Bitcoin surges past $85,000 for first time since January as investors bet ‘crypto winter’ is over

Bitcoin has climbed to its highest level since January driven by improving investor sentiment, stronger demand and a significant so-called ‘short squeeze’.

The price of bitcoin jumped from $81,000 to $84,500 a coin this morning, a near 5 per cent rise. 

Other cryptocurrencies have risen as well, with ethereum up 7 per cent and solana up 6.7 per cent in the past 24 hours.

The rally left investors assessing whether the ‘crypto winter’ – which saw bitcoin crash back down to earth after hitting an all-time high of over $126,000 in October 2025 – is over.

‘I do think it’s over, it’s crypto spring, the crocuses are blooming,’ Matt Hougan, chief investment officer at Bitwise, told CNBC.

“I think this will actually be the strongest and longest-running bull market in crypto’s history.’

Experts say the move upwards over the past few weeks has lifted investor spirits and squeezed those who took short positions – betting bitcoin’s price would fall. 

Javier Molina, market analyst at eToro, said: ‘Bitcoin’s move to its highest level since January is being driven by a combination of improving investor sentiment, stronger demand and a significant short squeeze, which has forced traders positioned for further downside to buy back into the market.’

He added: ‘The break above the $83,000 area is a positive technical signal, but the next step is more important. 

‘Bitcoin now needs to show that it can hold these levels once the short squeeze fades.

‘For the rally to become more sustainable, we need to see continued spot demand and consistent inflows rather than a move driven mainly by derivatives and forced buying.’

Experts say the move reflects a bullish momentum across crypto markets, supported by stronger liquidity and continued adoption of digital assets.

Mr Molina adds: ‘For investors, the key message is not to chase a 5 per cent move.

‘Bitcoin remains a highly volatile asset and sharp pullbacks are normal, even within a broader uptrend.

‘At these levels, position sizing, a long-term horizon and avoiding excessive leverage matter more than trying to time the next few percentage points.

‘The setup has improved, but confirmation now matters more than momentum.’

The short squeeze has seen hundreds of millions of dollar in crypto liquidated – $262.30million of bearish positions were liquidated in a single hour, according to Coin Glass.

Elsewhere this morning, the FTSE 100 is up nearly 112 points to 10,771 while the price of oil has fallen back a little to $97 after reaching a $103 a barrel last week.