The global cryptocurrency market has shown signs of recovery, with Bitcoin regaining some of the losses incurred last week.
On Monday morning, Bitcoin’s price surged to $112,000, reversing much of the decline from the previous week.
The upward movement helped support a rally across the top ten cryptocurrencies by market capitalization, including Solana, Dogecoin, Cardano, Ethereum, and XRP. These altcoins saw price increases ranging from 3% to 4% over the past 24 hours.
As of today, the total market capitalization of all cryptocurrencies stands at approximately $2.23 trillion, marking a 2.35% increase in the past 24 hours.
Notably, nearly $260 million worth of short positions were liquidated in the last 24 hours, contributing to a larger $345 million total in liquidations, according to data from CoinGlass.
Despite the market volatility, there remains cautious optimism among investors. The surge in Bitcoin’s price has been attributed to increased buying pressure over the weekend, which helped reverse a significant part of the sell-off that occurred earlier in the week.
CME-based Bitcoin futures and options contracts experienced a notable decline in open interest between September 18 and September 26, falling by $4.33 billion.
Open interest refers to the total number of outstanding derivative contracts, which has decreased as some investors moved to close positions.
Crypto-native investors have remained optimistic, with a reported increase of $800 million in open interest. Rising funding rates also signal that traders are positioning for potential gains, even in the face of last week’s liquidation event.
The market remains divided on whether Bitcoin’s rally will continue or if the cryptocurrency has already reached its peak for this cycle. John Glover, Chief Investment Officer of Ledn, remains hopeful, forecasting that Bitcoin could rise to as high as $140,000-$145,000 by the end of 2025. However, he also cautioned that a bear market could follow soon after.
In contrast, some analysts believe the ongoing bull cycle, which began in November 2023, may have already peaked. “Right now, the price action suggests that the bull market may have already come to an end,” said one industry expert.
Despite these differing views, the overall mood in the market remains one of cautious optimism, particularly with Bitcoin’s recent resurgence. Traders are watching the price closely, as some expect a strong finish to the year.
One of the key factors supporting the positive sentiment around Bitcoin is growing institutional interest. Several major financial institutions, including Fidelity and Deutsche Bank, have predicted that Bitcoin could play a more significant role in global finance, potentially rivaling gold as a reserve asset. This idea is further bolstered by discussions within the U.S. government regarding the creation of a “Bitcoin strategic reserve.”
In March 2025, U.S. President Donald Trump said of his commitment to creating such a reserve, a move that has been widely discussed as a way to diversify U.S. reserves and further legitimize Bitcoin as a global asset. Treasury Secretary Scott Bessent confirmed last month that the administration is exploring budget-neutral methods for establishing the reserve.
Some industry observers, including Adam Mow, a former Bitcoin developer at Blockstream, believe the current market environment is at a tipping point. Mow, who has been advocating for the adoption of Bitcoin by nation-states, suggested that a significant price surge could be imminent, driven by institutional and sovereign interest. “We’re on the tail end of gradually, and we’re at the beginning phases of suddenly,” Mow said in an interview with the What Bitcoin Did podcast.
