Bitcoin Surges Above $86,000 as Crypto Momentum Returns

Bitcoin is back above $86,000 for the first time since January 29. The latest rally has spread beyond the cryptocurrency itself, with crypto-linked stocks and investment products seeing significant gains.

The move comes as improving momentum across blockchain networks and renewed interest from investors who had focused on artificial intelligence trade are driving up prices. According to Matt Hougan, chief investment officer at Bitwise, crypto fundamentals continued to improve even while prices were falling.

Hougan believes the prolonged downturn in crypto has ended, describing the market as having moved from 'crypto winter' into 'crypto spring.' He expects the next bull market to be particularly strong and long-running.

The rally becomes more striking when viewed against the regulatory backdrop. The US Senate blocked a major crypto bill from advancing just before Bitcoin's latest surge, but this has not weighed on sentiment.