Bitcoin climbed above $90,000 during Asian trading hours, hinting at a potential breakout. This move comes after the digital asset missed out on the Christmas rally that propelled stock markets to record highs.
Data showed that Bitcoin rose as much as 3.2% in Singapore markets on Monday, surpassing $90,300. Other cryptocurrencies also advanced, with Ethereum gaining up to 4% and breaking above the $3,000 level.
While the S&P 500 index reached a record closing high just before Christmas, Bitcoin's price had remained relatively stagnant. The broader cryptocurrency market has yet to fully recover from a weeks-long sell-off that began in October, which triggered the forced liquidation of approximately $19 billion in leveraged positions.
That event dealt a severe blow to the market, and traders have since been hesitant to place large bets on a rebound. However, there now appear to be early signs of a shift in market sentiment.
Monday's price increase "seems partly influenced by short-term retail investors increasing their positions in the futures market," said Sebastian Bea, Chief Investment Officer at ReserveOne Inc.
According to data from CryptoQuant, the Bitcoin funding rate—a key gauge of sentiment in the crypto market—has risen to its highest level since October 18th. This indicates growing demand for bullish bets in the perpetual futures market.
