Bitcoin traded near the $88,800 level on Monday, as global markets once again leaned towards high-risk assets, supported by gold hitting new record levels and a rise in Asian stocks.
The Ether currency has returned to rise above the $3,000 level, while both Ripple, Solana, and Dogecoin recorded slight gains after a period of sharp fluctuations that saw strong movements in cryptocurrency prices away from the trends of stocks and commodities.
This relative calm in the market coincided with gold rising to a record level exceeding $4,400 per ounce, driven by increasing bets on the Federal Reserve's direction toward further interest rate cuts in 2026.
With Bitcoin trading near $88,800 amid a positive market backdrop supported by gold and Asian equities, the importance of analyzing the changing relationship between high-risk assets is increasing. The Investing Pro platform available in Arabic allows you to understand these dynamics through WarrenAI, with discounts of up to 55% during the Internet Monday events.
Gold and stocks support the positive mood
Gold is on track to record its strongest annual performance since 1979, supported by ongoing purchases from central banks and strong inflows into gold-backed exchange-traded funds.
In Asia, stocks continued to rise in parallel with gains in precious metals, with the MSCI Asia-Pacific Index up more than 1%, led by technology stocks, benefiting from the recovery of US stocks at the end of last week, which contributed to easing tensions in global markets. US stock futures also recorded an additional increase.
Japan remains in the spotlight following the Bank of Japan's recent decision to raise interest rates, which pushed government bond yields to their highest levels in several years. In contrast, the Japanese yen strengthened following official warnings against excessive movements in the currency market, while higher yields bolstered the shift away from long years of very accommodative monetary policy.
Cryptocurrencies between optimism and caution
The cryptocurrency market has followed the overall risk tone but remains fragile, as traders noted weak liquidity as the year comes to a close, and continued high leverage levels, which limit the market's ability to achieve strong upward waves.
Data from K33 Research indicates that long-term Bitcoin holders are nearing the end of an extended selling phase, as institutional buyers begin to absorb the supply at a faster pace than miners can produce the currency. Additionally, corporate treasuries and exchange-traded funds have increased their purchases even after prices have dropped more than 30% from October peaks.
Overall, cryptocurrencies continue to draw inspiration from the macroeconomic landscape, benefiting from expectations of interest rate cuts and the attractiveness of gold as a safe haven, but they remain constrained by the fallout from the sharp decline the market experienced during the fourth quarter of the year.
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