Bitcoin Breaks Above $86,000—Has the Crypto Winter Ended?

【Financial News New York = Correspondent Lee Byung-cheol】  Bitcoin broke above $86,000, reaching its highest level since late January. Expectations are growing that the so-called "crypto winter" that followed Bitcoin's record high last October may be coming to an end.
According to U.S. financial media outlet CNBC and others, Bitcoin was trading at $85,863.40 on the 21st, up about 5.8%. It surged as high as $86,349.90 during the session, its highest level since January 29. Bitcoin has gained more than 8% over the past week and 34% over the past three months.
Market watchers are predicting that the crypto asset slump that began last October may be entering its final stages. After reaching an all-time high of more than $126,000 last October, Bitcoin plunged and endured a prolonged downturn.
Matt Hougan, chief investment officer at Bitwise, told CNBC that he believes "the crypto winter is over," adding, "It is now the 'crypto spring,' and the crocuses are blooming." He forecast that "this bull market will be the most powerful and longest-lasting bull market in the history of crypto."
Hougan pointed to improving fundamentals in the crypto market as the backdrop to the recent price gains. He said transactions conducted on blockchains increased even as prices fell, while global financial firms such as BlackRock expanded their participation in the market.
He said, "An unusual situation emerged in which prices declined cyclically while the fundamentals improved structurally," adding, "I expect prices to catch up with the fundamentals as the year draws to a close." He also said he saw little chance that Bitcoin would remain below its previous all-time high next year.
Wall Street also sees room for further gains. BTIG said Bitcoin could rise toward $90,000 as long as it holds the $75,000 level. Shares of crypto-related companies such as Strategy and Coinbase also rose alongside Bitcoin on the day.
Analysts are paying particular attention to the view that investment funds recently concentrated in AI-related stocks are moving into crypto assets. Hougan explained, "Momentum investors focused on AI as the AI boom sucked all the oxygen out of the market," adding, "As the AI fervor has cooled to some extent, that money is flowing back into crypto assets."
Regulatory uncertainty has also failed to halt the rally for now. The U.S. Senate blocked the Digital Asset Market Clarity Act last week. The bill would have divided oversight authority over crypto assets between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Hougan said the bill's defeat could instead benefit the crypto market in the short term. He described the SEC and CFTC as "the most crypto-friendly regulators in U.S. history," saying, "Paradoxically, the failure of the Clarity Act to pass could create an even more crypto-friendly regulatory environment."



[email protected] Lee Byung-cheol, Correspondent Reporter