Bitcoin Surges Past $85,000, Fuels Speculation of End to Crypto Winter

Bitcoin's price surged above $85,000 on Monday, reaching its highest level since late January. The cryptocurrency has been on a sharp rally over the past few days, with investors assessing whether the 'crypto winter' is finally over.

Matt Hougan, CIO at Bitwise, believes that the crypto winter is indeed over and that we're now entering what he calls 'crypto spring'. He points to increased transactions across blockchains and involvement from major firms like BlackRock as evidence of a secular improvement in fundamentals.

Hougan thinks that prices are going to catch up toward the end of the year, with analysts at BTIG predicting a push through $90,000 if the $75,000 level holds. The rally comes despite the US Senate blocking the Clarity Act from advancing last week, which would have set up a framework for crypto in the US and divided industry oversight between the SEC and CFTC.

Interestingly, Hougan suggests that the absence of the Clarity Act passing may actually lead to stronger pro-crypto regulation, with both the SEC and CFTC being seen as 'pro-crypto' agencies. He also notes that investors are rotating out of AI stocks back into crypto, following the AI boom's leveling off.