Bitcoin hovered around $88,800 on Monday as global markets regained their risk appetite following record highs in gold and positive movements across Asian equities.
Ether surged back above $3,000, with XRP, Solana, and Dogecoin also experiencing slight increases after a turbulent period that saw drastic fluctuations in crypto prices, disconnected from stocks and commodities.
This more stable sentiment emerged as gold reached an all-time high of over $4,380 per ounce, spurred by rising expectations that the Federal Reserve may implement further rate cuts in 2026.
The metal is on track for its best yearly performance since 1979, bolstered by central bank purchases and consistent investment in gold-backed exchange-traded funds.
Asian stocks gained alongside the movement in precious metals. The MSCI Asia Pacific Index rose more than 1%, primarily driven by technology stocks, after a late-week rebound in U.S. equities helped soothe global markets. U.S. equity futures also showed positive signs.
Japan attracted attention after the Bank of Japan’s recent rate adjustment pushed government bond yields to the highest levels in years. The yen appreciated following officials’ warnings against excessive currency fluctuations, while increased yields solidified the departure from years of extremely lenient policies.
Crypto markets mirrored the general risk sentiment but remained sensitive. Traders noted that thin liquidity towards the year’s end and lingering leverage were factors limiting significant uptrends.
Data from K33 Research indicates that long-term bitcoin holders are approaching the conclusion of an extended selling phase, while institutional investors are starting to acquire bitcoin at a rate faster than miners can generate it. Corporate treasuries and ETFs have ramped up purchases despite prices declining by over 30% since October highs.
Crypto continues to be influenced by the broader macroeconomic environment—fueled by expectations for rate cuts and demand for gold as a safe haven, yet held back by the lingering effects of a steep decline in the fourth quarter.
