Bitcoin surged above $84,000 on Monday, reaching its highest level since May, as improving risk appetite and easing pressure from oil prices helped cryptocurrencies rebound sharply.
The world’s largest cryptocurrency climbed as high as $84,721, breaking decisively through the $80,000 level after several months of trading below it.
The rally comes after financial markets were pressured by concerns over rising government bond yields, elevated debt levels and expectations of tighter monetary policy from major central banks.
IG chief market analyst Chris Beauchamp said markets had returned to a more risk-on environment, helping Bitcoin break above its previous May highs.
Cryptocurrencies were broadly stronger, with recent investment inflows providing additional support and potentially encouraging further capital back into the sector.
Falling oil prices have also eased some inflation concerns, while investors appear increasingly willing to hold risk assets despite the prospect of US interest rates remaining higher for longer.
For Bitcoin investors, the move through $80,000 and then above $84,000 represents a significant short-term recovery, with attention now turning to whether the rally can hold above the former resistance area rather than quickly reversing below it.
