Written by: Blockchain Knight
At the beginning of 2026, Bitcoin broke through $94,000, reaching a new high in over a month, signaling a potential end to the market stagnation that characterized late 2025.
Compared to the lackluster performance during the same period last year, this rebound represents a decisive reversal in market sentiment. The core driving forces stem from a favorable macro environment, recovering institutional demand, and healthy market mechanisms.
On the macro level, shifts in the U.S. economic landscape are providing support for Bitcoin.
Firstly, the Treasury yield curve has moved away from the inversion seen between 2022 and 2024. The coexistence of short-term easing expectations and long-term high yields is driving a repricing of duration risk and credit risk.
Secondly, the U.S. dollar is experiencing structural weakness. While its foundation remains solid, its depreciation is controlled, with policy guidance aimed at enhancing trade competitiveness. This combination benefits assets with defensive characteristics.
Simultaneously, the ETF sell-off wave from late 2025 has slowed down. In the first two trading days of 2026, Bitcoin ETFs saw net inflows exceeding $1 billion, indicating a return of institutional capital to the market.
Furthermore, following significant deleveraging in the derivatives market, Bitcoin futures open interest has dropped from its October peak of $98 billion to $58 billion. The annualized funding rate of 5.8% has returned to its long-term median, signaling a shift back to a spot-driven market model.
Whales holding 10 to 10,000 Bitcoins have accumulated an additional 56,227 coins since December 17th, while retail wallets have been taking profits. This indicates a transfer of assets from weaker investors to long-term holders.
Bullish market expectations are also heating up. Demand for $100,000 call options expiring in January on the Deribit platform has surged, while the premium for put options has faded.
It is worth noting that recently, wealth management platforms under Bank of America, including Merrill Lynch, Bank of America Private Bank, and Merrill Securities, will allow advisors to recommend cryptocurrency exchange-traded products.
Internally, the institution believes that for clients who can withstand price volatility, a moderate allocation of 1% to 4% of funds is reasonable, which may further fuel capital inflows.
