Bitcoin hit a two-month high, finally joining the rally in high-risk assets and precious metals after a prolonged period of range-bound trading. This surge comes as investors increase their bets on alternative assets amid a geopolitical environment that supports this type of investment.
The largest cryptocurrency rose 2.4% to $96,348 in early trading Wednesday in Singapore, its highest level since November 16. Ethereum, the second-largest cryptocurrency by market capitalization, also jumped 5.1%.
This surge led to the liquidation of short positions worth over half a billion dollars in the options market, which had been betting on a decline in cryptocurrency prices.
Bitcoin has suffered losses of more than 6% since the beginning of 2025, after ending the previous year with a modest performance, remaining confined to a narrow trading range and largely unaffected by the surges seen in stock and precious metal markets.
He added that tensions in Venezuela, unrest in Iran, the controversy surrounding the independence of the Federal Reserve, and MSCI's decision to suspend its plan to exclude companies with significant investments in cryptocurrencies, such as Strategy, from its major indices, constitute a continuous stream of positive macroeconomic developments in favor of Bitcoin.
