Bitcoin began the week with renewed strength, briefly pushing to the $94,000 mark and setting a new high for 2026. The move marks Bitcoin’s strongest rally in nearly four weeks and signals a notable shift in market sentiment after weeks of range-bound trading and muted volatility.
The rally unfolded against a backdrop of rising appetite for risk across global markets. U.S. equities closed higher, led by technology stocks, while traditional safe havens such as gold and silver also posted gains.
Despite heightened geopolitical tension following the detention of Venezuelan President Nicolás Maduro by U.S. special forces and his subsequent transfer to the United States, investors appeared unfazed, continuing to rotate into risk assets rather than retreating from them.
Bitcoin climbed more than 3% on the day, holding just below $94,000 at the time of writing. Ethereum followed the broader market higher but recorded more modest gains, underperforming Bitcoin during the session.
Key Takeaways
- Bitcoin briefly touched $94,000, marking its highest level of 2026 and breaking a nearly four-week consolidation range.
- Renewed spot demand, including strong inflows into U.S. spot Bitcoin ETFs, has played a major role in supporting the rally.
- The price move occurred despite weak U.S. manufacturing data, highlighting sustained investor appetite for risk assets.
- Market focus has shifted to whether Bitcoin can hold above $94,000, with $88,000 identified as a key downside support level.
Technical Breakout Restores Confidence
One of the most closely watched developments during the rally was Bitcoin’s move above its 50-day moving average for the first time since the sharp correction that began in early October. This technical level had capped upside attempts for weeks, and its breach is being interpreted by many traders as a sign that the market may have found firmer ground.
Year-to-date, Bitcoin is now up roughly 6%, a recovery that contrasts with its performance late last year. The asset fell 24% during the fourth quarter, diverging sharply from gold and silver and underperforming broader financial markets. It also ended 2025 down about 6.5%, despite optimism surrounding a more favorable regulatory tone toward crypto under the Donald Trump administration in the United States.
Market participants say the current upswing is being driven less by speculative frenzy and more by structural factors. Buying activity from crypto-focused companies has increased, while selling pressure from miners and large institutional holders has remained relatively subdued.
“Recent price strength has been supported by steady spot demand, combined with limited selling from miners and long-term holders,” said Sean McNulty, Head of Derivatives for APAC at FalconX.
This combination has helped Bitcoin break out of the tight range it had been stuck in for much of the holiday period, during which it lagged the rally in equities.
ETFs Signal Shift in Sentiment
Another key catalyst underpinning the move is renewed interest in U.S.-listed spot Bitcoin exchange-traded funds. On January 2 alone, the 12 spot Bitcoin ETFs traded in the U.S. recorded a combined net inflow of approximately $471 million, a figure that stands out after weeks of more subdued flows.
ETF demand is often viewed as a proxy for institutional and long-term investor sentiment. The return of strong inflows suggests that investors who had been on the sidelines are beginning to re-engage, particularly as Bitcoin shows signs of technical stabilization.
At the same time, on-chain and market indicators point to improving demand from U.S.-based investors. The Coinbase Bitcoin Premium, which measures price differences between Coinbase and offshore exchanges, turned positive, indicating stronger buying interest from American traders.
Rally Defies Weak U.S. Manufacturing Data
Bitcoin’s rise came despite fresh signs of economic weakness in the United States. Data from the Institute for Supply Management (ISM) showed that manufacturing activity remained in contraction territory for a tenth consecutive month.
“The ISM Manufacturing PMI printed at 47.9, below the 48.3 forecast, extending the contraction in U.S. manufacturing activity.”
Ordinarily, such data might dampen risk appetite. Instead, markets appeared to interpret the figures as reinforcing expectations that monetary conditions could eventually ease if economic weakness persists. This backdrop has supported both equities and alternative assets, including cryptocurrencies.
Bitcoin’s ability to rally alongside stocks, while also keeping pace with gains in gold and silver, once again highlights its shifting role in global markets. At times, it trades like a high-beta risk asset; at others, it attracts flows typically reserved for hedges against macro uncertainty.
Liquidations and Key Levels Ahead
Volatility returned to the crypto market as prices surged, triggering a wave of liquidations. Over the past 24 hours, roughly $297 million worth of positions were wiped out, with short positions accounting for the majority. This suggests that bearish bets were caught off guard by the speed and strength of the move higher, adding fuel to the rally as positions were forcibly closed.
Looking ahead, analysts are closely monitoring whether Bitcoin can sustain a break above the $94,000 level. A clean move higher could open the door to further upside and reinforce the view that the recent consolidation phase has ended.
On the downside, the $88,000 area is emerging as a critical support zone. A drop below that level could weaken the bullish narrative and pull Bitcoin back into its previous trading range.
For now, momentum is firmly on the side of the bulls. Bitcoin’s push to a new 2026 high, driven by improving demand, strong ETF inflows, and a broader rally in risk assets, suggests that confidence is returning to the market—at least in the short term. Whether that confidence can carry prices decisively beyond $94,000 remains the key question in the days ahead.
