Bitcoin traded near $88,800 on Monday as global markets turned risk-oriented following a record high for gold and a rally across Asian stocks.
Ether rose again above $3,000, while XRP, Solana, and Dogecoin also edged higher after a volatile period in which crypto prices fluctuated rapidly, unrelated to stocks or commodities.
Market conditions stabilized as expectations grew that the US Federal Reserve would cut interest rates further in 2026, and gold rose to a record high of over $4,380 per ounce.
The metal is on track to post its best annual performance since 1979, supported by central bank buying and sustained inflows into gold-backed exchange traded funds (ETFs).
Asian stocks also rose in line with movements in precious metals. The MSCI Asia-Pacific index rose more than 1% led by tech stocks as a rally in US stocks late last weekend helped calm global markets. US stock futures also rose.
The focus on Japan continued even after the Bank of Japan’s recent interest rate hike pushed government bond yields to multi-year highs. The yen strengthened after authorities warned of excessive currency fluctuations, while rising yields reinforced a shift away from years of ultra-easy monetary policy.
Cryptocurrencies followed a broader risk tone but remained vulnerable. Traders said thin liquidity at the end of the year and prolonged leverage were factors that held back gains.
According to data from K33 Research, long-term Bitcoin holders are nearing the end of a prolonged sell-off phase, while institutional investors are beginning to absorb Bitcoin faster than miners can produce it. Corporate bonds and ETFs are increasing purchases even after prices have fallen more than 30% from their October highs.
Cryptocurrencies continue to take cues from the macro environment, supported by interest rate cut expectations and flight demand for gold, but held back by the aftermath of Q4’s significant drawdown.