The global cryptocurrency market turned broadly positive on Monday on hopes of a potential peace deal between Russia and Ukraine, which pushed oil prices higher. Bitcoin (BTC) reclaimed the $90,000 mark, while Ethereum (ETH) climbed to $3,000, posting gains of 2.88% and 3.69%, respectively.
The digital assets markets regained strength mid-holiday season, despite thin liquidity during this time. Major altcoins like XRP, BNB, Solana (SOL), Tron (TRX), Dogecoin (DOGE), and Cardano (ADA) also gained 3% over the last 24 hours, according to data from CoinDesk.
Crude Prices Rise As Trump Hosts Russia-Ukraine Peace Talks At Mar-A-Lago
The key catalyst behind the latest rally is the news that U.S. President Donald Trump has restarted peace talks between Russia and Ukraine. Following his meeting with Ukraine President Volodymyr Zelensky on Sunday at his Mar-a-Lago residence in Palm Beach, Florida, and a two-hour-long phone call with Russian President Vladimir Putin, Trump remarked that his administration has made a “lot of progress,” but there is yet to be significant breakthrough on the matter of critical territory settlement, which is expected to take several more weeks.
However, these discussions have pushed oil prices higher. The West Texas Intermediate (WTI) crude rose 1% to $57.24 per barrel. Meanwhile, Brent crude rose 0.80% to $60.81 per barrel.
On Sunday, Russia attacked the Kherson Combined Heat and Power Plant (CHPP), causing significant damage to one of the largest sources of heating to tens of thousands of residents in the Ukrainian city of Kherson. The attack resulted in the injury of one employee, who was hospitalized. The plant operated by Naftogaz, Ukraine’s largest national oil and gas company, has been repeatedly targeted by Russian forces, with a massive attack earlier this month leading to its complete shutdown that has left over 40,000 households in the region without heat.
In retaliation, Ukraine conducted a strike on the Syzran oil refinery in Russia’s Samara region, resulting in a fire in the facility and temporary power outages in the city of Syzran. The refinery operated by Rosneft has an annual processing capacity of 7 to 8.9 million tonnes of oil and is located approximately 1,200 kilometers east of Kyiv. The attack was carried out by unmanned aerial vehicles (UAVs), with multiple hits targeting other occupied territories, including a boat storage facility in Crimea, a repair unit in Luhansk, a pontoon crossing near Nikonorivka, and a drone storage facility in Donetsk.
While these actions have dented hopes of a quick resolution to the three-year-long war, Trump and Zelensky hinted at progress on the 20-point peace plan proposed by the White House in the summer.
Bitcoin’s Moves Above Key Averages Suggest Bulls Are Taking Back Control From Bears
Riya Sehgal, research analyst at Delta Exchange, noted that Bitcoin reclaiming key moving averages is a strong signal that momentum is returning to the market. The alpha cryptocurrency has moved above its 20-day EMA to test the 50-day EMA, suggesting that bulls are gradually taking control. She noted that with only a few days left until New Year’s Day, BTC needs a modest 6% rally to end 2025 on a positive note. With overall sentiment remaining cautious but bullish, traders are awaiting a pending confirmation of a price breakout.
Sehgal emphasized that liquidity remains the key driver of the digital asset market, with ETF inflows, stablecoin supply, and futures positioning playing a more significant role than news-led narratives, particularly amid thin year-end trading volumes.
On the four-hour chart, Bitcoin is trading between a support zone at $87,000 and $86,800, and resistance at $89,800 and $90,500. The 200-day SMA now serves as a key barrier for upward price movement.
At the time of writing, Bitcoin (BTC) is trading at $89,429 – up 1.92% in 24 hours.
