Bitcoin has climbed above $US90,000 for the first time in nearly a week, recovering after a period of selling that lasted over a month. This resurgence coincides with a broad rally in risk assets and a decrease in market volatility, providing traders with renewed confidence to push prices higher. The modest gain has brought higher price targets back into consideration, with digital assets mirroring the performance of equities amid growing expectations that the US Federal Reserve may soon cut interest rates.
BlackRock’s US Bitcoin ETF has seen renewed inflows, ending a recent run of redemptions. Despite thin liquidity levels ahead of the Thanksgiving holiday, the ebbing volatility and lack of significant forced selling suggest that bullish investors are testing whether the worst of the recent downturn has passed. According to Adam McCarthy, a research analyst at Kaiko, the sharp price movement is likely connected to the holiday market conditions, where reduced liquidity amplifies the impact of trading activity.
Derivatives markets reflect this shift in sentiment, with Bitcoin perpetual futures showing increased demand for long positions. Data from Coinglass indicates moderate open interest and a positive funding rate for these contracts, suggesting that bullish bets have regained dominance after a period of negative sentiment earlier in the week. Call options at the $US100,000 strike price are attracting the most open interest, following a period where downside protection around $US80,000 and $US85,000 dominated the market, according to the Coinbase-owned crypto exchange Deribit.
