Bitcoin, the world’s leading cryptocurrency by market capitalization, has surpassed the $85,000 threshold for the first time since late January.

According to the U.S. cryptocurrency exchange Coinbase on the 21st (local time), the price of a single Bitcoin hit $85,895 as of 1:30 PM Eastern Time, marking an increase of about 5.75% over the previous 24 hours.

This marks the first time Bitcoin has reclaimed the $85,000 mark in approximately eight months, since it recorded $84,506 on January 29.

Over the past five days, Bitcoin has risen by more than 7%, with its three-month gains reaching roughly 35%.

Bitcoin experienced a sharp decline earlier due to the derailment of the "Clarity Act" in the U.S. Senate on the 15th, compounded by the Federal Reserve's rate hike. However, the market has since absorbed these headwinds and resumed its upward trajectory.

Analysts attribute this rally to a downward trend in global crude oil prices, alongside growing optimism in asset markets ahead of an upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping.

Ethereum, the second-largest cryptocurrency by market cap, also rose 4.55% over the past 24 hours to trade at $2,750.

Alex Kuptsikevich, a senior analyst at crypto analysis firm FxPro, told Bloomberg, "The total crypto market capitalization has expanded to $2.8 trillion, reaching its highest level since late January," adding that "buyers have been driving the crypto market since Sunday the 20th."

As a result, market attention is heavily focused on whether the so-called "crypto winter" that persisted throughout the year is finally ending, pulling the market out of its slump.

Matt Hougan, Chief Investment Officer (CIO) at Bitwise, appeared on U.S. business channel CNBC and stated, "I think the winter is over and spring flowers are blooming," predicting that "this bull run will be the strongest and longest-lasting in crypto history."

Hougan cited underlying fundamental improvements as the basis for his outlook, noting that despite the prolonged downturn, trading volumes increased and mainstream institutions like BlackRock entered the crypto market.

He also presented the perspective that investors in the AI sector are likely to reallocate their funds into cryptocurrency investments.

Analysts at investment bank BTIG also suggested that if Bitcoin prices maintain the $75,000 support level, it could surpass its previous target of $82,000 and surge up to $90,000.

However, the price of Bitcoin remains more than 30% lower compared to its all-time high of $126,210.5 recorded on October 6 of last year.

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