Institutional Capital Fuels Bitcoin’s Renewed Ascent

Bitcoin CRYPTO000BTC

Bitcoin has shaken off its year-end weakness, entering 2026 with significant momentum. This resurgence is attributed to a confluence of factors, with a notable return of institutional "big players" to the market taking center stage. A surprising ETF filing from a major US bank has further ignited speculation: are the foundations being laid for a push toward the $100,000 threshold?

The landscape has shifted markedly since December, when tax-related selling pressured the asset. Market experts point to the conclusion of "tax-loss harvesting"—where investors sell assets at a loss to offset tax liabilities—as a key driver behind the current stabilization. Trading near $93,700, Bitcoin has gained over 5% since the start of the year.

Concurrently, institutional capital is making a forceful comeback. US spot Bitcoin ETFs recorded net inflows exceeding $1 billion in the first two trading days of 2026. BlackRock's iShares Bitcoin Trust alone attracted nearly $300 million, marking its strongest influx in three months. This represents a decisive reversal from the outflows seen at the close of 2025.

Morgan Stanley's Strategic Entry

A pivotal signal for long-term adoption emerged from Morgan Stanley. On January 6, the Wall Street giant submitted applications to the US Securities and Exchange Commission (SEC) for its own Bitcoin and Solana exchange-traded funds. Observers consider this move a milestone, as it represents the first time a leading Wall Street bank has sought to position itself directly as an issuer in the crypto ETF space.

Geopolitical tensions are also influencing market dynamics. Following recent US military action in Venezuela, traders note increased demand for perceived safe-haven assets. In this climate of traditional market uncertainty, Bitcoin is benefiting alongside gold.

Liquidity Concerns Amid the Rally

Despite the bullish indicators, analysts urge caution. Spot market liquidity is at its thinnest since late 2023. Sparse order books mean that even moderate buy or sell orders can trigger disproportionate price swings. While this environment can amplify rallies, it simultaneously elevates the risk of sudden and sharp corrections.

Trader attention is now turning to the derivatives market. A notable concentration of call options for late January is focused on the $100,000 strike price. Prospects for a continued upward trend appear favorable, provided ETF inflows remain steady and support holds in the $89,000 to $90,000 range.