Bitcoin, the world's most popular cryptocurrency, surged during Asian trading on Monday, breaking the $90,000 mark. Analysts see this as a strong indicator of a potential large-scale price breakout in the crypto market. This remarkable rise comes after a period of volatility, during which the cryptocurrency lagged behind the gains seen in traditional markets during the holiday season, which propelled global stock indices to record highs.
According to Bloomberg data, Bitcoin rose as much as 3.1% to surpass $90,200 in Singapore trading. This rally wasn't limited to Bitcoin; it extended to alternative cryptocurrencies as well, with Ethereum seeing a notable 4% increase, also exceeding the $3,000 mark, reflecting a general sense of optimism among investors in the sector.
Market context and recovery from the October shock
This price move comes at a sensitive time, as Bitcoin's price had previously been largely unaffected by the S&P 500's record highs before Christmas. The broader cryptocurrency market has been reeling from a weeks-long sell-off that began last October. That sell-off triggered the liquidation of $19 billion in leveraged positions, leading to a sharp market downturn and a general aversion to risk among traders.
However, current indicators point to a significant shift in sentiment. The Bitcoin Funding Rate (BFR)—a key metric reflecting cryptocurrency market sentiment and the cost of holding long positions—has reached its highest level since October 18, according to data from CryptoQuant. This surge is a clear indication of increased demand for bullish bets in the futures market and a return of risk appetite among both institutions and individuals.
Political and institutional influence
On a broader political and economic level, the US landscape plays a pivotal role in shaping the future of cryptocurrencies. Although Bitcoin experienced a decline of approximately 4% at the beginning of 2025, the outlook remains positive thanks to the increasing adoption of digital assets by major financial institutions. This is further bolstered by a series of political gains and regulatory promises associated with the administration of US President Donald Trump, known for his pro-cryptocurrency stance, which strengthens hopes for a more flexible regulatory environment that supports financial innovation.
Breaking through the $90,000 level represents a pivotal milestone that could pave the way for testing new historical levels, especially with the return of the positive correlation between the performance of cryptocurrencies and traditional financial markets, restoring confidence to investors who are anticipating the market's trajectory in the coming period.
