Bitcoin experienced a remarkable surge, climbing beyond the $90,000 mark and fueling hopes for a market rebound before the year concludes.
The dominant digital currency saw an increase of up to 3.1%, breaking past $90,200 and marking a notable upward movement. This bullish momentum extended beyond Bitcoin, as Ethereum also gained nearly 4%, pushing its value above $3,000.
Previously, the cryptocurrency sector had shown limited activity while stock markets reached record highs ahead of Christmas. A prolonged sell-off that started in October—triggered by the liquidation of roughly $19 billion in leveraged positions—had suppressed investors’ willingness to take risks.
Throughout this phase, many market participants remained wary of any significant turnaround. Yet, recent price gains suggest that sentiment among traders is slowly shifting toward optimism.
Sebastian Bea, Investment Director at ReserveOne, attributed this positive movement to an uptick in short-term retail investors increasing their futures contract holdings.
Data from CryptoQuant reveals that Bitcoin’s funding rates have climbed to levels not seen since October 18th. This points to growing bullish sentiment within the perpetual futures market. Although open interest on futures has rebounded from recent dips, it still falls short compared to October’s peak figures.
Bitcoin hit its all-time high at $126,251 on October 6th last year. Despite greater institutional involvement and more crypto-friendly regulations emerging globally, forecasts suggest Bitcoin may face an approximate 4% decline throughout 2025 overall. Experts highlight that upcoming data releases early next year will be crucial in determining if this upward trend can be maintained long term.
Please note: This content does not constitute financial advice.