Bitcoin Smashes $94,000 as Crypto Markets Rally Amid Growing Geopolitical Strain
January 5, 2026 – Global crypto markets
Bitcoin (BTC) pushed past the $94,000 mark on Monday, climbing roughly 3.5 % in the preceding 24 hours and up 8 % for the week. Ethereum (ETH) followed suit, gaining about 3.2 % to trade near $3,240, an 11 % rise on the weekly horizon. The broader digital‑asset market also posted solid gains, with the total crypto capitalization hovering around $3.31 trillion – a 3 % increase from the prior day – and daily trading volume reaching approx. $139 billion.
Market drivers
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ETF inflows reignite risk appetite
Spot Bitcoin ETFs attracted $471 million of new capital on Friday, while spot Ethereum products added $174 million. The inflows reverse a December outflow trend that saw more than $1 billion exit Bitcoin‑linked funds and $600 million leave Ethereum funds. Smaller‑cap ETFs also recorded net inflows, with XRP ETFs drawing $13.6 million and Solana ETFs $9.7 million. -
Short‑position liquidations
Data from Coinglass show that roughly $428 million of leveraged positions were liquidated in the past day, with short positions accounting for about $347 million. Bitcoin bore the brunt of the activity, losing $228 million in short contracts, followed by Ethereum at $73 million. The heavy short‑side unwind helped fuel the upward price pressure on both leading coins. - Risk‑on sentiment despite geopolitical headlines
The weekend’s escalation of political tension – highlighted by the New York court hearing of ousted Venezuelan President Nicolás Maduro and ensuing U.S. diplomatic warnings – did not dampen investor enthusiasm for higher‑yielding assets. Traditional safe‑havens such as gold and silver rallied (gold +2.5 % to $4,443/oz; silver +4.6 % to $76/oz), but the crypto market’s risk‑on tilt suggests a decoupling from immediate geopolitical risk for many traders.
Performance snapshot of other leading assets
| Asset | 24‑hour change | Price (approx.) |
|---|---|---|
| XRP | +11 % | $2.33 |
| BNB | +2 % | $914 |
| SOL | +4 % | $139 |
| RENDER | +14 % | $2.18 |
| WLD | +9.6 % | $0.65 |
| NIGHT | –4 % | $0.08 |
| ZEC | –2.5 % | $493 |
| TRX | –0.6 % | $0.29 |
Bitcoin’s dominance stands at 57.2 %, while Ethereum’s share is 11.8 % of the overall market cap.
Analysis
The confluence of sizable inflows into spot Bitcoin and Ethereum ETFs and the unwinding of short positions created a classic “short‑squeeze” environment, propelling the top two cryptocurrencies to fresh all‑time highs. The $471 million ETF inflow on Friday stands out as the most significant weekly injection for Bitcoin funds since the early‑2022 rally, indicating renewed institutional interest in regulated crypto exposure.
Meanwhile, the broader market’s resilience in the face of heightened geopolitical uncertainty hints at an evolving risk calculus among crypto investors. While gold and silver still served as traditional hedges, the parallel rise in digital assets suggests that many market participants view crypto as a complementary store of value rather than a pure speculative play.
Liquidity remains robust, with daily trading volume surpassing $130 billion, bolstering price stability despite the volatility typical of the space. However, the continued concentration of market cap in Bitcoin (over half of total value) means that any sharp reversal in BTC sentiment could reverberate across the ecosystem.
Key takeaways
- Bitcoin surpasses $94 K, marking a 3.5 % daily gain and a solid 8 % weekly ascent.
- ETF inflows are a primary catalyst, delivering $645 million of net new capital into spot Bitcoin and Ethereum products over the past two days.
- Short‑position liquidations total $428 million, with Bitcoin accounting for more than half of the short‑side unwind.
- Altcoins rally alongside BTC/ETH, led by XRP (+11 %) and RENDER (+14 %).
- Geopolitical tensions have limited impact on crypto risk‑on flow, even as safe‑haven metals post modest gains.
- Market capitalization reaches $3.31 trillion, up 3 % in 24 hours, and trading volume stays above $130 billion, indicating healthy liquidity.
The current momentum suggests that, at least in the short term, the crypto market is poised to continue its upward trajectory, provided that regulatory developments remain favorable and no sudden macro‑economic shocks emerge. Investors should monitor ETF flow trends and liquidation data for early signals of a potential shift in sentiment.
Source: https://thedefiant.io/news/markets/bitcoin-breaks-usd94k-market-update-jan-5-2026
