Bitcoin’s price surged to $80,000 on Monday, marking its strongest performance in three months and leading to $270 million in liquidations across leveraged short futures contracts. This rally aligns with a significant jump in tech stocks, which have reached all-time highs, reflecting a broader risk-on market sentiment.
The recent increase in Bitcoin’s value is supported by three critical indicators suggesting further upward momentum. While Bitcoin is still 36% below its peak of $126,200 reached in October 2025, its price trajectory has shown a tight correlation with the Nasdaq 100 Index, which is nearing unprecedented heights.
In addition to the impressive price spike, mining profitability has significantly improved. As of now, Bitcoin miners can expect about $37 in daily returns for every pentahash per second, a level that has not been observed since late January. This uptick in profitability is particularly notable considering the total hashrate has dropped by 13% over the past quarter. In response to declining market conditions, major mining firms have liquidated portions of their Bitcoin reserves to alleviate debts and channel investments into AI data centers.
Concerns about potential sell pressure from miners were initially prevalent, especially as miner reserves had reached 10-year lows, with Riot Platforms recently reporting a sale of $250 million worth of Bitcoin. However, the improvement in mining profitability is beginning to allay fears of an oversupply in the market.
Bitcoin’s dominance in the cryptocurrency space, excluding stablecoins, has also risen to its highest level since July 2025. This reflects a shift away from struggling altcoins, many of which have suffered losses due to diminished demand and heightened negative sentiment surrounding decentralized finance applications, as well as notable security breaches.
A report shows that combined assets managed by Bitcoin and Ether exchange-traded products have reached $147 billion, significantly outpacing those of other altcoins like Solana and XRP, which have not exceeded $3 billion each. Expectations for institutional interest in alternative cryptocurrencies have proven overly optimistic, as Bitcoin and Ethereum now account for 95% of the market share in this area.
Additionally, there has been a notable shift in options trading sentiment. On Monday, demand for call options—betting on price increases—exceeded that for put options, marking a substantial change from the previous weekend’s bearish metrics. This suggests an improvement in trader sentiment, with fears of impending price declines subsiding.
The positive sentiment was further bolstered by a significant flow of $630 million into US-listed spot exchange-traded funds, which has likely contributed to the overall favorable atmosphere surrounding Bitcoin. With factors like increased mining profitability, enhanced market dominance over altcoins, and bullish options data in play, the possibility of Bitcoin reaching $85,000 remains firmly on the table.
