Bitcoin Reaches $90K as U.S. Equities Bounce Back on “Turnaround Tuesday”

Bitcoin (BTC) has surged past $90,000 for the first time since March 7, marking a 5% gain over the past five days as the cryptocurrency’s trajectory diverges from that of traditional equities.

On March 7, the S&P 500 stood above 5,700 points but has since fallen below 5,200, underscoring the contrast in performance between bitcoin and the broader stock market.

Despite the recent upward movement, bitcoin is still down more than 5% year-to-date. However, the digital asset has rebounded significantly from its low point on April 8, when it was down nearly 20% for the year and over 30% below its all-time high of around $109,000 in January. That marked the steepest correction of the current cycle, outpacing even the August 2024 drawdown when bitcoin dropped to $49,000.

Looking at the market structure, the average perpetual funding rate across exchanges is currently negative. This indicates that short sellers are paying long holders to maintain their positions, which could set the stage for a potential short squeeze, driving prices higher.

In addition to the positive price action, Monday saw the largest single-day inflow into U.S. spot bitcoin ETFs since January 30, totaling over $380 million. With the Nasdaq rising more than 1% on what analysts are calling “Turnaround Tuesday,” bitcoin is poised to continue climbing, though it will encounter significant resistance levels in the near term.