Bitcoin Hits $90K on Liquidity Hunt Amid Bullish New Year Rally Signals

• Bitcoin liquidity grab: Shorts liquidated above $90K fueled the bounce after range-bound trading between $85K-$90K.

• Funding rates spiked across exchanges, reflecting growing bullish positioning among speculators.

• Altcoins gained traction, with Canton up 10%, Midnight 9.4%, and Solana 3%, alongside accumulation in Chainlink and FET per Binance netflow data.

Bitcoin surges to $90K today amid liquidity hunts and bullish futures bets for 2025 New Year rally. Altcoins show early signs of momentum—explore drivers and market outlook now.

Why is crypto up today?

Why is crypto up today? Crypto markets climbed as Bitcoin advanced 2% to $90K in the Asian session on December 29, recovering from a quiet holiday period. This uptick followed a liquidity sweep of leveraged short positions above $90K, per CoinGlass data, after Bitcoin traded sideways between $85K and $90K. Upside liquidity at $90.9K suggests potential for further gains.

Source: CoinGlass

Bitcoin’s movement reflects typical market dynamics where price tests key levels to trigger liquidations, clearing the path for directional moves. Traders watched closely as U.S. equities hit records without a corresponding Santa rally in crypto, keeping sentiment cautious until this rebound.

What are Bitcoin funding rates indicating about market sentiment?

Bitcoin funding rates have surged across major exchanges, pointing to increasingly bullish positioning by futures speculators, as reported by CryptoQuant. This metric, which balances perpetual contracts between longs and shorts, turned positive sharply, suggesting bets on a potential breakout and New Year rally.

Source: CryptoQuant

Sebastian Bea, CIO of BTC treasury firm ReserveOne Inc., observed, “Monday’s uptick appears somewhat driven by short-term retail traders taking on growing positions in Futures.” This aligns with data showing speculators ramping up leverage ahead of year-end. Funding rates above zero mean longs pay shorts, a hallmark of optimism but also risk if momentum fades.

Meanwhile, altcoins began mirroring Bitcoin’s strength. Top performers included Canton (CC) with a 10% gain, Midnight (NIGHT) at 9.4%, and Solana (SOL) rising 3%. Accumulation trends emerged, particularly in Chainlink (LINK) and Artificial Superintelligence Alliance (FET), evidenced by positive Binance altcoin netflows.

Source: CryptoQuant

Despite lagging Bitcoin, the altcoin market cap broke key resistance levels. Analyst Ash Crypto noted this as a potential signal for renewed traction, even with the altcoin season index at a low 18. Sustained Bitcoin strength could rotate capital into alts in early 2025.

Source: X

Market participants eye upcoming FOMC minutes release on December 30, which could influence January rate cut expectations and introduce volatility into year-end trading.

Frequently Asked Questions

Why did Bitcoin jump to $90K on December 29?

The jump stemmed from a liquidity hunt liquidating shorts positioned above $90K during the Asian session, per CoinGlass data. Bitcoin had consolidated between $85K and $90K, and this sweep provided the catalyst for a 2% gain after holiday lull.

Is the crypto market gearing up for a New Year rally?

Signs point to optimism with Bitcoin funding rates rising sharply, indicating bullish futures bets from speculators, as tracked by CryptoQuant. Altcoin accumulation on Binance adds to the positive sentiment, though FOMC minutes could sway direction.

Key Takeaways

• Bitcoin liquidity dynamics: 2% bounce to $90K via short liquidations, with more upside liquidity at $90.9K.
• Bullish sentiment surge: Funding rates climbed, backed by speculator bets and expert views from ReserveOne CIO.
• Altcoin momentum building: Gains in CC, NIGHT, SOL; LINK/FET accumulation signals potential rotation.

Conclusion

Today’s crypto uptick, led by Bitcoin’s push to $90K amid liquidity grabs and elevated funding rates, underscores shifting market sentiment toward a possible New Year rally. Altcoins exhibit early accumulation trends despite low season index readings. With FOMC minutes due December 30, investors should monitor macro cues closely for sustained momentum into 2025.