Bitcoin is on course for its longest daily winning streak in nearly three months, rising more than one percent during Asian trading on Monday as improving sentiment swept across the cryptocurrency market.

The world’s largest digital asset climbed from around $91,480 to above $92,500, briefly touching $93,000, putting it on track for a five-day run of gains, the strongest since early October. The move comes as investors return to crypto markets following a subdued December marked by tax-driven selling and weak North American trading volumes.

Broader Crypto Market joins the rally

Bitcoin’s advance was echoed across the wider digital asset space. Major cryptocurrencies including ether, solana, and XRP posted gains ranging from 0.7% to 1%, while broader market benchmarks reflected growing optimism.

The Global Finance Desk indexes rose around 1.5%, signaling a synchronized upswing rather than an isolated Bitcoin move.

“Market sentiment is clearly improving,” said Markus Thielen, founder of 10x Research. “Both Bitcoin and Ethereum are transitioning into bullish trend regimes as we move deeper into the new year.”

Tax-loss selling pressure fades

Analysts point to the end of year tax cycle as a key factor behind the rebound. Through much of December, crypto prices struggled as U.S.-based investors sold assets at a loss to offset capital gains elsewhere, a common practice known as tax-loss harvesting.

“We turned constructive following late-December options expiry,” Thielen said, noting that tax-related selling had weighed heavily on prices. “With that pressure now behind us, trading desks have greater flexibility to deploy risk.”

Bitcoin ended 2025 with a roughly 6% annual decline, underperforming assets such as gold, silver, and the Nasdaq index. Losses were particularly pronounced during U.S. trading hours in the final weeks of the year, underscoring how tax dynamics shaped market behavior.

Geopolitical tensions add safe-haven appeal

Bitcoin’s latest rise is also unfolding against a backdrop of heightened geopolitical stress, following the U.S. capture of Venezuelan President Nicolás Maduro. That development has sparked a broader flight toward perceived safe-haven assets, including precious metals and, increasingly, cryptocurrencies.

“We’re seeing a classic flight to quality,” said Ryan Lee, chief analyst at crypto exchange Bitget. “Gold and silver are rallying sharply, and Bitcoin is increasingly being treated as part of that defensive allocation.”

Lee added that while oil prices remain relatively contained near $60 per barrel, markets are beginning to price in longer-term risks around energy supply and liquidity conditions, which could keep financial volatility elevated.

ETF inflows strengthen the Bullish case

Another supportive factor has been renewed institutional interest via exchange-traded funds. The 11 U.S.-listed spot Bitcoin ETFs recorded more than $471 million in net inflows on Friday, the largest single-day total since mid-November, according to data from SoSoValue.

Early-year ETF demand has often been a leading indicator of broader market direction, particularly as traditional investors rebalance portfolios and re-enter positions after the holiday period.

Technical levels in focus

From a technical perspective, analysts say the near-term outlook remains constructive as long as Bitcoin holds above key support levels.

“As long as Bitcoin stays above its 21-day exponential moving average, the short-term bias remains to the upside,” Thielen said, pointing to momentum indicators that suggest further gains are possible if buying pressure persists.

Outlook: Cautious optimism returns

While volatility remains a defining feature of crypto markets, the combination of fading tax pressures, rising ETF inflows, and renewed safe-haven demand has improved the near-term tone. For now, Bitcoin’s ability to sustain its rally above the $90,000 level will be closely watched as investors assess whether this early-2026 momentum can extend further into the year.

If the current streak holds, it would mark Bitcoin’s strongest run in months, and potentially signal a broader reset in crypto market sentiment after a challenging end to 2025.