Bitcoin (BTC) rose more than 1% during Monday’s Asian trading session, positioning itself for a five-day winning streak — its longest run of consecutive gains since early October — as sentiment strengthened across risk assets and renewed institutional interest supported markets.The leading cryptocurrency climbed from around $92,500 to $93,600, briefly topping $94,000 intraday. The broader crypto market also posted broad-based gains, with major altcoins advancing alongside Bitcoin.Broader Market Strength Lifts Risk AssetsLarge-cap cryptocurrencies including XRP, Solana (SOL) and Ether (ETH) each logged moderate gains, generally in the 0.7%–1% range. Composite market gauges moved higher as well, signalling broad participation in the rally.“Market sentiment is improving, with both Bitcoin and Ethereum transitioning into bullish trend regimes,” said Markus Thielen, founder of 10x Research, in a market note. “We turned constructive following the late-December options expiry, anticipating that tax-loss selling would subside and that trading desks would regain flexibility to deploy risk into the new year.”Tax-Loss Selling Eases, Risk Appetite ReturnsBitcoin and many major altcoins remained under significant pressure through December as U.S. holders realized losses to offset capital gains, a common year-end strategy that typically depresses prices. With that dynamic fading, trading desks are actively redeploying capital early in 2026.Despite underperforming traditional assets through much of 2025 — with Bitcoin posting a modest annual loss and lagging the Nasdaq and precious metals — the latest price action suggests renewed confidence as the new trading year takes shape.Geopolitical Tension Spurs Safe-Haven DemandThe recent advance also coincided with heightened geopolitical risk following the U.S. capture of Venezuelan President Nicolás Maduro — an event that helped lift multiple asset classes simultaneously.“We view the simultaneous surge across multiple asset classes following U.S. military action as a textbook flight to quality,” said Ryan Lee, chief analyst at Bitget. “Safe havens such as gold and silver are rallying sharply as investors price in elevated geopolitical risk that could persist or escalate.”Markets also remain attentive to inflation and energy dynamics, with relatively contained oil prices helping limit immediate cost pressures even as broader risk sentiment shifts.ETF Flows Bolster Near-Term Technical BiasInstitutional interest appears to be returning, with U.S. spot Bitcoin ETFs recording significant net inflows — the largest single-day total in recent weeks. That flow dynamic has supported price structure and reinforced bullish technical setups.Thielen noted that the short-term bias remains constructive as long as Bitcoin holds above its 21-day exponential moving average, a key trend indicator closely watched by traders.Confirmation or Consolidation AheadWith Bitcoin tracking toward its longest winning streak in months, market participants are watching for confirmation of sustained momentum or signs of exhaustion as volume patterns and macro news flow continue to evolve. For now, improving sentiment, easing year-end distortions, and fresh institutional flows have tilted the near-term outlook toward cautious optimism as 2026 unfolds.
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