Asia Morning Briefing: Bitcoin remains stable above $90K as new investments flow back into the crypto market

Bitcoin prices are supported by new-year fund allocations, while leverage decreases and volatility expectations increase.

Key points to know:

• Bitcoin stays steady above $90,000, indicating consolidation instead of increased selling pressure.
• Ethereum demonstrates strength with solid weekly and monthly gains, even as futures positions cool down.
• Gold is projected to hit new highs in 2026, driven by declining interest rates, central bank purchases, and geopolitical uncertainties.

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Good morning, Asia! Here’s what’s moving the markets today:

Crypto markets kick off the year in a phase of adjustment rather than decline, with Bitcoin holding steady above $90,000 and Ether showing renewed strength as institutions reset their positions.

As Hong Kong opened its Wednesday trading session, Bitcoin dipped slightly in the short term but stayed within a range after surpassing the key $90,000 mark.

“With stocks, gold, and other precious metals at record highs, we view the situation as a tug-of-war between prices correcting upward to align with these assets and potentially declining over the coming months to follow the 4-year cycle,” said George Mandres, crypto analyst at trading firm XBTO, in a note to CoinDesk. He added that the latter scenario “can quickly become a self-fulfilling prophecy.”

So far, neither upward nor downward pressure has taken control of Bitcoin’s price. Rather than a steep correction, Bitcoin has traded sideways, indicating a phase of digestion rather than distribution. Mandres highlighted the calendar effect as a key factor distinguishing the current situation from late 2025.

“What’s changed now compared to a few weeks ago, aside from Bitcoin surpassing $90K, is that a new year has begun, resetting P&Ls to zero, and investors are looking to allocate capital to attractive risk/reward opportunities,” he explained.

Ethereum presents a slightly different picture. Although ETH has outperformed Bitcoin over weekly and monthly periods, futures data show that positioning has cooled.

Bradley Park, founder of DNTV Research, noted that CME Ethereum futures open interest provides valuable insight beyond spot price movements.

“Increasing open interest has largely reflected institutional activity through DAT-style ETF arbitrage trades, while declining open interest signals unwinding positions,” Park said in a note to CoinDesk.

That unwinding now seems well underway.

“The recent pullback looks less like a structural shift and more like a loss of momentum, with positioning resetting to roughly July 2025 levels,” Park added.

Crucially, this reset has not triggered a sharp spot market sell-off.

A recent Glassnode report echoes this theme across assets. Options markets have de-risked significantly, with contracting open interest and rising volatility expectations. Meanwhile, U.S. spot ETF flows have returned to net inflows, indicating renewed institutional demand but also greater sensitivity to near-term profit-taking.

Overall, these signals suggest consolidation and rotation rather than a widespread risk-off selloff. Bitcoin is balancing conflicting macro factors without losing its trend, while Ethereum appears less crowded and better positioned to benefit if institutional flows pick up again.

Market Movement:

BTC: Bitcoin is consolidating above $90,000, trading sideways after a recent rise. The price action reflects balance between macro support and caution from the market cycle, rather than fresh selling pressure.

ETH: Ether is hovering around $3,247, showing slight declines on short-term charts but maintaining strong gains over weekly and monthly periods, demonstrating resilience despite a recent pullback in futures positioning.

Gold: Following a nearly 65% rally in 2025, gold is expected to reach new highs in 2026, driven by falling interest rates, ongoing central bank purchases, and geopolitical uncertainties.

Nikkei 225: Japan’s Nikkei 225 dropped 0.45% on Wednesday as Asia-Pacific markets showed mixed results. Meanwhile, Australia’s ASX 200 gained 0.38% after inflation data came in below expectations.