Bitcoin traded higher on Monday, hovering just below the key $90,000 level after briefly moving above it earlier in the session. However, the cryptocurrency once again struggled to hold gains above this threshold, mirroring several failed recovery attempts seen throughout December.
The world’s largest cryptocurrency was last up 2.2% at $89,663.6 as of 02:07 ET (07:07 GMT). Bitcoin has tested the $90,000 mark multiple times this month, only to pull back as buying momentum weakened and year-end trading activity remained subdued.
Bitcoin supported by Fed easing expectations
Bitcoin’s advance was supported by broader strength across global financial markets, as investors continued to price in expectations that the U.S. Federal Reserve could deliver further interest rate cuts in 2026 following its recent easing move.
Lower interest rate expectations typically benefit risk-sensitive assets, including cryptocurrencies, by reducing the appeal of cash and fixed-income instruments and encouraging flows into higher-yielding alternatives. Bitcoin’s rise also reflected an attempt to catch up with rallies seen across other asset classes.
Precious metals remained strong, with gold trading near record highs while silver and platinum reached fresh peaks. Investors continued to monitor geopolitical risks, including U.S.-led negotiations aimed at ending the war in Ukraine, which have yet to produce a clear breakthrough. This strength in safe-haven and alternative assets helped provide a supportive backdrop for crypto markets.
Despite the positive tone, Bitcoin’s upside remained limited. Traders cited profit-taking and thin liquidity as key constraints, while the $90,000 level continues to act as an important psychological and technical resistance. Market participants note that stronger catalysts will likely be needed to drive a sustained breakout.
Institutional participation has also been uneven. While institutional inflows supported crypto prices earlier in the year, some funds have shifted to a cautious stance ahead of key economic data releases expected early in the new year.
Altcoins post modest gains
Most major altcoins recorded modest gains on Monday. Ethereum, the second-largest cryptocurrency, rose 2.7% to $3,018.92, while XRP gained 1.5% to $1.90. Solana advanced 2.7%, although Cardano and Polygon edged slightly lower.
Among meme tokens, both Dogecoin and the $TRUMP token posted gains of around 1%.
