Bitcoin jumped more than 3.7% to surpass $84,000 immediately after the market opened in Europe, reaching its highest level in eight months, as it continued an upward trend that began on Friday.

The price of the leading cryptocurrency surged to $84,129 before paring its gains, and it hovered near $83,900 at 10:00 AM London time. Ethereum, the world's second-largest cryptocurrency, also rose by more than 2.8%, and other cryptocurrencies, including XRP, Solana, and Monero, posted gains as well.

The surge came after US-based Bitcoin spot funds indicated a return of investor interest late last week, attracting $593 million on Thursday and Friday, offsetting significant outflows over the previous two days and ending the week with net inflows of $6 million. Bitcoin jumped more than 6% last Friday.

Call options dominated open Bitcoin contracts on the Deribit options trading platform, indicating bullish sentiment. The platform showed over 272,000 contracts granting the right to buy the cryptocurrency, compared to over 154,000 put options, which grant the right to sell.

Pratik Kalla, portfolio manager at Apollo Crypto, a digital asset hedge fund, said: The Bitcoin options market is taking up positions to capitalize on the upside, adding: Investors are shifting their positions from hedging against downside risks to seeking to profit from gains.

Doubts about the continued momentum of formation

This shift in investor confidence came at the end of a tough week for digital assets, which saw the failure of a major US bill on cryptocurrencies and the first interest rate hike by the US Federal Reserve in over three years. The US Securities and Exchange Commission's approval last Thursday to allow trading of digital versions of securities in the United States helped boost this confidence.

But traders are unconvinced that this momentum can continue given the tough macroeconomic headwinds, with crude oil prices remaining above $100 a barrel and US Treasury yields continuing to rise.

Jeff Mee, Chief Operating Officer at BTSE, explained: “For this week, there are no specific major catalysts worth watching, but any statements reflecting a tightening or easing of monetary policy by Federal Reserve officials could affect the market.”