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Bitcoin surged above $90,000, strengthening expectations of a potential recovery before the new year.
The leading cryptocurrency, Bitcoin, surged by as much as 3.1%, surpassing the $90,200 level and signaling a significant breakout. The optimism in the market wasn’t limited to Bitcoin; Ethereum also climbed nearly 4%, rising above $3,000.
The crypto market had remained relatively stagnant during the period when stocks hit pre-Christmas records. A weeks-long sell-off, which began in October with the liquidation of approximately $19 billion in leveraged positions, had dampened investor risk appetite.
During this period, many traders were cautious about a major reversal. However, the recent rise indicates that the market sentiment is gradually changing.
ReserveOne’s investment director, Sebastian Bea, stated that the movement stemmed from increased positions held by short-term retail investors in futures contracts.
According to CryptoQuant data, Bitcoin funding rates have risen to their highest level since October 18th, indicating strengthening bullish expectations in the perpetual futures market. While futures open interest has recovered from recent lows, it remains below the peaks seen in October.
Bitcoin reached its all-time high of $126,251 on October 6th. Despite increased institutional adoption and the rise of crypto-friendly policies, the leading cryptocurrency is still projected to decline by approximately 4% overall in 2025. Analysts emphasize that data to be released in the early days of the year will show whether this rise is sustainable.
*This is not investment advice.
cointelegraph.com
cryptopolitan.com
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