Bitcoin surged past the $90,000 mark for the first time in nearly a week, marking a significant recovery from a prolonged selloff that lasted over a month. This upward movement in the cryptocurrency market coincided with a broader rally in risk assets, as easing volatility provided traders with the confidence to push prices higher.
Although the increase is described as modest, it indicates renewed interest in higher valuation levels, particularly as digital assets continue to align with equity markets. This development comes amid growing optimism that the Federal Reserve may soon start reducing interest rates, allowing market participants to reassess their positions.
Notably, BlackRock’s U.S. Bitcoin Exchange-Traded Fund (ETF) received new inflows, effectively breaking a cycle of redemptions that had persisted prior to this rebound. Despite the prevailing thin liquidity in the market as the Thanksgiving holiday approaches, the recent downtrend in volatility and the lack of any significant forced selling have emboldened bullish sentiment. Market participants are keen to determine if the worst of the prior downturn has now passed.
