Bitcoin traded near $92,000 early Monday, showing a lack of clear directional momentum as traders balanced multiple macroeconomic factors. The cryptocurrency was up 1.7% to $92,122, while the total crypto market cap stood at $3.23 trillion, up 1.6%. Ether (ETH) was down 2.2% to $3,158, and XRP saw a slight 0.4% gain to $2.10.
The market's indecision reflects a complex backdrop. Traders are treating the $91,000 level as a pivot point, with conflicting forces at play: shifting rate cut expectations, US dollar movements, and general risk appetite. All eyes are on key US economic data this week, starting with the December Consumer Price Index (CPI) report due Tuesday, January 13. This will be followed by the Federal Reserve's Beige Book on Wednesday, with the market looking ahead to the Fed's policy meeting scheduled for January 27-28.
Adding an unusual layer of political risk, Federal Reserve Chair Jerome Powell revealed the central bank received grand jury subpoenas from the Justice Department related to his Senate testimony on the Fed's headquarters renovation. This raises questions about institutional pressure as Powell's term as Chair ends in May 2026.
In a significant regulatory development, South Korea announced plans to pursue spot Bitcoin ETFs as part of its 2026 economic growth strategy. This marks a major shift from the country's previously strict and less crypto-friendly regulatory stance. As one of Asia's top economies, South Korea's move could unlock new institutional capital flows into Bitcoin, highlighting growing global institutional demand beyond the United States.
Meanwhile, on-chain data reveals notable activity from large Bitcoin holders. Whales have been closing their leveraged long positions on the Bitfinex exchange. While this could be interpreted as a bearish signal, historical patterns from December 2024 and April 2025 suggest such moves have sometimes preceded market rallies, potentially setting the stage for a cleaner leverage slate before an upward move.
Analysts are also monitoring long-term holder behavior. Data from CryptoQuant shows a significant surge in long-term holder spending (BTC exiting long-term holder accounts) in late 2025, peaking at levels seen during previous market tops. Traditionally a bearish signal, the current dynamic is different due to substantial institutional buying pressure absorbing the sell-off from long-term holders.
Despite these bullish on-chain and regulatory signals, Bitcoin's price action remains constrained by macro headwinds and recent outflows from US spot Bitcoin ETFs over the past three weeks. The cryptocurrency hovered near $90,600 over the weekend, demonstrating underlying strength at current levels despite the prevailing market uncertainty.
