Bitcoin Holds Above $90K as New-Year Flows Support Crypto Markets
Crypto markets have started the year in adjustment mode rather than retreat, with bitcoin consolidating above $90,000 and ether showing renewed relative strength as institutional positioning resets.
In early Asian trading on Wednesday, bitcoin edged lower on short time frames but remained range-bound after clearing the psychologically important $90,000 level.
“With equities, gold and other precious metals at record highs, the market is balancing between prices moving higher to stay aligned with other assets and the risk of a pullback to respect the four-year cycle,” said George Mandres, a crypto analyst at XBTO. He cautioned that downside expectations “can quickly become self-fulfilling.”
So far, neither narrative has taken control. Instead of a sharp correction, bitcoin has traded sideways, pointing to consolidation rather than distribution. Mandres said the turn of the calendar is a key distinction from late 2025.
“Beyond the move above $90,000, what’s changed is the start of a new year,” he said. “PNLs reset, and investors are reallocating capital toward attractive risk-reward opportunities.”
Ether presents a slightly different picture. While ETH has outperformed bitcoin over weekly and monthly periods, derivatives data suggests positioning has cooled.
Bradley Park, founder of DNTV Research, said CME ether futures open interest provides useful context beyond spot price action. Rising open interest has reflected institutional participation through ETF arbitrage and DAT-style trades, while falling open interest points to position unwinds.
“That unwind now appears well advanced,” Park said, adding that the recent pullback looks more like a loss of momentum than a structural break, with positioning back near mid-2025 levels. Importantly, the reset has not been accompanied by heavy spot selling.
A recent Glassnode report reinforces this theme. Options markets have de-risked sharply, with open interest contracting and volatility expectations rising, while U.S. spot bitcoin ETF flows have flipped back to net inflows. This combination signals renewed institutional demand alongside heightened sensitivity to near-term profit-taking.
Taken together, the signals point to consolidation and rotation rather than a broad risk-off move. Bitcoin continues to absorb competing macro narratives without breaking trend, while ethereum appears less crowded and better positioned should institutional flows re-engage.
Market Movement
- BTC: Trading sideways above $90,000, reflecting consolidation after recent gains as macro support and cycle caution offset each other.
- ETH: Around $3,247, edging lower intraday but remaining strongly higher on weekly and monthly measures despite cooling futures positioning.
- Gold: After a nearly 65% rally in 2025, banks see gold pushing to fresh records in 2026 amid lower rates, central bank buying and geopolitical risk.
- Nikkei 225: Japan’s Nikkei fell 0.45% on Wednesday as Asia-Pacific markets were mixed, while Australia’s ASX 200 rose 0.38% after inflation came in below forecasts.
Elsewhere in Crypto
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- Drake faces RICO lawsuit over crypto casino promotion (Decrypt)
