Bitcoin has broken through the $80,000 level for the first time in three months, while Asian stock markets approach record highs. The world's largest cryptocurrency rose 2.1% to $80,594 on Monday, reaching its highest point since January 31. Other smaller tokens, including Ethereum, also advanced. The rally in cryptocurrencies comes as the MSCI Asia stock index nears the historic peak set in February. Stronger-than-expected earnings from technology companies last week improved investor risk appetite, fueling a rebound in equities. Markets are currently assessing conflicting signals regarding the situation in Iran. U.S. President Trump stated that the United States would begin escorting vessels unrelated to the conflict through the Strait of Hormuz, but a senior Iranian official warned that Iran would view any U.S. intervention in the strait as a violation of the ceasefire agreement. Bitcoin hit an all-time high of just over $126,000 in October last year, then entered a prolonged slump, falling to around $60,000 in February. Since then, the token has gradually recovered lost ground, partly due to improved institutional demand. Data show that U.S. Bitcoin exchange-traded funds recorded net inflows of $630 million last Friday. Sean McNulty, Head of Asia-Pacific Derivatives Trading at FalconX, noted that institutional activity in derivatives markets indicates "high confidence that Bitcoin could reach $85,000 by mid-month." Richard Garvin, Executive Chairman of cryptocurrency investment firm DACM, said optimism that U.S. lawmakers may reach an agreement on key stablecoin yield provisions is also boosting trader confidence, potentially paving the way for crypto policy to advance in the Senate. He added that it is still "early days," but $80,000 has "always been an important psychological barrier." At the time of writing, Bitcoin had pared some gains, trading slightly above $80,000. Caroline Moron, Co-Founder of Orbit Markets, suggested that a clear break above $80,000 could provide "further upward momentum for this asset class."
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