Bitcoin Stumbles Below $97,000 as Momentum Fades
The leading cryptocurrency slipped to just above $96,000 on Thursday, ending a brief surge that had pushed it past the $97 k mark earlier in the week. The retreat comes amid a broadly flat market, elevated ETF inflows and analysts describing Bitcoin as being in a “transitional” phase.
Market snapshot
- Bitcoin (BTC) traded around $96,035 at the time of writing, down roughly 0.5 % over the previous 24 hours.
- The aggregate crypto market cap sits near $3.34 trillion, a decline of 0.8 % for the day.
- Most of the top‑ten coins were either unchanged or marginally lower, with TRON (TRX) the only notable gainer (+1.5 %) and Dogecoin (DOGE) the most significant loser (‑3.7 %).
On‑chain and technical view
Glassnode’s latest research characterises the current price action as part of a “transitional phase” for Bitcoin. The firm notes that while structural flow metrics are stabilising and spot‑market dynamics are improving, the push into the $96 k region was largely driven by mechanical positioning—largely short‑term futures and liquidation‑induced buying—rather than a genuine surge in organic demand.
Key observations from the analysis:
- Futures liquidity remains thin, suggesting that large‑scale funding activity could still be limited.
- Spot market participation has not yet shown the sustained accumulation that typically underpins a full‑blown bullish trend.
- The cost‑basis distribution of long‑term holders indicates a spread that could moderate upside momentum until a clearer demand signal emerges.
Derivatives activity and liquidations
Derivatives markets cooled relative to the previous session:
- Total liquidations across all crypto contracts in the past 24 hours were about $351 million, down from the prior day.
- Short‑side liquidations accounted for roughly $142 million, while long‑side events summed to about $209 million.
- Bitcoin itself saw liquidations near $103 million, with Ethereum close behind at $80 million.
ETF inflows keep flowing
Despite the price pull‑back, spot Bitcoin ETFs continued to attract substantial capital, recording net inflows of $843.6 million on Wednesday—higher than the previous day’s figures, according to SoSoValue data. Spot Ethereum ETFs also posted strong demand, pulling in $175 million in net inflows.
Regulatory developments
Two policy storylines intersected the market on Thursday:
-
Federal Reserve comments – Chicago Fed President Austan Goolsbee warned that any attacks on the Fed’s independence could jeopardise the central bank’s ability to keep inflation in check, a reminder of macro‑economic headwinds that can spill over into crypto sentiment.
- U.S. legislative proposals – Coinbase CEO Brian Armstrong publicly criticized the Senate Banking Committee’s draft crypto‑market structure bill, arguing that its current language would be more restrictive than having no legislation at all. He highlighted concerns over a de‑facto ban on tokenised equities and sweeping DeFi restrictions. The Senate Agriculture Committee has postponed its own bill until Jan. 21, while the Banking Committee is expected to begin markup as early as Friday, Jan. 16.
Analysis
The failure of Bitcoin to sustain levels above $97 k underscores the fragility of the recent rally. While ETF inflows suggest that institutional interest remains strong, on‑chain metrics and thin futures liquidity hint that the price move may lack durable backing. The market’s broader flatness, coupled with modest liquidation activity, points to a short‑term consolidation as participants await clearer directional cues—whether from macro‑policy developments, upcoming regulatory decisions, or a decisive shift in spot demand.
Key takeaways
- Bitcoin’s price correction: The top‑level breach of $97 k proved unsustainable; BTC now hovers just above $96 k.
- Transitional phase: On‑chain data signal a shift toward stability but also reveal that current upside may be more mechanical than fundamental.
- Derivatives calm: Liquidations have receded, indicating reduced speculative stress on the market.
- ETF demand persists: Large net inflows into spot BTC and ETH ETFs show continued institutional appetite despite price volatility.
- Regulatory uncertainty: Ongoing congressional deliberations and Fed commentary add macro‑political risk, potentially influencing investor sentiment in the near term.
The coming weeks will likely determine whether Bitcoin can break out of this consolidation with genuine demand or remain trapped in the current transitional zone.
Source: https://thedefiant.io/news/markets/bitcoin-below-usd97k-crypto-market-update-jan-15-2026
