Bitcoin has surged to a two-month high, finally participating in the broader rally seen in risk assets and precious metals. The original digital asset climbed as much as 3.9 per cent to $US97,694 on Wednesday (Thursday AEDT), marking its highest intraday level since November 14, when it last reached $US100,000. Ether, the second-largest token, also experienced a significant increase, surging as much as 6 per cent. The recent market activity has resulted in the erasure of over half a billion dollars in bearish crypto bets in the options markets.
Bitcoin’s ascent has pushed its price above its 100-day moving average. Chart-focused traders often interpret this movement as a positive indicator for future price increases. Previously, Bitcoin’s performance had been sluggish, with the token showing a loss of over 6 per cent for 2025 after a muted end to the previous year. It had been trading within a narrow range and largely unaffected by rallies in stocks and precious metals.
However, Bitcoin has exhibited signs of a potential breakout throughout January, and traders now anticipate that it may gain ground relative to other asset classes. Justin d’Anethan, head of research at Arctic Digital, suggests that, in the medium term, investors might increase their allocations to Bitcoin, driven by a “gold-catch-up narrative.” He also notes that other risk-on assets are currently performing well, so bitcoin could potentially catch up to those.
Arctic Digital is a research company providing insights into digital assets and blockchain technology. It helps investors understand the market trends and opportunities within the digital finance sector.
