Image Source: CNBC
Bitcoin climbed above $86,000 on Monday, extending a sharp recovery that has pushed the cryptocurrency to its highest level since late January. The rally has renewed debate over whether the prolonged “crypto winter” is finally coming to an end.
Bitcoin traded near $85,863.40, up approximately 5.8%, according to CoinMetrics. Earlier in the session, it reached $86,349.90. The cryptocurrency has gained more than 8% over the past week and 34% during the last three months, although it remains below its record high of more than $126,000, reached in October 2025.
Bitcoin Rally Sparks Powerful Crypto Spring Debate
Investors are now weighing whether digital assets have entered a new growth cycle. Matt Hougan, chief investment officer at Bitwise, told CNBC’s “Squawk Box Europe” that he believes the difficult period for the market has ended.
“I do think it’s over, it’s crypto spring, the crocuses are blooming,” Hougan said. He added that the current period could become “the strongest and longest-running bull market in crypto’s history.”
His argument is based partly on the gap between cryptocurrency prices and underlying industry activity. While prices declined for a period, Hougan said the fundamentals continued to improve. Blockchain transactions increased, major financial institutions remained involved, and firms such as BlackRock continued building a presence in the digital asset market.
“We had this unusual situation where you had a cyclical decline in prices even as you had a secular improvement in fundamentals,” Hougan said. He expects prices to catch up with those improvements before the end of the year.
Critical Price Levels Could Shape the Next Move
Technical analysts are also watching key price levels closely. Analysts at BTIG said in a Sunday note that bitcoin’s outlook remains constructive as long as the $75,000 level holds. From there, they said bulls could target a move through $82,000 and potentially toward $90,000.
- Bitcoin reached an intraday high of $86,349.90.
- The cryptocurrency gained more than 8% in one week.
- Bitcoin rose approximately 34% over three months.
- BTIG identified $75,000 as an important support level.
- A sustained move above $82,000 could open a path toward $90,000.
The recovery also lifted crypto-related companies in U.S. trading. Strategy and Coinbase both moved higher as investors responded to renewed momentum across the sector.
Regulatory Setback Fails to Stop Digital Asset Momentum
The latest advance came despite a setback in Washington. The U.S. Senate voted last week to block the Clarity Act from advancing. The proposed legislation would have created a broader regulatory framework for cryptocurrency and divided oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Regulatory uncertainty has traditionally weighed on digital assets. However, Hougan said the bill’s failure could ultimately have a less negative impact than investors might expect. He pointed to what he described as the most supportive SEC and CFTC in U.S. history.
“Ironically, in the absence of Clarity passing, we may actually have stronger pro-crypto regulation,” Hougan said.
The comments reflect a wider shift in how investors view cryptocurrency policy. The Genius Act, which passed last year, provided support for the market by establishing rules related to stablecoins. Market participants are now watching whether regulators continue taking a more accommodating approach despite Congress’s inability to advance new legislation.
Surprising AI Rotation Adds Fuel to the Rally
Hougan also suggested that investment flows may be moving away from artificial intelligence stocks and back toward cryptocurrency. The AI boom attracted substantial attention and capital, leaving fewer funds available for other momentum-driven trades.
As AI-related shares have lost some momentum, investors may be searching for another high-growth opportunity. Hougan said this could be helping digital assets regain attention and attracting fresh money into the sector.
Whether the move develops into a lasting bull market will depend on several factors, including bitcoin’s ability to remain above major support levels, continued institutional participation and progress on cryptocurrency regulation. For now, the price action has given crypto investors a powerful reason for renewed optimism.
Frequently Asked Questions About Bitcoin
Why did bitcoin rise above $86,000?
Bitcoin gained momentum as investors responded to stronger recent price performance, improving blockchain fundamentals, institutional participation and possible capital rotation from AI stocks into digital assets.
What is crypto winter?
Crypto winter describes a prolonged period of weak cryptocurrency prices, reduced investor enthusiasm and lower market activity. The latest downturn followed bitcoin’s record high in October 2025.
What price level is important for bitcoin?
BTIG analysts identified $75,000 as an important support level. If that level holds, they believe bitcoin could potentially move through $82,000 and toward $90,000.
What happened to the Clarity Act?
The U.S. Senate voted last week to block the Clarity Act from advancing. The bill would have established a regulatory framework and divided cryptocurrency oversight between the SEC and CFTC.
