Bitcoin briefly reached $93,000 on Monday, driven by a renewed risk appetite among traders following the U.S. government’s actions against Venezuela. The cryptocurrency market showed positive momentum as major tokens experienced upward movements after a turbulent close to 2025.
Bitcoin’s price was hovering around $92,475, up approximately 1% over the last 24 hours and roughly 3% over the week. Ether was trading close to $3,160, also reflecting an uptick. XRP increased by about 3%, climbing above $2.10, continuing its strong performance into the new year. Solana stayed steady near $136, while Dogecoin eased slightly to $0.1488, although it remained up 17% over the week, marking the most significant gains among major cryptocurrencies.
The derivatives market further fueled this rally. Approximately $260 million in liquidations occurred within a 24-hour period, predominantly from short positions, which lost around $200 million as prices rose. This included over $121 million in shorts liquidated in just four hours, compared to less than $9 million for long positions. The data pointed to a potential overextension of bearish leverage in the market, especially on decentralized perpetual trading platform Hyperliquid, where shorts represented about 54.4% of all liquidated positions.
Accompanying the Bitcoin surge was a broader strength in risk assets, with Asian equities reaching record highs. Investors gravitated towards technology stocks, sustaining momentum from the previous year driven by advancements in artificial intelligence. Meanwhile, commodities exhibited notable price movements: Brent crude oil steadied after an initial drop linked to the situation in Venezuela, and gold surged above $4,400 an ounce, with silver seeing an even larger increase.
Market participants speculated that the start of the year brought a fresh wave of investment, seeking to capitalize on price inefficiencies in cryptocurrencies, which remain significantly lower than their historical highs while other asset classes approach record levels. Jeff Mei, chief operating officer at BTSE, indicated that traders are keenly taking advantage of these discrepancies.
The market’s movement coincided with significant political developments over the weekend, as the U.S. apprehended Venezuelan president Nicolás Maduro. Former President Donald Trump stated that U.S. ground troops wouldn’t be necessary as long as acting president Delcy Rodríguez adheres to U.S. demands. This geopolitical shift has contributed to the evolving landscape of market sentiments.
