Bitcoin Surges Past $90K as Regulatory Winds Shift - Bullish Momentum Returns
Regulatory optimism just lit a rocket under Bitcoin's price.
The flagship cryptocurrency smashed through the $90,000 barrier, marking a decisive recovery fueled by growing institutional confidence and a friendlier regulatory landscape. This isn't just a bounce—it's a statement.
The Catalyst: A Clearer Path Forward
For months, uncertainty was the only constant. Now, a wave of constructive dialogue between industry leaders and policymakers is cutting through the fog. Streamlined frameworks are emerging, bypassing the bureaucratic paralysis that once defined the space. The market is voting with its capital, and the verdict is overwhelmingly positive.
What the Rally Really Means
This move past $90,000 signals more than technical strength. It reflects a maturing asset class finally shaking off its regulatory shackles. Major funds and traditional finance players—once hesitant—are now re-evaluating their entry points, driven by the prospect of operating on a leveled, predictable playing field. The 'wild west' narrative is fading, replaced by one of structured growth.
The Road Ahead: Sustainable or Speculative?
While the sentiment is bullish, the climb needs substance to sustain itself. True, lasting adoption hinges on real-world utility, not just speculative fervor. The next test is whether this regulatory clarity translates into mainstream integration and innovation that outlasts the typical market cycle hype—something Wall Street still struggles to comprehend, often confusing a paradigm shift with a simple bubble. They'll probably try to sell you a Bitcoin ETF with a 2% management fee next.
The breakout is here. The question is what the industry builds on this new foundation.
Corporate stability reassures investors
The market also reacted positively to corporate measures. After Monday’s drop, driven by Strategy Inc.’s CEO suggesting a potential bitcoin sale to cover debts, the company established a $1.4 billion cash reserve.
Bloomberg reported that the cash reserve helps the company manage funds better and lowers the risk of a major market crisis. Spencer Hallarn from GSR added that this MOVE “calms some market fears,” giving cautious investors more confidence.
At the same time, Bitcoin is seeing steady long-term investment. A report from Glassnode and Fasanara Digital shows that more than $732 billion has flowed into Bitcoin since its 2022 low. This cycle’s inflows are bigger than all previous cycles combined, raising the realized market value to about $1.1 trillion. During this period, Bitcoin’s price climbed from $16,000 to a peak NEAR $126,000.
The report also shows that one-year realized volatility fell from 84% to around 43%, indicating growing liquidity, ETF participation, and larger cash-margined derivatives. Historically, volatility spikes mark market winters, but Bitcoin currently shows stability instead.
The report further shows that daily crypto liquidations have surged this cycle, almost tripling as rising open interest fuels a more Leveraged market. Average daily futures wipeouts jumped from $28M long and $15M short last cycle to $68M long and $45M short now. The trend peaked on Oct. 10’s “Early Black Friday,” when Bitcoin fell from $121K to $102K, triggering $640M in hourly long liquidations and a 22% plunge in open interest.
Technical indicators show recovery signs
Bitcoin also experienced a short squeeze, according to analyst Ardi on X: “Massive green buy pressure flooding the tape and forcing shorts underwater… The wall of shorts meant to cap price is now being consumed to feed the move.”
$BTC / Bitcoin
The short squeeze continues.
Look at the Delta in the bottom panel. Massive green buy pressure flooding the tape and forcing shorts underwater.
We're punching vertically through the blue liquidity bands, because sellers who stacked resistance above $91K are… pic.twitter.com/vM5jPpFN2X
Bitcoin has bounced back from lows of around $83,814 to highs of about $93,164. On the weekly time frame, it appears buyers have come back, but the price remains well below mid-2025 highs of $120,000.
Technical indicators show Bitcoin is slowly recovering. The MACD shows that momentum could be shifting from downward pressure to a more balanced trend. Meanwhile, the Relative Strength Index (RSI) sits at 41.37, which indicates that Bitcoin is close to its oversold levels but still has room for upward movement.
MACD follows price momentum trends, while the RSI shows whether an asset is overbought or oversold. Overall, these indicators show buyers are stepping back in and give hope for short-term gains.
Bitcoin’s bounce shows that investors are regaining confidence and rules around crypto are becoming clearer. Company cash reserves and steady capital coming in make the market feel more stable. Prices may still swing, but right now, Bitcoin looks like it’s on a steady recovery path.
Also Read: Bitcoin Comparatively Safer Amid Crypto Risks: Gary Gensler
