Bitcoin slips back below $90,000

DAILY MARKET OVERVIEW

Bitcoin’s $95K Rally Fails to Hold?

👋 Hey, Crypto Enthusiasts! Bitcoin has slipped back into dip territory yet again. Let’s take a closer look at what’s happening.

Bitcoin fell back below $90,000 after an early-January rally toward $95,000, as optimism around ETF inflows faded and broader market caution returned.

What drove the pullback ❓️ 

• Bitcoin surged at the start of 2026 after roughly $1.2 billion flowed into U.S. spot Bitcoin ETFs over the first two trading days.

• Momentum stalled when ETF flows turned negative for two consecutive sessions now.

• The Coinbase premium indicator briefly turned green but has since returned to deep negative territory, signaling a lack of demand.

The price action will remain extremely choppy going forward as traders still deal with lingering uncertainty after a weak 2025 where BTC ended down about 6.3% on the year, its worst relative performance in years and one of the rare times it underperformed while the S&P 500 rose meaningfully.

💲 ETF flows, rebalancing, and supply resistance

• Analysts at K33 argue early-2026 ETF inflows were largely portfolio rebalancing, not renewed bullish conviction.

• Glassnode data shows profit-taking pressure eased into year-end, enabling a bounce from the high-$80,000 range.

As previously noted, we do not view the move to $95k as a convincing enough push to signal a return to a bullish trend. Instead, we anticipate continued range-bound price action, with the potential for a short-term rally toward $100k followed by an ultimate breakdown.

💡 Our Current Strategy

• Neutral Positioning: We are currently neither long nor short.

• Market Discipline: We are ignoring temporary price spikes and refusing to chase the market.

• Capital Preservation: Our focus is on preserving capital to deploy during more significant drawdowns.

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SOCIAL SENTIMENT

Privacy Coins

Despite the broader market remaining highly uncertain and choppy, one trend has continued to stand out.

🕵️ Privacy coins, particularly ZEC and XMR, have shown notable relative strength.

ZEC delivered a strong run in 2025, but cracks have begun to form beneath the surface. Ongoing internal disagreements have led to developer departures, creating uncertainty around the project’s long-term direction.

In contrast, XMR continues to demonstrate resilience. Widely regarded as the most robust and reputable privacy coin in the market, it has barely dipped during recent volatility and continues to grind higher.

XMR is now extremely close to a new all-time high. With ZEC facing internal instability and the privacy narrative strengthening due to tighter regulation and increased surveillance across the crypto space, conditions appear increasingly favorable. Even against a weak broader market backdrop, XMR has a clear path to setting a new all-time high this year.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

XRP ETFs Record First Outflows
Spot XRP ETFs saw their first-ever withdrawals as investors took profits after a sharp price rally, though analysts say the move is relatively small.

Binance Launches Gold and Silver Futures
Binance now offers USDT-settled futures linked to gold and silver, giving traders 24/7 access to traditional assets through crypto-style contracts.

Zcash Developers Resign En Masse
The entire Zcash development team has quit after a governance dispute, creating uncertainty around the project’s future despite strong recent performance.

Trump-Backed Stablecoin Seeks US Bank License
World Liberty Financial applied for a US bank charter to fully regulate its USD1 stablecoin and expand institutional stablecoin services.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Benjamin Cowen – Bitcoin: An Unfortunate Pattern (08.01.2026 Summary)

Benjamin Cowen is saying that Bitcoin looks like it’s entering a phase that usually comes before a deeper downturn, and that this phase is more about caution than chasing gains.

The story

• Markets often repeat the same pattern across different cycles.

• When that pattern appears, prices usually drop, bounce enough to give people hope, and then fall further.

• Cowen has seen this play out many times in Bitcoin, stocks, and commodities.

• Right now, that pattern is showing up in stablecoins, which means people are quietly moving to safety.

• Stablecoin dominance already broke higher and is now pausing, which often comes before another move up.

• If more money keeps moving into stablecoins, Bitcoin and altcoins usually struggle.

• Short-term rallies can still happen, but they often pull people in right before prices drop again.

• This is why the market can feel confusing and emotionally draining during this phase.

What this means to do

• Do not chase rallies just because prices bounce.

• Focus on protecting capital rather than trying to make quick gains.

• Keep cash available so you can act later, not now.

• Be patient and accept that the best opportunities usually come after the market feels hopeless.

Takeaway
Cowen’s message is simple: this is likely a waiting period. The goal is to survive this phase with capital intact, so when the real opportunities appear later, you are ready to take them.

Paul Barron Network – Fed Stimulus Coming? (08.01.2026 Summary)

Paul Barron believes the market may be close to a turning point, where liquidity starts flowing back in and risk assets like crypto benefit.

The story

• When the Fed expands its balance sheet, markets usually rise.

• Barron sees early signs that this process may already be starting.

• Job data is cooling without breaking, giving the Fed room to stay flexible.

• Housing stress and political pressure increase the chances of future stimulus.

• Even if the Fed does nothing right away, markets often move ahead of official announcements.

• Institutional support for crypto is growing through ETFs, banks, and indexes.

• Rising stablecoin supply suggests money is preparing to move into crypto.

• If liquidity returns, Ethereum and Solana could benefit more than most.

What this means to do

• Stay positioned rather than waiting for perfect clarity.

• Expect pullbacks, but view them as opportunities.

• Focus on assets with strong adoption and institutional interest.

Takeaway
Barron’s message is that liquidity drives markets. If stimulus returns, crypto could move quickly, and the best time to prepare is before it becomes obvious to everyone.

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