Why is crypto up today? Bitcoin’s bounce, New Year buzz, and more

ambcryptoPublished on 2025-12-29Last updated on 2025-12-29

Abstract

Bitcoin surged 2% to $90K on December 29th, driven by a hunt for liquidity targeting leveraged shorts above that level. Despite missing the earlier Santa rally, BTC remained range-bound between $85K and $90K. Analysts suggest further upside is possible with liquidity pools near $90.9K. Futures market data shows increased bullish sentiment, with rising Bitcoin funding rates and speculative bets on a New Year rally. Altcoins like Canton, Midnight, and Solana also gained 3-10%, with accumulation trends noted in tokens like Chainlink and FET. However, the altcoin season index remains low at 18. Market attention now turns to the upcoming FOMC minutes release, which may influence rate cut expectations and trigger volatility.

Bitcoin jumped to $90K again during the Asian trading session on the 29th of December. This was a 2% upswing that followed a quiet holiday after BTC missed the Santa rally, which had lifted U.S. equities to record highs.

However, CoinGlass data showed that the recent bounce was driven by a liquidity hunt for leveraged shorts positioned above $90K.

Over the past few days, Bitcoin [BTC] has remained range-bound between $85,000 and $90,000, with price action driven by liquidity grabs.

With some upside liquidity in the pool at $90.9K, another push higher could be likely in the near term.

New Year rally expectations and altcoin bounce

But these could be more than just liquidity grabs. According to CryptoQuant, speculators on the Futures market have increasingly upped their bullish bets, perhaps eyeing a New Year rally.

The Bitcoin Funding Rate, which tracks crypto market sentiment, has surged recently, indicating an increasingly bullish positioning for a potential breakout.

The same stance was echoed by Sebastian Bea, CIO of BTC treasury firm ReserveOne Inc. He noted,

“Monday’s uptick appears somewhat driven by short-term retail traders taking on growing positions in Futures.”

The altcoin market also picked up some little traction from the BTC’s upswing. Amongst the top daily gainers were Canton [CC], Midnight [NIGHT], and Solana [SOL].

CC was up 10%, followed by NIGHT at 9.4% and SOL came in third at 3%.

There was also a significant altcoin accumulation trend, led by Chainlink [LINK] and Artificial Superintelligence Alliance [FET]. This was illustrated by the Binance Altcoin Netflow data.

However, the altcoins still lagged behind BTC, with the overall altcoin season index reading at 18. Still, the altcoin market cap broke a key resistance, which may signal a renewed traction, noted analyst Ash Crypto.

Looking forward, the FOMC minutes from the previous meeting are expected to be released on the 30th of December. It will set the pace of January rate cut expectations and trigger some market volatility on New Year’s Eve.

Final Thoughts

  • Bitcoin bounced 2% during the Asian session amid rising bullish bets for a New Year rally and liquidity hunt.
  • Select altcoins posted 3-10% daily price gains with an increasing accumulation trend.

Related Questions

QWhat was the main reason behind Bitcoin's 2% price increase on December 29th according to CoinGlass data?

AThe recent bounce was driven by a liquidity hunt for leveraged shorts positioned above $90K.

QWhich metric surged recently, indicating increasingly bullish market sentiment for a potential Bitcoin breakout?

AThe Bitcoin Funding Rate, which tracks crypto market sentiment, has surged recently.

QWhich three altcoins were among the top daily gainers following Bitcoin's upswing?

ACanton [CC], Midnight [NIGHT], and Solana [SOL] were among the top daily gainers.

QWhat upcoming event is expected to set the pace for January rate cut expectations and trigger market volatility?

AThe FOMC minutes from the previous meeting, expected to be released on December 30th.

QWhat does the altcoin season index reading of 18 indicate about the current market?

AThe reading of 18 indicates that altcoins still lag behind Bitcoin, as the index measures how much altcoins are outperforming Bitcoin.

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