Bitcoin, the world's largest cryptocurrency, has managed to reclaim the $25,000 level for the first time since August 2022.
It has so far peaked at $25,270 on the Bitstamp exchange, reaching a six-month high.
The market cap of the leading cryptocurrency has now surpassed $477 billion.The recent price spike might come as a surprise given that the crypto markets were on the brink week due to growing regulatory scrutiny from US authorities.
However, despite these challenges, bullish sentiment in risk assets has been buoyed by expectations of a milder-than-expected economic downturn. Moreover, some market observers believe that the Federal Reserve is on track to slow down the pace of interest rate increases.
Some attribute the most recent rally to a "short squeeze," tax-loss harvesting, or the fact that crypto investors seem to be abandoning altcoins and investing more in Bitcoin, which is considered to be a more established cryptocurrency.
However, it is worth noting that market watchers are already questioning how long it will last.