Bitcoin shot past $93,000 for a moment, stretching the year’s crypto rally even further and wiping out more than $260 million in derivatives liquidations. That sudden surge caught a lot of traders flat-footed, especially folks who were still betting on weakness after Bitcoin’s rollercoaster finish to 2025.

So, what drove the rally? A mix of short covering and traders suddenly willing to take more risks. Once Bitcoin broke through that stubborn $90,000 resistance, short sellers started scrambling to close their positions. That set off a chain reaction, pushing prices up even faster. Most of the pain hit people in perpetual futures those bearish bets were getting pretty crowded heading into the new year.

But it’s not just about the charts. The mood has shifted, too. Traders now see early 2026 as a time to reset, instead of just dragging out last year’s fatigue. With tax-loss selling out of the way and liquidity looking steadier, Bitcoin’s got a bit of breathing room again. Altcoins moved higher too, but let’s be real Bitcoin stole the show and reminded everyone who leads the market.

Still, that quick drop from $93,000 is a reminder that traders aren’t throwing caution to the wind. Volume dried up near the highs, and plenty of people took profits instead of chasing the move. There’s optimism, but nobody’s losing their head.

Right now, the big question is whether Bitcoin can stay above that old $90,000 resistance. If it does, this rally might have legs. If not, well, people will probably chalk it up as just another wild short squeeze not the start of something bigger.