Bitcoin Surges to $90K as U.S. Equities Rally on “Turnaround Tuesday”
Bitcoin (BTC) has broken past the $90,000 mark for the first time since March 7, rising more than 5% in the past five days as it diverges from traditional equities, which have faced recent setbacks.
On March 7, the S&P 500 was trading above 5,700 points but has since dropped below 5,200, highlighting the contrasting movements between the largest cryptocurrency and the broader stock market.
Despite this impressive rally, bitcoin remains down by over 5% year-to-date. However, it has rebounded sharply from its April 8 low, when it was down nearly 20% for the year and over 30% below its all-time high of around $109,000 from January. This marked the steepest correction of the cycle, surpassing the August 2024 dip when the price fell to $49,000.
From a market structure viewpoint, the average perpetual funding rate across exchanges is currently negative. Perpetual funding rates indicate the cost of holding long or short positions in the futures market. When the rate is negative, it means short sellers are paying long holders, which can trigger a short squeeze as shorts are forced to cover their positions, potentially driving the price higher.
To further fuel the bullish momentum, Monday saw the largest single-day inflow into U.S. spot bitcoin ETFs since January 30, amounting to over $380 million. With the Nasdaq up more than 1% on what analysts are calling “Turnaround Tuesday,” bitcoin could see additional upside, although significant technical resistance levels remain ahead.
