Bitcoin rallied strongly during Asian trading and broke through the $90,000 mark, which could signal the start of a recovery after the most famous cryptocurrency missed the so-called “Christmas rally” that pushed stock markets to record highs.
Bitcoin rose by 3.1 percent and reached more than $90,200 in Singapore, while Ether recorded a growth of about 4 percent and crossed the psychological limit of $3,000, writes Bloomberg.
Unlike the stock market, where the S&P 500 hit all-time highs before Christmas, Bitcoin was largely stagnant during that period. The crypto market is still recovering from a multi-week selloff that began in October, when about $19 billion worth of leveraged positions were liquidated.
First signs of mood swings
That selloff rocked the market, and investors have been wary of higher returns in risky assets ever since. However, the first signs of a change in mood among market participants are now appearing.
The growth was “driven in part by short-term retail traders taking increasingly large futures positions,” said Sebastian Bea, ReserveOne Inc.’s chief investment officer.
Interest in bullish bets is growing
According to data from analytics platform CryptoQuant, the Bitcoin funding rate – one of the key indicators of market sentiment – reached its highest level since October 18, Investor me reports. This indicates a growing demand for so-called bullish bets in the futures market.
Open interest in Bitcoin futures has also rebounded from recent lows, but is still “well below previous highs that coincided with Bitcoin’s record highs in October,” Bea added.
Recall that on October 6, bitcoin reached an all-time high of $126,251.
