Bitcoin Kicks Off the New Year with Robust Momentum

Bitcoin CRYPTO000BTC

Bitcoin has entered the new year demonstrating significant strength, marking its most substantial single-day gain in over a month. The leading cryptocurrency advanced by approximately 3.5% on Monday, pushing its price above $94,000 to reach a six-week high. This performance represents a notable shift from the challenging market conditions that characterized the end of 2025.

On-chain analytics reveal a pivotal change in market dynamics. Long-term Bitcoin investors have ceased their selling activity, according to data from analyst Darkfost, with roughly 10,700 BTC transitioning into the status of coins held for the long term. Matthew Sigel of VanEck interprets this development as the conclusion of "the most significant selling pressure from this cohort since 2019." Ki Young Ju, CEO of CryptoQuant, corroborates this view, confirming that long-term holders have stopped distributing their coins.

This behavioral shift removes a major source of structural supply pressure from the market. Concurrently, spot Bitcoin ETFs witnessed a substantial influx of $471.3 million on January 2nd, recording the highest daily inflow since mid-November. Following outflows exceeding one billion dollars in December, this resurgence points to renewed institutional interest.

Market Sentiment and Technical Posture Improve

The overall market momentum has visibly turned. For the first time since October, the Crypto Fear and Greed Index moved into neutral territory on Sunday, suggesting that panic selling is subsiding. Researchers at 10X Research note that Bitcoin has initiated a bullish trend and is now trading above its 21-day moving average.

Activity in the options market provides further insight. Traders are now actively purchasing call options, a reversal from their previous tendency to sell them. This positioning indicates growing expectations for a potential price move toward the psychologically significant $100,000 level, with $98,197 seen as a critical resistance point to overcome.

A Note of Caution Amid the Rally

Despite these encouraging signals, market experts advise a degree of prudence. CoinDesk highlights that the current rally may be "masking fragile liquidity," given that spot trading volumes have sunk to annual lows. The past 24 hours saw over $427 million in positions liquidated, with short positions accounting for the lion's share at $347 million.

From a broader perspective, Goldman Sachs identifies regulatory reforms as the primary catalyst for future institutional cryptocurrency adoption. The bank's survey data indicates that 71% of institutional asset managers intend to increase their crypto exposure within the next twelve months. Historically, January has provided a tailwind for Bitcoin; since 2020, the digital asset has closed the month in positive territory in all but one instance.