Here's something interesting about markets: sometimes they just decide they're done worrying about geopolitical chaos. That appears to be what happened Monday, as cryptocurrencies rallied sharply alongside stocks while investors essentially looked at the Venezuela situation and said "we're moving on."
The numbers tell the story. Bitcoin (BTC) climbed 1.24% to $93,914.81 by 8:15 p.m. ET, while Ethereum (ETH) gained 1.20% to reach $3,224.39. But the real standout was XRP (XRP), which surged 11.80% to $2.37. Solana (SOL) added 1.17% to trade at $137.74, and Dogecoin (DOGE) picked up 0.61% to hit $0.1521.
Short Sellers Take A Beating
Bitcoin pushed above $94,000 with conviction, backed by a 68% spike in trading volume over the last 24 hours. The apex cryptocurrency has now rallied roughly $6,000 since U.S. military operations began in Venezuela Friday night. Apparently, initial fears about geopolitical instability have given way to... optimism? Or at least a willingness to buy the dip.
Ethereum kept its New Year momentum going, touching an intraday high of $3,261. The buying pressure was real, evidenced by a 78% jump in trading volume.
The carnage for bearish traders was substantial. According to Coinglass, over $450 million was liquidated from the cryptocurrency market in the last 24 hours, with roughly $362 million coming from short positions that got erased. That's what happens when you bet against a rally that refuses to quit.
Bitcoin's open interest climbed 2.87% over the same period. More than 50% of Binance traders with open BTC positions were long, according to the Long/Short Ratio. Meanwhile, the Crypto Fear and Greed Index showed that "Extreme Fear" sentiment continued to dominate the market. So we've got fearful sentiment but aggressive buying. Markets are weird like that.
The day's biggest winners among cryptocurrencies with market caps above $100 million included Onyxcoin (XCN), which rocketed 49.82% to $0.008973, River (RIVER), up 27.29% to $16.49, and Virtuals Protocol (VIRTUAL), which gained 16.16% to $1.07.
The global cryptocurrency market capitalization increased 2.28% over the last 24 hours to reach $3.20 trillion.
Equities Join The Party On Oil Optimism
Stocks had their own rally Monday. The Dow Jones Industrial Average surged 594.79 points, or 1.23%, closing at a record high of 48,977.18. The S&P 500 rose 0.64% to end at 6,902.0, while the tech-heavy Nasdaq Composite gained 0.69% to close at 23,395.82.
Energy stocks led the charge after President Donald Trump announced that U.S. companies are preparing to invest billions in Venezuela's oil industry following Nicolas Maduro's ouster. Chevron Corp. (CVX) and Exxon Mobil Corp. (XOM) closed up 5.10% and 2.21%, respectively. Oil prices gained alongside the enthusiasm, with U.S. West Texas Intermediate crude climbing above $58 a barrel.
What's Next For Bitcoin?
Lacie Zhang, Research Analyst at Bitget Wallet, told MarketDash that cryptocurrency fundamentals remain constructive despite "elevated uncertainty" tied to geopolitical developments.
"Bitcoin has room to push toward $105,000, while Ethereum could test $3,600, as traders balance inflation risks with crypto's deflationary characteristics and long-term adoption narrative," Zhang predicted.
Michaël van de Poppe, a popular cryptocurrency commentator, noted that "slowly, but surely," the momentum is coming back into the markets.
"There's one crucial level which must hold: the area around $90-$91,000. If that holds and a higher low is established, we're in for a test at $100,000," the analyst predicted.
So the setup is this: Bitcoin has rallied hard off recent lows, shorts are getting squeezed, sentiment is still fearful despite the gains, and analysts see a path to $105,000 if key support levels hold. Whether that plays out depends on whether markets can continue ignoring geopolitical noise and focus on fundamentals. Monday suggested they're willing to give it a shot.
