Ethereum also gains as cryptocurrency market value rises above $2.8tn amid fresh US regulatory developments…….
Bitcoin extended its recent recovery on Monday, breaking above the $85,000 mark to reach its highest level in about eight months as gains spread across the broader cryptocurrency market.
The world’s largest cryptocurrency by market capitalisation climbed to approximately $85,117 during Monday’s trading session, according to data from CoinMarketCap.
The move places bitcoin at its strongest level since January and marks a notable recovery after a period of sharp volatility across digital asset markets.
Bitcoin’s latest advance comes despite a 25-basis-point increase in the US Federal Reserve’s benchmark interest rate last week, which took the target range to between 3.75% and 4%.
The cryptocurrency’s rise was accompanied by gains in other major digital assets.
Ethereum, the second-largest cryptocurrency by market capitalisation, rose 5.81% to $2,721, adding to the momentum across the sector.
Data from CoinMarketCap showed that the global cryptocurrency market capitalisation increased by 5.1% to $2.88 trillion, with more than $106.24 billion recorded in trading activity as of 12:30pm.
U.S regulatory moves boost market sentiment
The latest rally comes amid a series of regulatory developments in the United States that have increased attention on the use of blockchain technology in traditional financial markets.
One of the developments involves the US Securities and Exchange Commission, which introduced a temporary five-year innovation exemption for certain platforms seeking to facilitate limited on-chain trading of tokenised US stocks.
Under the exemption, qualifying tokenised securities venues may trade certain national market system stocks through permissioned automated market makers and liquidity pools.
The arrangement is subject to conditions, including restrictions on the number of stocks that can be traded and limits on trading volumes.
The regulatory move has added to broader developments around the integration of blockchain-based assets with conventional financial markets, as cryptocurrency platforms and financial institutions continue to explore tokenisation.
Bitcoin remains highly volatile
Despite the latest recovery, bitcoin’s performance over the past year has been marked by significant price swings.
On October 10, 2025, bitcoin fell by 8.4% to $104,782 after US President Donald Trump announced plans for a 100% tariff on Chinese exports, alongside export controls targeting critical software.
The announcement triggered a wider sell-off across cryptocurrency markets and resulted in large-scale liquidations.
Bitcoin’s latest move above $85,000 therefore represents another significant shift in a market that has continued to react sharply to developments in monetary policy, regulation and global economic conditions.
With bitcoin now trading at its highest level since January and major cryptocurrencies such as Ethereum also posting strong gains, investors are closely watching whether the latest rally can be sustained amid continuing shifts in US financial and regulatory policy.
