Bitcoin Surges to Eight-Month High, Recovery Remains Imperfect

Bitcoin's price surged to $85K on Monday, marking its highest level in eight months. Despite this increase, the recovery remains imperfect due to weak US spot demand.

The crypto's value jumped around 6% over 24 hours and exceeded a 30% gain since August 19. Spot Bitcoin ETFs from BlackRock and Fidelity reportedly attracted nearly $433 million on Friday.

However, the Coinbase premium remains negative at -0.02, indicating weaker demand or higher selling pressure on the American platform. Matt Hougan, Chief Investment Officer at Bitwise, believes that the market has entered a 'crypto spring' and projects the bull cycle as 'the most powerful and longest' in the sector's history.

The strength of the rebound will depend on three signals: a sustained move back above zero for the Coinbase premium, positive ETF flows, and Bitcoin defending the zone between $80,000 and $85,000 dollars after liquidations. Maintaining above $85,000 dollars would consolidate the scenario of a recovery fueled by spot acquisitions.