Will Bitcoin See a New Year Bull Run? Experts Say “Watch Tomorrow”
Bitcoin, the leading cryptocurrency, briefly surged above $90,000 in morning trading, exciting investors, but experienced a sharp pullback later in the day.
Bitcoin, after testing above $90,200 with a 3.1% increase in the morning hours, fell back below $88,000.
The market volatility wasn’t limited to Bitcoin. Ethereum, while rising by up to 4% and surpassing the $3,000 level, later gave back its gains and began trading in negative territory.
While Bitcoin’s sideways movement before the Christmas holidays was noteworthy, the S&P 500, a benchmark for US stock markets, recorded record closing levels during the same period. The cryptocurrency market, however, is still struggling to recover from the effects of the sell-off that began in October and resulted in the liquidation of approximately $19 billion in leveraged positions. This process caused Bitcoin to remain below the level it started 2025 at.
Crypto analyst Simon Peters commented, “The crypto markets were quite sluggish during the holiday period.” Peters stated that the release of the Federal Reserve’s December meeting minutes tomorrow could be a significant catalyst for market upturns. The meeting may contain clues about potential interest rate cuts by Fed officials.
Despite a cautious stance among investors since October, a gradual shift in market sentiment is being observed. Sebastian Bea, investment director at ReserveOne Inc., said today’s rise “may have stemmed from short-term individual investors increasing their positions in futures.”
*This is not investment advice.