Bitcoin (BTC) Price: BTC Hits Highest Level Since January After 7% Gain

TLDR

• Bitcoin rose about 7% to above $87,000, its highest level since January.
• Trump’s administration proposed $5 billion to rebuild Gulf energy sites damaged in the Iran war.
• Roughly $919 million in crypto short positions were liquidated as BTC broke through resistance.
• Glassnode says Bitcoin remains above its true market mean, a level tied to stronger market conditions.
• Analysts are watching $90,000 to $100,000 next, while Santiment flags rising FOMO and leverage.

Bitcoin price climbed above $87,000 on Monday, gaining about 7% in 24 hours. The move pushed the price to its highest level since January.

The rally followed a mix of factors. These included falling oil prices, lower Treasury yields, and fresh demand for spot Bitcoin ETFs.

Risk sentiment also improved after the Trump administration outlined new plans for the Middle East. The news helped lift Bitcoin along with other risk assets.

Trump’s Gulf Reconstruction Plan

The Trump administration proposed $5 billion to start an energy investment fund for the Gulf region. The plan targets infrastructure damaged during the seven-month war between the US and Iran, according to the Wall Street Journal.

The fund would ask for matching contributions from Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Oman, Iraq, and Jordan. It would also fund new routes meant to reduce reliance on the Strait of Hormuz.

The plan focuses on repairing damaged energy sites and building alternative oil and gas transport paths. Oil prices affect inflation expectations, which in turn can move Treasury yields and risk assets like Bitcoin.

Monday’s Bitcoin rally lined up with a drop in oil prices and softer bond yields. Both trends tend to support demand for higher-risk assets such as cryptocurrencies.

The price increase also triggered a wave of short liquidations. About $919 million in crypto short positions were closed during the rally.

Bitcoin Price on CoinGecko

Bitcoin short positions made up more than $557 million of that total. When short positions close, traders must buy back Bitcoin, which can push the price up further.

Spot Bitcoin ETF inflows added more support during the session. Several crypto-linked stocks also moved higher alongside the BTC price.

Blockchain analytics firm Glassnode weighed in on the price action on X. Glassnode said Bitcoin remained above its true market mean and short-term holder cost basis, adding that holding these levels has historically lined up with stronger market conditions.

Watching $90,000 and Beyond

Attention has now turned to the $90,000 area as the next test for Bitcoin. Crypto analyst Michaël van de Poppe pointed to $90,000 to $91,000 as the next zone to watch, writing in a post on X alongside a BTC/USD daily chart that stronger momentum could push the price toward $98,000 to $100,000.

Prediction-market traders share a similar outlook. Polymarket data shows a 42% chance that Bitcoin reaches $100,000 before the end of 2026.

Whether the rally continues depends on spot demand holding up after the short squeeze. Bitcoin will also need to absorb new leverage as traders position around $90,000.

Santiment reported that Bitcoin FOMO has hit its highest level since 2024. Open interest rose 7.6% to about $156 billion, pointing to fresh leverage building in the market.

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