Bitcoin surged above the $85,000 mark on Monday, marking an 8-month high.

The flagship cryptocurrency continued its red-hot rebound, adding 4.7% to $85,117 after an uplift of nearly 6% last week. Investors shrugged off two potential hurdles--a failure to pass the Clarity Act, as well as the Federal Reserve's quarter-point interest-rate hike--to finish the week higher.

It is now up over 30% since Aug. 19 and is holding firmly above the $80,000 level that has proved a stubborn cap in recent weeks.

"Cryptocurrencies are advancing in a group this morning, a move given strength by recent inflows and one likely to attract even more of those vital funds," said Chris Beauchamp, IG's chief market analyst. "Perhaps investors are realizing that they can live in a world of higher U.S. rates, though falling oil prices certainly help too."

Bitcoin's move higher is supported by stronger exchange-traded fund inflows, positive regulatory developments and investors closing earlier bets against the cryptocurrency, wrote Zaye Capital Markets analyst Naeem Aslam in a note.

Investors are looking ahead to the planned summit between U.S. President Trump and Chinese President Xi Jinping on Thursday. A truce in the tariff war is due to expire on Nov. 10, and any progress made to ease trade tensions could boost sentiment for risk assets including cryptocurrencies.