NEW YORK: Bitcoin climbed above $85,000 on Monday, Sept. 21, as a sharp rally over the past several days raised fresh hopes that the cryptocurrency market’s long downturn may be ending and investors could be returning to digital assets.
Bitcoin reached $85,229 earlier Monday, its highest level since late January, before trading around $84,256, up about 3.8%, according to CoinMetrics. The cryptocurrency has gained more than 7% over the past five days and nearly 35% over the last three months, although it remains below its record high of more than $126,000 reached in October 2025.
Investors are now watching whether the so-called “crypto winter,” a prolonged period of weak digital asset prices, has come to an end.
“I do think it’s over, it’s crypto spring,” Matt Hougan, chief investment officer at Bitwise, said.
Hougan said cryptocurrency fundamentals have continued to improve despite the recent decline in prices. He pointed to increased blockchain activity and growing involvement from major financial companies such as BlackRock.
He said the market experienced a period in which cryptocurrency prices declined while underlying activity and adoption continued to grow. Hougan expects prices to catch up with those improvements later this year.
Analysts at BTIG said Sunday that if Bitcoin holds above $75,000, the cryptocurrency could move toward $90,000, with $82,000 identified as an intermediate target. Shares of crypto-related companies, including Micro Strategy and Coinbase, also rose in U.S. premarket trading.
Investors watch regulation and AI stocks:
Bitcoin’s latest rally comes despite a recent setback for U.S. crypto legislation. The Senate last week blocked the Clarity Act from advancing. The bill would have established a regulatory framework for cryptocurrencies and divided oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Hougan said the legislation’s failure does not necessarily mean weaker regulation for the crypto industry. He argued that the SEC and CFTC could continue developing rules under what he described as a more crypto-friendly regulatory environment.
The rally may also reflect a shift in investor interest from artificial intelligence stocks toward cryptocurrencies, Hougan said. He argued that the AI boom had attracted much of the market’s attention, particularly from momentum-focused investors. As enthusiasm around AI stocks has cooled, some of that money may be moving back into crypto.
Bitcoin remains well below its record high, but its recent gains have put investors’ attention back on whether the cryptocurrency can continue its recovery through the end of the year.
