On Monday, Bitcoin hovered around $88,800 as global markets embraced risk once again, following unprecedented peaks in gold prices and positive movements in Asian stock markets.
Ether surged past the $3,000 mark, while other cryptocurrencies like XRP, Solana, and Dogecoin also experienced slight increases after a period of significant volatility that saw crypto values fluctuate independently from stocks and commodities.
This more stable sentiment coincided with gold reaching an all-time high of over $4,380 per ounce. This surge was fueled by increasing speculation that the Federal Reserve may implement further interest rate cuts in 2026.
The precious metal is on track for its best annual performance since 1979 due to central bank purchases and consistent inflows into gold-backed exchange-traded funds (ETFs).
Asian equities rose alongside the uptick in precious metals. The MSCI Asia Pacific Index gained over 1%, primarily driven by technology stocks. A rebound in U.S. equities late last week contributed to a sense of calm across global markets. Additionally, U.S. equity futures showed positive movement.
Japan attracted attention after the recent interest rate hike by the Bank of Japan led to government bond yields reaching multi-year highs. The yen appreciated as officials cautioned against excessive fluctuations in currency value; meanwhile, higher yields marked a departure from years of extremely loose monetary policy.
The cryptocurrency market mirrored this broader risk appetite but remained somewhat vulnerable. Traders noted that low liquidity typical at year-end combined with ongoing leverage issues were limiting potential rallies.
K33 Research indicates that long-term Bitcoin holders are nearing the conclusion of an extended selling phase while institutional investors have started acquiring Bitcoin at a faster pace than miners can supply it. Corporate treasuries and ETFs have ramped up their purchases even amidst a decline exceeding 30% from October’s peak prices.
The cryptocurrency sector continues to be influenced by macroeconomic factors—bolstered by expectations for interest rate cuts and safe-haven demand for gold—but remains constrained due to lingering effects from a significant downturn experienced during the fourth quarter.