Bitcoin edged slightly higher on Monday, trading close to the $89,000 level after recording losses last week. The move came as global markets showed improved risk appetite, supported by growing expectations that the Federal Reserve could begin cutting interest rates in 2026.
The world’s largest cryptocurrency was last trading at $89,089.92 by early European hours. Despite the modest rebound, Bitcoin ended the previous week down 2%, continuing to move within a narrow range amid thin liquidity conditions.
Bitcoin struggles to regain momentum
Bitcoin has so far failed to make a decisive break above the key $90,000 psychological level. Traders point to easing demand from institutional investment vehicles and more cautious positioning ahead of the year-end holiday period as factors weighing on momentum.
Risk sentiment improved across other asset classes. Gold prices climbed to fresh record highs, driven by strong demand and rising confidence that interest rates will fall next year following softer-than-expected inflation data. Global equity markets also advanced, with Asian stocks opening higher alongside U.S. futures, as investors looked ahead to better liquidity conditions and a potential year-end rally.
Analysts say slowing inflows into crypto exchange-traded products and mixed sentiment toward digital assets are keeping Bitcoin and the broader market range-bound for now.
Hong Kong insurers may gain access to crypto investments
Separately, a report said Hong Kong’s insurance regulator is considering new rules that would allow insurers to allocate capital to assets such as cryptocurrencies and infrastructure. The proposed framework aims to steer funds toward sectors prioritised by the government.
Under the plan, crypto holdings would carry a 100% risk charge, while stablecoin investments would be assigned risk weights based on the fiat currencies they are linked to, according to details cited in the report.
Crypto prices today: altcoins remain subdued
Most major altcoins showed limited movement on Monday. Ethereum rose 1.7% to $3,032.92, while XRP traded largely flat near $1.92. Solana and Cardano posted small gains, whereas Polygon fell 2.1%.
Among meme tokens, both Dogecoin and $TRUMP were little changed, reflecting the broader lack of momentum across the altcoin market.
