Bitcoin surpassed $90,000, boosting expectations of a potential recovery ahead of the new year.
The leading cryptocurrency, Bitcoin, surged 3.1%, surpassing the $90,200 level and signaling a significant breakout. Market optimism was not limited to Bitcoin; Ethereum also climbed almost 4%, surpassing $3,000.
The crypto market had remained relatively stagnant during the period when stocks were hitting record highs before Christmas. A multi-week selloff, which began in October with the liquidation of about $19 billion in leveraged positions, dampened investors’ risk appetite.
During this period, many traders have been cautious about a major reversal. However, the recent rise indicates that market sentiment is gradually changing.
ReserveOne chief investment officer Sebastian Bea said the move came from increased positions held by short-term retail investors in futures contracts.
According to data from CryptoQuant, Bitcoin funding rates reached their highest level since October 18, indicating strengthening bullish expectations in the perpetual futures market. Although futures open interest has recovered from recent lows, it remains below the highs seen in October.
Bitcoin reached its all-time high of $126,251 on October 6. Despite increased institutional adoption and the rise of crypto-friendly policies, the leading cryptocurrency is expected to see an overall decline of around 4% in 2025. Analysts point out that data to be released early in the year will show whether this rise is sustainable.
*This does not constitute investment advice.