Bitcoin hits highest level since January at $85,000, as the market debates whether the 'crypto winter' is over

• Matt Hougan, CIO at Bitwise, declared the crypto winter over and predicted this could be 'the strongest and longest-running bull market in crypto's history,' citing improved blockchain fundamentals and involvement from major firms like BlackRock
• The rally occurred despite the Senate blocking the Clarity Act last week, though analysts suggest pro-crypto leadership at the SEC and CFTC may provide favorable regulation regardless
• BTIG analysts set a technical price target of $90,000 if bitcoin holds support at $75,000, while Hougan suggested money is rotating from AI stocks back into cryptocurrency

Summary: Bitcoin Rallies to $85,000 as Market Debates End of "Crypto Winter"

Key Price Movement:

Bitcoin surged above $85,000 on Monday, reaching $85,229 at its peak—the highest level since late January. The cryptocurrency traded at $84,256 around 6:35 a.m. ET, up 3.8%. While still down year-to-date from its October 2025 all-time high of over $126,000, Bitcoin has gained 7% over five days and nearly 35% over three months.

Market Sentiment:

Matt Hougan, CIO at Bitwise, declared the "crypto winter" over, predicting "the strongest and longest-running bull market in crypto's history." He expects Bitcoin to surpass its all-time highs by next year, citing improving fundamentals including increased blockchain transactions and institutional involvement from firms like BlackRock.

Technical Analysis:

BTIG analysts indicated that if Bitcoin holds the $75,000 support level, bulls could target $82,000 en route to $90,000. Crypto-related stocks rose in U.S. premarket trading.

Regulatory Developments:

Despite the Senate blocking the Clarity Act last week—legislation designed to establish a regulatory framework dividing oversight between the SEC and CFTC—Hougan suggested this might paradoxically benefit crypto. He noted the current SEC and CFTC are "the most pro-crypto" in U.S. history.

Market Dynamics:

Hougan identified a rotation of momentum investors from AI stocks back into cryptocurrency as the AI boom "leveled off," providing renewed liquidity to the crypto market. He emphasized that prices are catching up to fundamentals that strengthened even during the recent downturn.