Bitcoin surged to $85,000 on Monday, marking its highest level since late January and renewing debate over whether the so-called 'crypto winter' has ended. The cryptocurrency rose as high as $85,229 intraday, up 3.8% from the previous day’s close, according to CoinMetrics data. Ethereum and Solana also posted gains of 7% and 6.7%, respectively, over the past 24 hours.
The rally lifted Bitcoin-linked equities, with MicroStrategy (MSTR) up 6%, MARA Holdings (MARA) gaining 5%, and Riot Platforms (RIOT) rising 4%. The CoinShares Bitcoin Mining and Digital Power ETF (WGMI) advanced 3%, while the SPDR S&P 500 ETF Trust (SPY) rose 0.7%, underscoring the move as crypto-specific rather than a broad market rally.
Market Sentiment and Short Squeeze
Analysts attributed the surge to a combination of improved investor sentiment, stronger demand, and a significant short squeeze, which forced traders betting against Bitcoin to cover their positions. Javier Molina, market analyst at eToro, noted that Bitcoin’s break above $83,000 was a "positive technical signal," but cautioned that sustainability would require continued spot demand rather than reliance on derivatives-driven buying.
Matt Hougan, chief investment officer at Bitwise, declared the crypto winter over, stating: "I do think it’s over, it’s crypto spring, the crocuses are blooming." He predicted this could be the strongest and longest-running bull market in crypto’s history, though Bitcoin remains well below its October 2025 all-time high of over $126,000.
Bitcoin’s Recent Performance
Over the past five days, Bitcoin has gained more than 7%, and over the last three months, it has climbed nearly 35%. Despite this rebound, the cryptocurrency is still down for the year. The recent rally follows a prolonged period of depressed prices, often referred to as the 'crypto winter,' which began after Bitcoin’s peak in late 2025.
Bitcoin’s Role in the Broader Market
Bitcoin’s price action has historically influenced related sectors, including mining stocks and crypto-linked funds. The latest surge lifted the CoinShares Bitcoin Mining and Digital Power ETF (WGMI) by 3%, while broader equity benchmarks like the SPDR S&P 500 ETF Trust (SPY) saw only modest gains of 0.7%, highlighting the rally’s narrow focus.
What’s Next?
The sustainability of Bitcoin’s rally remains a key question. Analysts emphasize that for the upward trend to continue, consistent spot demand and increased adoption of digital assets will be critical. The next major test will be whether Bitcoin can maintain levels above $83,000 once the short squeeze subsides and derivative-driven momentum fades.