Bitcoin surges to $90K, signaling potential end of prolonged bear market

Bitcoin surges to $90K, signaling potential end of prolonged bear market

Bitcoin's rise to $90,000 raises questions about sustained momentum, amid cautious trading behaviors and economic uncertainties impacting investor confidence.

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Bitcoin reached a price point exceeding $90,000 on Saturday, marking its highest level in three weeks. Despite this surge, caution prevails among traders, as evidenced by a lack of demand for leveraged positions and ongoing outflows from Bitcoin spot ETFs.

The price increase has stirred speculation about the potential to hit $95,000, but economic uncertainties, particularly following disappointing sales reports from Tesla, have tempered enthusiasm. Tesla's vehicle deliveries dropped by 15% in the fourth quarter compared to the previous year, contributing to a 2.5% decline in its stock price.

Market analysts noted that the Nasdaq index futures have struggled to maintain upward momentum, reflecting mixed sentiments in the tech sector. In contrast, shares of Baidu surged as the company announced plans for an IPO to spin off its AI chip unit, showcasing some optimism in the Chinese market.

Despite Bitcoin's recent highs, the futures basis rate remains below neutral levels, indicating a prevailing lack of confidence among bullish traders. The annualized premium over spot markets currently stands at 4%, highlighting concerns regarding the impact of potential US import tariffs on economic conditions.

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