Bitcoin traded near $88,800 on Monday as global markets regained risk appetite, following record highs in gold and gains across Asian equities.
Ether climbed back above $3,000, while XRP, Solana, and Dogecoin also inched higher after a volatile period in which crypto prices moved largely independent of stocks and commodities.
Gold hit an all-time high above $4,380 an ounce, fueled by expectations that the Federal Reserve could implement additional rate cuts in 2026. The metal is on track for its strongest annual performance since 1979, supported by central-bank purchases and steady inflows into gold-backed ETFs.
Asian equities advanced alongside gains in precious metals. The MSCI Asia Pacific Index rose more than 1%, led by technology shares, following a rebound in U.S. equities late last week. U.S. equity futures were also higher.
Japan remained in focus after the Bank of Japan’s recent rate hike pushed government bond yields to multi-year highs. The yen strengthened after officials cautioned against excessive currency moves, while higher yields signaled a shift away from years of ultra-loose monetary policy.
Crypto followed the broader risk-on sentiment but remained fragile. Traders cited thin year-end liquidity and lingering leverage as factors restraining rallies.
Data from K33 Research shows long-term Bitcoin holders are approaching the end of an extended selling phase, while institutional buyers are absorbing Bitcoin faster than miners can produce it. Corporate treasuries and ETFs have continued purchases despite Bitcoin’s 30% drop from October highs.
Overall, crypto remains guided by macroeconomic trends—supported by rate-cut expectations and haven demand in gold—while tempered by the aftereffects of a steep fourth-quarter drawdown.
