Bitcoin surged to a fresh 2026 high of US$93,000 in early trading on Monday, extending a new year rally that rippled across the broader cryptocurrency market and triggered more than US$260 million in liquidations, according to market data cited by CoinDesk.
The world’s largest cryptocurrency touched the intraday peak before paring some gains, but sentiment across digital assets remained firmly bullish as traders increased leverage and rotated into higher-risk positions. The move marked a continuation of momentum that began in late December, driven by strong institutional demand, improving regulatory clarity in key markets and renewed inflows into crypto-linked investment products.
Data from derivatives tracking platforms showed that the bulk of the liquidations came from short positions, as bearish traders were forced out of the market during Bitcoin’s rapid climb. Long liquidations were comparatively limited, suggesting that the rally caught many skeptics off guard rather than reflecting an overheated market flush. Bitcoin accounted for a significant share of the wiped-out positions, with major altcoins such as Ether, Solana and Avalanche also recording sharp moves higher alongside elevated volatility.
Market analysts pointed to thin liquidity conditions typical of the early January period as a factor amplifying price swings. With many traditional financial markets still easing back into full activity, relatively modest buying pressure was enough to push prices higher and accelerate stop-loss triggers on leveraged trades. That dynamic contributed to the scale of liquidations seen during the rally.
Beyond short-term trading dynamics, the broader backdrop for crypto has improved notably compared with the same period a year earlier. Spot Bitcoin exchange-traded funds continue to attract steady inflows, reinforcing the role of institutional investors in supporting prices. At the same time, expectations of monetary easing later in 2026 have strengthened the appeal of alternative assets, including cryptocurrencies, as investors position for a lower interest-rate environment.
Bitcoin’s move toward the $93,000 level also reignited debate over near-term resistance and whether the market is due for a consolidation phase after weeks of gains. Some analysts cautioned that while the trend remains positive, rapid advances accompanied by rising leverage can increase the risk of sharp pullbacks if sentiment shifts. Others argued that the relatively orderly nature of the rally, combined with strong spot demand, suggests underlying support remains intact.
Altcoin markets broadly followed Bitcoin’s lead, with several large-cap tokens posting mid-single-digit gains on the day. Trading volumes rose across major exchanges, reflecting renewed participation from both retail and institutional players as the year gets underway.
While Bitcoin failed to hold above US$93,000 for long, its ability to revisit record-adjacent levels so early in the year underscores the resilience of the current bull cycle. Market participants will now be watching closely to see whether the rally can be sustained as liquidity normalises and macroeconomic data begin to shape risk appetite in the weeks ahead.
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