Bitcoin Breaks $90K as U.S. Equities Rally on “Turnaround Tuesday”
Bitcoin (BTC) has surged past the $90,000 threshold for the first time since March 7, gaining more than 5% in the past five days as it diverges from the performance of traditional equities.
On March 7, the S&P 500 was trading above 5,700 points but has since dropped below 5,200, underscoring the growing disparity between the movements of bitcoin and the broader stock market.
While the recent rally is encouraging, bitcoin remains down more than 5% year-to-date. Nonetheless, it has made a strong recovery from its low point on April 8, when it was down nearly 20% for the year and more than 30% below its January peak of $109,000. This marked the steepest correction of the cycle, eclipsing the drop in August 2024 when it fell to $49,000.
From a market structure perspective, perpetual funding rates across exchanges are currently negative, signaling that short sellers are paying long positions to maintain their trades. This setup could potentially spark a short squeeze, driving prices even higher as short sellers are forced to cover their positions.
Adding to the bullish sentiment, Monday saw the largest inflow into U.S. spot bitcoin ETFs since January 30, totaling over $380 million. With the Nasdaq up by more than 1% on what analysts are calling “Turnaround Tuesday,” bitcoin might continue its upward momentum, though it faces important technical resistance levels ahead.
