has reached an eight-month high of $85,200 on Monday, driven by increased ETF inflows, regulatory progress and a pickup in risk appetite. According to Naeem Aslam, chief investment officer at Zaye Capital Markets, the rebound is attributed to stronger ETF inflows, regulatory developments, and a sharp squeeze in bearish positions.
The cryptocurrency had declined last week after the long-awaited Clarity Act was blocked in the Senate. Carsten Menke, head of next generation research at Julius Baer, noted that for now crypto markets in the US will function under a patchwork of existing rules, regulations, court decisions and the already-enacted Genius Act for stablecoins.
Aslam emphasized that Bitcoin remains more directly sensitive to liquidity, the dollar, Treasury yields, and institutional flows rather than to political statements. He added that regulatory measures that permit more tokenised asset activity and clearer digital-market frameworks can bolster confidence in the wider blockchain ecosystem by reducing uncertainty around how institutional products and trading venues will operate.