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Crypto markets are starting the year in recalibration mode rather than retreating, with bitcoin consolidating above $90,000 and ether regaining relative strength as institutional positioning is restored.
As Hong Kong began its trading day on Wednesday, BTC fell modestly on short-term time frames but remained range-bound after breaking through the psychologically important $90,000 level.
“With stocks, gold and other precious metals at all-time highs, we see the situation as a battle between the price correcting upward to be in line with all other assets and the price moving lower in the coming months to respect the 4-year cycle,” George Mandres, crypto analyst at trading firm XBTO, told CoinDesk in a note, adding that the latter “can very quickly become a self-fulfilling prophecy.”
So far, neither force has dominated the price action. Instead of a sharp correction, bitcoin has moved sideways, suggesting digestion rather than distribution. Mandres pointed to the calendar effect as a key difference from the end of 2025.
“What is different now compared to a few weeks ago, besides the [btc] “The price, which has surpassed $90,000, is the fact that a new year has begun and therefore PNLs reset to 0, and investors need to allocate capital to attractive risk/reward opportunities,” he continued.
Ethereum tells a slightly different story. While ETH has outperformed Bitcoin on weekly and monthly periods, futures data suggests positioning has cooled.
Bradley Park, founder of DNTV Research, said CME ethereum futures open interest offers useful context beyond spot charts.
“The rise in open interest has increasingly reflected institutional participation through DAT-style ETF arbitrage trading, while the decline in open interest suggests easing,” Park said in a note to CoinDesk.
That relaxation now appears to be well underway.
“The recent pullback looks less like a structural break and more like a loss of momentum, with positioning restoring to roughly July 2025 levels,” Park added.
It is important to highlight that this restart has not been accompanied by a strong punctual liquidation.
A recent report from Glassnode reinforces the same theme across assets. Options markets have aggressively de-risked, with open interest contracting and volatility expectations rising, while US ETF spot flows have returned to net inflows, indicating renewed institutional demand but also greater sensitivity to near-term profit-taking.
Taken together, the signals point to consolidation and rotation rather than a broad risk-off move. Bitcoin is absorbing competing macroeconomic narratives without bucking the trend, while Ethereum appears less crowded and better positioned if institutional flows re-engage.
Market movement
BTC: Bitcoin is trading sideways above $90,000, with the price action reflecting consolidation after a recent advance rather than renewed selling pressure as macro support and cycle-driven caution continue to offset each other.
ETH: Ether is trading around $3,247, declining slightly on short timeframes but holding strong on weekly and monthly views, underscoring resilience despite a recent cooldown in futures positioning.
Gold: After a nearly 65% rally in 2025, banks predict gold will hit new records in 2026 due to falling rates, central bank buying and geopolitical risk.
Nikkei 225:JJapan’s Nikkei 225 fell 0.45% on Wednesday as Asia-Pacific markets traded mixed, and Australia’s ASX 200 rose 0.38% after inflation data came in below forecasts.
Elsewhere in Crypto
- Disputes over DeFi and ethics remain in Senate cryptocurrency bill ahead of January 15 vote (CoinDesk)
- Rapper Drake Faces RICO Lawsuit for Promoting and Using Crypto Casino (Decrypt) Stake
