Bitcoin surged above $85,000 on Monday, reaching $85,229 at its peak, the highest level since late January, before trading at $84,256 around 06:35 a.m. ET, up approximately 3.8% according to CoinMetrics [1]. This rally marks a sharp increase of more than 7% in the last five days and nearly 35% over the past three months, although bitcoin remains below its all-time high of over $126,000 set in October 2025 [1].
The market is actively debating whether the 'crypto winter'—a prolonged period of depressed digital asset prices that began after the October 2025 peak—is now over. Matt Hougan, CIO at Bitwise, stated, 'I do think it's over, it's crypto spring, the crocuses are blooming,' and predicted that this could be the strongest and longest-running bull market in crypto's history [1]. Hougan highlighted that while prices declined cyclically, cryptocurrency fundamentals improved, citing increased blockchain transactions and greater involvement from major firms like BlackRock [1]. He expects prices to catch up with fundamentals by the end of the year and does not anticipate bitcoin remaining below its all-time highs into next year [1].
Analysts at BTIG noted that as long as bitcoin holds above $75,000, 'bulls can target a push through 82k on the way to' $90,000 [1]. The rally has also lifted crypto-related stocks such as Strategy and Coinbase in U.S. premarket trading [1].
The surge comes despite the U.S. Senate blocking the Clarity Act last week, which would have established a regulatory framework for crypto and divided oversight between the SEC and CFTC [1]. Hougan argued that the current regulatory environment remains favorable, describing the SEC and CFTC as the 'most pro-crypto' in U.S. history, and suggested that the absence of the Clarity Act could ironically result in stronger pro-crypto regulation [1]. He also observed a rotation of investor interest from AI stocks back into crypto as the AI boom has leveled off [1].
CONCLUSION
Bitcoin's rally above $85,000 signals renewed optimism in the crypto market, with analysts and industry leaders suggesting the end of the 'crypto winter.' Supportive regulatory sentiment and a shift in investor focus from AI to crypto are contributing to the bullish outlook, with targets set as high as $90,000 if current levels hold.