Bitcoin Nears $88,800 as Risk Appetite Returns to Global Markets

Bitcoin hovered near $88,800 on Monday as global markets shifted back toward risk-taking, following record highs in gold prices and broad gains across Asian equities. The cryptocurrency market showed signs of stabilization after weeks of sharp volatility, with major digital assets rebounding alongside improving macro sentiment.

Ether climbed back above the $3,000 level, while XRP, Solana, and Dogecoin also posted modest gains. These moves followed a turbulent period in which crypto prices fluctuated independently of traditional assets such as stocks and commodities, highlighting the fragility of market confidence amid thin year-end liquidity.

The steadier tone in financial markets coincided with gold surging to a new all-time high above $4,380 per ounce. Gold’s rally has been fueled by rising expectations that the U.S. Federal Reserve could deliver additional interest rate cuts in 2026. Strong central bank demand and sustained inflows into gold-backed exchange-traded funds have positioned the metal for its strongest annual performance since 1979, reinforcing its role as a safe-haven asset.

Asian equities advanced in tandem with precious metals, with the MSCI Asia Pacific Index rising more than 1%. Technology stocks led the gains after a late-week rebound in U.S. equities helped calm global markets. U.S. stock futures also pointed higher, signaling continued optimism among investors.

Japan remained a focal point after the Bank of Japan’s recent rate hike pushed government bond yields to multi-year highs. The yen strengthened after officials warned against excessive currency fluctuations, while rising yields underscored Japan’s shift away from years of ultra-loose monetary policy.

Cryptocurrency markets followed the broader risk-on tone but remained cautious. Analysts cited lingering leverage and low liquidity as factors limiting upside momentum. According to K33 Research, long-term Bitcoin holders are nearing the end of an extended selling phase, while institutional demand continues to grow. Corporate treasuries and Bitcoin ETFs are reportedly absorbing supply faster than miners can produce it, even after prices fell more than 30% from October highs.

Overall, crypto markets continue to track macroeconomic trends, supported by expectations of future rate cuts and strong haven demand in gold, yet restrained by the aftereffects of a deep fourth-quarter correction.