Bitcoin surpasses $85,000, highest level in eight months — The National
Amid news from the United States, bitcoin surpassed the $85,000 mark on Monday and reached its highest level in eight months. The world's largest cryptocurrency rose 5% to $85,200 before later retreating to $84,473, according to CoinMarketCap data. This was reported by The National.
ETF inflows
Naeem Aslam, chief investment officer at Zaye Capital Markets, linked the rise to stronger inflows into exchange-traded funds, regulatory factors and a sharp closure of bearish positions. Bitcoin recovered after falling below $76,000 last week.
According to Aslam's assessment, institutional demand is now partly absorbing pressure from higher interest rates. Last week, the US Federal Reserve raised rates for the first time in three years.
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Regulatory uncertainty
Last week, the cryptocurrency declined after the Senate blocked the Clarity Act initiative, which is intended to create a clear regulatory framework for cryptocurrencies in the United States. Carsten Menke of Julius Baer noted that without this act, the US crypto market will continue to operate under a combination of existing rules, regulations, court decisions and the already adopted Genius Act on stablecoins.
In Menke's view, consistent regulation would be beneficial, but cryptocurrency adoption is primarily driven by new solutions, including prediction markets, trading platforms and credit cards linked to stablecoins. Aslam also stressed that bitcoin is more sensitive to liquidity, the dollar exchange rate, US Treasury yields and institutional flows than to political statements.
Improved market sentiment was also supported by expectations of talks between US President Donald Trump and Chinese President Xi Jinping. At the same time, Aslam warned that tensions surrounding Iran and sanctions could increase volatility and strengthen investors' defensive sentiment.
