Bitcoin edged slightly higher on Monday, holding near the $89,000 level after posting a weekly loss, as broader markets showed improved risk appetite amid growing expectations that the Federal Reserve will cut interest rates in 2026.
The world’s largest cryptocurrency was trading at $89,089.92 as of 02:25 AM US Eastern Time (07:25 GMT). Bitcoin fell about 2% last week and has continued to move within tight ranges amid weak liquidity.
Bitcoin has struggled to regain momentum, failing to decisively break above the key psychological $90,000 level, as traders point to reduced demand from institutional investment vehicles and a more cautious positioning ahead of the year-end holiday period.
By contrast, risk appetite improved across other markets. Gold prices surged to fresh record highs on Monday, supported by strong demand as expectations grew that the Federal Reserve will cut interest rates next year following weaker-than-expected inflation data.
Global equity markets also posted gains, with Asian stocks opening higher alongside advances in US futures, as investors anticipated improved liquidity and the potential for a year-end rally.
Analysts noted that slowing exchange-traded fund (ETF) flows and mixed sentiment toward digital assets remain key factors keeping the cryptocurrency market range-bound.
In a related development, Bloomberg reported that Hong Kong’s insurance regulator is proposing new rules that could allow insurers to allocate capital to assets including cryptocurrencies and infrastructure, as part of efforts to direct funding toward government-priority sectors. Under the proposal, the Insurance Authority would apply a 100% risk weight to crypto assets, while stablecoin investments would be subject to risk weights based on the underlying fiat currency, according to a presentation dated December 4 reviewed by Bloomberg.
As for altcoins, most remained range-bound on Monday. Ethereum, the world’s second-largest cryptocurrency, rose 1.7% to $3,032.92, while XRP was largely unchanged at $1.92. Solana and Cardano posted modest gains, while Polygon fell 2.1%.
