FX.co ★ Bitcoin Rises to 2-Week High

Bitcoin surged nearly 2%, surpassing $89,500, and reaching a two-week high, indicating the possibility of a year-end rally. Other cryptocurrencies also experienced gains, with Ether and Solana climbing approximately 2%. Analysts attribute this rise to short-term retail traders expanding futures positions, fostering a generally optimistic outlook in the market. This sentiment is evidenced by the Bitcoin funding rate reaching its highest point since October 18, which suggests an increased demand for long positions. Although open interest in Bitcoin futures has bounced back from recent lows, it still lags behind the peaks observed during record highs in October. Despite an increase in institutional adoption and favorable policy developments under pro-crypto President Donald Trump, Bitcoin is projected to finish the year with a 4% decline. The broader crypto market faces challenges following a protracted selloff since October, exacerbated by the liquidation of $19 billion in leveraged positions.