Key facts
- Bitcoin surged above $85,000, its highest level since late January.
- Ether, XRP, Solana, and Monero also posted gains.
- US spot Bitcoin ETFs saw $593 million in inflows over Thursday and Friday.
- Michael Saylor's Strategy purchased $75.7 million of Bitcoin.
- Open interest in Bitcoin options on Deribit showed a strong preference for calls.
Bitcoin surged past $85,000 on Monday, marking its highest level since late January and signaling a potential thaw in the cryptocurrency market's prolonged downturn. The rally is supported by a broader market optimism, driven by falling oil prices and anticipation of a summit between US President Trump and China's Xi Jinping.
Rival digital assets also saw significant gains, with Ether climbing to nearly $2,750, and XRP, Solana, and Monero posting advances. This upward momentum builds on a recovery that began late last week, partly influenced by the failure of the Clarity Act to establish clearer industry regulations and the Federal Reserve's recent interest-rate increase.
Michael Saylor, founder of Strategy, expressed a positive outlook, suggesting that supportive rules from regulators like the SEC, CFTC, and Treasury are more beneficial than restrictive legislation. He noted that the company purchased $75.7 million of Bitcoin and repurchased $174 million of its preferred shares, aiming to rebuild investor confidence and strengthen its balance sheet.
Market sentiment appears bullish, with Bitcoin options open interest on Deribit heavily favoring calls, indicating a greater expectation of price increases. However, some traders remain cautious due to macroeconomic headwinds, including elevated crude oil prices and US Treasury yields. Retail enthusiasm is also being challenged by competition from AI-related trades.
US spot Bitcoin ETFs experienced substantial inflows, totaling $593 million over Thursday and Friday. Notably, Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) accounted for the majority of these inflows, a shift from previous trends where BlackRock’s iShares Bitcoin Trust (IBIT) dominated. On-chain analytics platform Glassnode reported that Bitcoin's cost basis for investors in US spot Bitcoin ETFs is currently at $85,638.