With Bitcoin closing in on $106K, Ether jumps 8% as bulls dominate the crypto space.

Cryptos Rally as Bitcoin Nears $106K Despite Moody’s Downgrade; Ether Leads with 8% Surge

Cryptocurrency markets showed strong resilience on Monday, with Bitcoin closing in on $106,000 and Ether surging 8%, even as traditional assets like stocks and gold stumbled following Moody’s downgrade of the U.S. credit rating.

The downgrade, citing ongoing fiscal challenges and political stalemate, weighed heavily on equities and pushed gold down nearly 7% from its recent highs. However, Bitcoin defied the broader risk-off sentiment, briefly climbing to $107,000 over the weekend before stabilizing near $105,000.

“Bitcoin’s weekend rally amid a cautious market environment highlights its growing appeal as a reliable store of value,” said QCP Capital via Telegram, noting steady institutional demand via spot bitcoin ETFs. Meanwhile, some leveraged long positions faced liquidations in the derivatives space.

Ether outperformed many peers, breaking above $2,900 in follow-through momentum from last week’s gains. Its strength has been linked to renewed interest in Ethereum staking and optimism following the Pectra upgrade, despite the absence of fresh news catalysts.

Other altcoins including Solana, XRP, BNB, and Dogecoin posted moderate gains between 2% and 4%, contributing to a nearly 2% rise in the CoinDesk 20 Index.

Aave’s token (AAVE) jumped over 25%, though this sharp move appeared speculative, with no recent protocol or governance announcements driving the price.

Market watchers are also noting a divergence between Bitcoin and gold, traditionally considered “safe haven” assets.

“Unlike past months where Bitcoin and gold moved in sync, Bitcoin is climbing while gold declines,” said Augustine Fan of SignalPlus. “Gold ETFs are seeing outflows as Bitcoin ETFs gain traction, supported by futures data from CME, pointing to evolving market dynamics and new relative value opportunities.”