Bitcoin traded near $88,800 on Monday as global markets plunged back into risk as gold prices hit a record high and Asian stocks rose.
Ethereum rallied back above $3,000, while XRP, Solana and Dogecoin also edged higher, after cryptocurrency prices moved wildly independent of stocks and commodities.
The tone stabilized as gold prices rose to a record high above $4,380 an ounce as bets grew that the Federal Reserve would cut interest rates further in 2026.
Gold is on track for its strongest annual performance since 1979, supported by central bank purchases and continued inflows into gold-backed exchange-traded funds.
Asian stocks rose along with gains in precious metals. A rebound in U.S. stocks late last week helped calm global markets, with the MSCI Asia Pacific index rising more than 1%, led by technology stocks. U.S. stock futures were also higher.
Japan remains in focus after the Bank of Japan’s recent interest rate hikes pushed government bond yields to multi-year highs. The yen strengthened after officials warned of excessive currency volatility, while rising yields reinforced a shift from years of ultra-easy policy.
Cryptocurrencies followed the broader risk tone but remained vulnerable. Traders pointed to thin liquidity and lingering leverage at the end of the year as factors dampening the rally.
Data from K33 Research shows that a long-term selling phase among long-term Bitcoin holders is nearing its end, while institutional buyers have begun to absorb Bitcoin faster than miners can produce it. Corporate Treasuries and ETFs have increased purchases even as prices are down more than 30% from their October highs.
Cryptocurrencies continue to take cues from the macro backdrop – helped by interest rate cut expectations and safe-haven demand for gold, but dampened by the hangover from the sharp fourth quarter decline.