On Monday, the cryptocurrency market saw a notable upswing as leading digital assets rallied in tandem with stock markets, signaling investor willingness to move beyond recent geopolitical tensions associated with U.S. military activity in Venezuela. Bitcoin (BTC) surged past the $94,000 threshold, a level not seen recently, supported by a 68% increase in trading volume over the previous 24 hours. This rise represents approximately a $6,000 gain for Bitcoin since the initiation of U.S. actions in Venezuela on Friday night.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, continued its positive trajectory into the new year, reaching an intraday peak of $3,261. Underpinning this movement was a substantial 78% jump in trading volume, indicating sustained buying interest. XRP, another prominent digital currency, experienced a remarkable 11.8% increase, reaching a price point of $2.37. Meanwhile, other cryptos like Solana (SOL) and Dogecoin (DOGE) registered moderate gains of 1.17% and 0.61%, respectively.
The broader cryptocurrency market has witnessed considerable liquidation activity: over $450 million was cleared in the past day, predominantly affecting bearish positions, with roughly $362 million of short bets being erased, data from Coinglass reveals. Additionally, Bitcoin's open interest—the total number of outstanding derivative contracts—increased by 2.87%, suggesting heightened market participation. On Binance, more than half of all traders holding open Bitcoin positions were long, according to the platform's Long/Short Ratio data.
Despite these upward price movements, market sentiment remains cautious. The Crypto Fear and Greed Index continues to register "Extreme Fear," highlighting persistent uncertainty among investors. Nevertheless, within the last 24 hours, notable winners among cryptocurrencies with market caps exceeding $100 million include Onyxcoin (XCN) surging nearly 50% to $0.008973, River (RIVER) climbing 27.29% to $16.49, and Virtuals Protocol (VIRTUAL) advancing 16.16% to $1.07.
The total capitalization of the global cryptocurrency market increased by 2.28% during the trading session, rising to $3.20 trillion. This strengthening in digital assets paralleled gains in the traditional equity markets, with the Dow Jones Industrial Average adding 594.79 points (1.23%) to close at a new record of 48,977.18. The S&P 500 and Nasdaq Composite also posted increases, closing up 0.64% and 0.69% respectively.
Energy stocks were particularly buoyant following remarks by President Donald Trump indicating that U.S. companies are preparing to invest billions in Venezuela’s oil sector in anticipation of the removal of President Nicolas Maduro. Major oil and gas corporations Chevron Corp. (CVX) and Exxon Mobil Corp. (XOM) closed up 5.10% and 2.21%. Concurrently, U.S. West Texas Intermediate crude oil prices surpassed $58 per barrel, reinforcing the energy sector's momentum.
Market analysts weigh in on the prospects for cryptocurrency prices in light of these developments. Lacie Zhang, a research analyst at Bitget Wallet, highlighted that fundamentals remain strong for cryptocurrencies despite elevated levels of uncertainty linked to geopolitical events. Zhang projected that Bitcoin has potential to advance toward $105,000, with Ethereum possibly testing the $3,600 level. These outlooks consider the balancing act between inflationary pressures and the deflationary design of cryptocurrencies, alongside the narrative of long-term adoption.
Michaël van de Poppe, a widely followed cryptocurrency commentator, observed that momentum is gradually returning to the cryptocurrency markets. He emphasized a critical support zone between $90,000 and $91,000 for Bitcoin; maintaining this area and establishing a higher low could pave the way for a challenge of the $100,000 mark.
Overall, the evolving macroeconomic environment, energy sector developments, and recent geopolitical shifts appear to be influencing both traditional equities and cryptocurrency markets, creating a complex but somewhat optimistic scenario for investors navigating these asset classes.