Bitcoin traded near $88,800 on Monday, as global markets again gravitated toward riskier assets, supported by gold hitting new record highs and Asian stocks rising.
Ether has rebounded above $3,000, while Ripple, Solana, and Dogecoin have all posted slight gains, following a period of sharp fluctuations that saw cryptocurrency prices move strongly away from the trajectory of stocks and commodities.
This relative calm in the market coincided with gold rising to a record high of over $4,400 an ounce, driven by increasing bets that the Federal Reserve would implement further interest rate cuts during 2026.
Gold and stocks support positive sentiment
Gold is on track to record its strongest annual performance since 1979, supported by continued buying from central banks and strong inflows into gold-backed exchange-traded funds.
In Asia, stocks continued their upward trend, mirroring gains in precious metals. The MSCI Asia Pacific Index rose by more than 1%, led by technology stocks, benefiting from the recovery in US stocks at the end of last week, which helped calm global market sentiment. US stock futures also posted further gains.
Japan remained in the spotlight following the Bank of Japan's recent interest rate hike, which pushed government bond yields to their highest levels in several years. Meanwhile, the Japanese yen strengthened after official warnings against excessive currency market movements, while the higher yields reinforced the shift away from years of ultra-loose monetary policy.
Cryptocurrencies: Between optimism and caution
The cryptocurrency market followed the general risk-averse tone, but remained fragile, with traders pointing to weak liquidity towards the end of the year and continued high leverage levels as factors limiting the market's ability to achieve strong upward waves.
Data from K33 Research indicates that long-term Bitcoin holders are nearing the end of an extended selling phase, as institutional buyers have begun absorbing supply at a faster rate than miners can produce new coins. Corporate treasuries and exchange-traded funds (ETFs) have also increased their purchases even after prices fell more than 30% from their October peaks.
In general, cryptocurrencies continue to draw their direction from the macroeconomic landscape, benefiting from expectations of interest rate cuts and the appeal of gold as a safe haven, but they remain constrained by the repercussions of the sharp decline the market experienced during the fourth quarter of the year.
