The world's biggest cryptocurrency has seemingly cast off the funk that settled over crypto markets following the collapse of FTX and the failures of other crypto-related businesses.

It has rallied 50% since mid-October and is up by over 150% so far this year, on course for its best annual performance since 2020.

Bitcoin's momentum appears fueled by the possibility of U.S. interest rate cuts and traders betting that the U.S. will soon approve exchange-traded bitcoin funds.

A spot bitcoin ETF could allow previously wary investors access to crypto via the stock market, ushering a new wave of capital into the sector.

The momentum is helping boost companies tied to the cryptocurrency like Microstrategy, a bitcoin investor, its shares up more than 8% in Monday morning trading.

And shares of crypto exchange Coinbase rose 7.5%. The stock is coming off a stellar month, rising nearly 62% in November even as Coinbase reported a decline in third-quarter trading volumes.

Investors have also welcomed the settlement of a years-long U.S. criminal probe into Binance, the world's largest crypto exchange and a key cog in the worldwide crypto market.

The deal, which saw Binance's founder step down after pleading guilty to breaking U.S. anti-money laundering laws, allows the company to continue operating.

Another cryptocurrency, ether, also rose on Monday, hitting $2,274.

Both bitcoin and ether, however, remain far below their record highs, hit in 2021, of $69,000 and $4,868 respectively.