With the revival of risk appetite in global markets, Bitcoin started the week near the $89,600 level. The rise seen in Asian stock markets and the all-time high recorded in gold indicate that investors are once again turning to risky assets, and the crypto market followed this general trend. However, analysts emphasize that the recovery in the crypto market remains fragile due to low liquidity and high leverage as the year draws to a close.
In addition to Bitcoin, Ethereum managed to climb back above the $3,000 level. In a market that has experienced sharp fluctuations in recent weeks, major altcoins such as XRP, Solana, and Dogecoin also recorded limited gains. Nevertheless, it is difficult to say that volatility has completely disappeared; more than $576 million worth of crypto positions were liquidated in the last 24 hours. This shows that sudden price movements are putting pressure, especially on leveraged transactions.
Eyes on gold
On the macro front, attention is focused on gold. Gold surged above $4,380 per ounce, reaching an all-time high, driven by increased demand for safe-haven assets. Geopolitical uncertainties and expectations that the Federal Reserve will continue interest rate cuts in 2026 are among the main factors supporting the rise in the precious metal. Gold is on track for its best annual performance since 1979, thanks to strong central bank purchases and continued inflows into gold-backed exchange-traded funds. Asian stocks also benefited from this positive sentiment. The MSCI Asia Pacific Index rose more than 1%, led by technology stocks. The recovery seen in US stock markets last week calmed global markets somewhat, and US futures indices also started the week higher. Japan, however, stood out as a separate case. Following the Bank of Japan's latest interest rate hike, government bond yields climbed to multi-year highs, while the yen strengthened. Warnings from officials against excessive currency fluctuations and rising bond yields clearly indicate that Japan is moving away from its long-standing loose monetary policy. The crypto market, while following the overall increase in risk appetite, is exhibiting a cautious outlook due to its own internal dynamics. Low year-end liquidity and the high leverage still present in the system are seen as obstacles to further gains. However, on-chain data points to a significant shift in long-term investor behavior. According to K33 data, long-term Bitcoin investors are nearing the end of a prolonged selling period. Simultaneously, institutional buyers are accumulating Bitcoin faster than miners are producing it. Institutional treasuries and Bitcoin ETFs have increased their purchases despite prices falling more than 30% from their October peaks.
