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Bitcoin Surges Above $90,000: Precious Metals Rally and Dollar Weakness

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Bitcoin Surges Above $90,000: Precious Metals Rally and Dollar Weakness

Key Takeaways

  • 1 On December 29, Bitcoin prices exceeded $90,000, and Ethereum rose above $3,000.
  • 2 At the time of writing, Bitcoin traded at $89,996, Ethereum at $3,037.
  • 3 The upward movement is linked to retail activity and short-term traders in the futures market.
  • 4 A sharp impulse triggered $169.86 million in liquidations, with $45.37 million in Ethereum.
  • 5 Gold rallied to $4,530 and silver to around $84, tied to expectations of a Fed chair change in 2026.
  • 6 The US Dollar Index (DXY) weakened noticeably in 2025, a factor market participants consider.

On December 29, Bitcoin surpassed $90,000 and Ethereum rose above $3,000. We analyze the growth drivers, links to gold and silver rallies, and expert insights.

On December 29, the price of the leading cryptocurrency surpassed the $90,000 mark, while Ethereum climbed above $3,000. At the time of writing, digital gold trades at $89,996, and Ether at $3,037, reflecting a short-term market rebound. Regardless of future trends, such spikes alter position distribution and liquidity in futures markets.

Bitcoin and Ethereum Growth

Breaking the $90,000 level reflected a coordinated response from market participants, resulting in the top 10 cryptocurrencies by market capitalization returning to positive territory. Altcoins also recovered recent losses, supporting an overall positive market outlook. At the same time, volatility remains evident, accompanying rapid price impulses.

Reasons Behind the Current Impulse

Sebastian Bea, Chief Investment Officer at ReserveOne Inc., linked the current momentum to retail participants' actions and short-term traders increasing positions in the futures market. This influx of short-term liquidity amplifies price movements and often triggers liquidation cascades. For instance, the sharp upward impulse caused $169.86 million in liquidations, with $45.37 million attributed to Ethereum.

Precious Metals Rally

The rally also affected precious metals: on December 28, silver prices reached a historic high, approaching $84, while gold hit a record, rising to $4,530. Extreme volatility in silver was observed over the weekend, heightening investor attention to parallel movements in metals and cryptocurrencies. Experts associate this rally with expectations of a Federal Reserve chair change in 2026.

Connection to Federal Reserve Policy

The market is focused on potential personnel and policy changes within the US regulatory sphere: experts note expectations of a Fed chair replacement in 2026 and discuss how this might impact monetary policy. In these discussions, the dollar’s depreciation and Fed policy shifts are viewed by participants as factors supporting demand for gold, silver, and cryptocurrencies.

Comparing Bitcoin with Precious Metals

From a long-term perspective, digital assets outperform metals: analyst Adam Livingston calculated that since 2015, Bitcoin has increased by 27,701%, while silver gained 405% and gold 283%. These figures highlight the difference in dynamics between fixed-supply assets and commodities with potentially increasing supply.

Dollar Weakness and Forecasts

Leading analyst Ethan Ralph noted a nearly 10% drop in the US Dollar Index (DXY) in 2025, making the dollar one of the weakest assets during this period. Former BitMEX CEO Arthur Hayes believes that the dollar’s decline and the Fed’s inflation policies could act as catalysts for gold, silver, and Bitcoin. Meanwhile, Bitwise Investment Director Matt Hougan expects Bitcoin to maintain high returns over the next decade, though major intra-year spikes are unlikely.

Why This Matters

For miners, even short-term price spikes in Bitcoin and Ethereum affect real revenue in rubles and withdrawal strategies, especially if operating from one to several hundred devices. Meanwhile, volatility and liquidation cascades can temporarily boost pool profitability or, conversely, reduce payout stability.

Simultaneously, the precious metals rally and dollar weakness influence overall market conditions: investors rebalance portfolios, impacting both futures and spot markets. Understanding the reasons behind these movements helps make timely decisions about holding or selling mined coins.

What to Do?

Monitor mining profitability in rubles, considering the current Bitcoin price and electricity tariffs. Regularly compare actual pool payouts with expected amounts, accounting for fees and withdrawal delays to avoid unexpected income gaps.

Assess volatility and liquidity risks: set rules for selling portions of mined coins to cover operating expenses and maintain reserves for price drops. If using leverage or engaging in margin trading, watch for margin calls and potential liquidation waves.

For a detailed review of recent price movements, see the publication on the December 26 price, as well as a deeper analysis of why Bitcoin has not held above $90,000. For a comparison of metals and cryptocurrencies’ influence, see the article on Bitcoin and precious metals.

Frequently Asked Questions

When did Bitcoin surpass $90,000 and what is its current trading price?

On December 29, Bitcoin prices exceeded $90,000. At the time of writing, Bitcoin was trading at $89,996, and Ethereum at $3,037.

What caused the recent impulse in the cryptocurrency market?

The article states that the impulse is linked to retail participants' actions and short-term traders increasing positions in the futures market, which led to a wave of liquidations amounting to $169.86 million.

How is the rally in gold and silver connected to Bitcoin's movement?

Experts associate the gold rally to $4,530 and silver to around $84 with expectations of a Federal Reserve chair change in 2026. The dollar's decline is also considered a factor influencing demand for these assets and cryptocurrencies.