Ravindu Madurajith Herath

The cryptocurrency market got off to a strong start to the week. Bitcoin rose to its highest level in nearly four weeks, driven by a general rally in risky assets, while investors continue to digest the global market reaction to the detention of Venezuelan President Nicolas Maduro.

Bitcoin, which saw a rise of over 3% today, briefly touched $94,000 before currently trading just below that level. Ethereum also followed with limited gains.

Bitcoin’s rise mirrored gains seen in gold, silver, and stocks. While the transfer of Maduro to the US following his arrest by US special forces increased geopolitical uncertainty, it did not weaken investor risk appetite. US stock markets closed higher, led particularly by technology stocks.

From a technical perspective, Bitcoin has risen above its 50-day moving average for the first time since the sharp correction that began in early October. This level is being watched as a key indicator that the market has found a more solid foundation. Bitcoin’s total gain since the beginning of the year has reached approximately 6%.

Market participants point out that Bitcoin has occasionally emerged as a safe haven, while at other times it has shown a higher correlation with riskier assets like stocks. Bitcoin, which fell 24% in the fourth quarter, significantly diverged from gold and silver during that period. The recent rise, however, has been driven by purchases from crypto-focused companies and weak selling pressure from miners and large funds. Sean McNulty, Head of Derivatives at FalconX APAC, notes that this dynamic has supported prices.

Bitcoin had been trading in a narrow price range for weeks, largely missing out on the stock market rally during the holiday season. The leading cryptocurrency, which closed 2025 down 6.5%, underperformed the overall market last year despite a more positive approach to the sector from the Donald Trump administration in the US. However, the inflow of $471 million into 12 spot Bitcoin ETFs traded in the US on January 2nd signals a shift in investor sentiment.

Activity is also noticeable in derivatives markets. According to CryptoQuant data, the funding rate for Bitcoin perpetual futures contracts has reached its highest level since October 18th. Timothy Misir, Research Director at BRN, commented, “This is a stabilizing market, not an accelerating one. The coming weeks will show whether this new capital can create lasting momentum.”

According to analysts, the market is focused on whether the $94,000 level can be permanently surpassed. On the downside, the $88,000 level is being watched as a critical support.

In the last 24 hours, approximately $297 million worth of positions were liquidated in the crypto market, with the majority of these being short positions.

*This is not investment advice.