• Bitcoin rose about 10% in early January after a serious correction in 2025.
• The Crypto Worry and Greed Index of 27 alerts worry and is traditionally related to market bottoms.
• The $100,000 degree stays an necessary threshold that may change market momentum.

Bitcoin has been gaining momentum for the reason that begin of the yr, gaining about 10% within the first week and buying and selling close to ranges that some analysts see as a gateway to all-time highs.

Cryptocurrency analyst Michael van de Poppe stated Bitcoin’s latest power comes regardless of widespread speak that 2026 could possibly be a bearish yr for digital belongings.

A number of elements are at the moment lining up that might push the value again into six digits.

Excessive worry typically marks a market backside.

Probably the most highly effective alerts comes from market sentiment. The Crypto Worry and Greed Index not too long ago dropped to 27, indicating worry.

Traditionally, such fears have manifested round necessary worth lows relatively than market highs. In previous cycles, destructive expectations have confirmed to be overkill, and shopping for throughout this era has typically been adopted by sturdy rebounds.

Resetting scores resulting from latest fixes

Bitcoin’s fall in late 2025 was extreme by historic requirements, even in comparison with previous market crashes. The analyst stated valuation metrics have fallen to ranges hardly ever seen earlier than, suggesting a lot of the surplus optimism has already been faraway from the market.

This reset made Bitcoin look extra engaging to long-term traders, particularly as the value stabilized and commenced to get better.

ETF inflows will return after year-end promoting

One other driver is the restoration in institutional demand. Bitcoin exchange-traded funds (ETFs) noticed massive outflows in direction of the tip of final yr, primarily associated to tax planning and portfolio rebalancing.

Because the begin of January, greater than $1 billion has flowed into Bitcoin ETFs, serving to to push costs towards the mid-$90,000 vary.

Bitcoin appears low-cost in comparison with gold

Bitcoin’s efficiency in comparison with gold was additionally a scorching matter. Whereas gold soared within the second half of final yr, Bitcoin’s sluggish begin has pushed gold’s valuation to its lowest degree since late 2023.

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For asset managers, any such hole can result in portfolio rotation, lowering beforehand managed belongings and including publicity to underperforming belongings. This course of might assist additional capital inflows into Bitcoin.

$100,000 appears to be the decisive degree

Van de Poppe stated probably the most noteworthy degree is round $100,000. A sustained transfer above this might ship Bitcoin again into the buying and selling vary it held for a lot of final yr.

Associated: Bitcoin’s newest strikes spotlight modifications in cycle dynamics