Behind Bitcoin stabilizing at $90,000: a new signal of institutional funds aggressively entering the market

Bitcoin has delivered a impressive performance right at the start of 2026. As of January 5th, BTC is priced at $92,887.28, up 1.80% in 24 hours, with a market capitalization of $1.86 trillion. Behind this seemingly steady increase lies a more significant story: institutional funds are re-entering the market at an unprecedented pace, potentially signaling a profound shift in market structure.

The Funding Surge on the First Trading Day of the Year

On the first trading day after the New Year holiday (January 2nd), the US spot Bitcoin ETF market experienced a strong influx of capital. According to the latest reports, net inflows on that day reached $471 million, the highest since mid-November 2025.

What do these figures imply? A look at the specific participants makes it clear:

• BlackRock’s iShares Bitcoin Trust (IBIT) saw a single-day net inflow of $287 million, accounting for over 60% of total inflows
• Fidelity Bitcoin ETF (FBTC) net inflow was $88.1 million
• This does not include other smaller Bitcoin ETF products

This is not just a one-time capital inflow but a collective institutional action. By the end of 2025, BlackRock IBIT had accumulated $24.7 billion in funds, and the entire US spot Bitcoin ETF ecosystem saw a net inflow of approximately $31.77 billion throughout the year. These numbers indicate that Bitcoin is gradually evolving from a speculative asset into a standard component of institutional portfolios.

On-Chain Data Reflects True Market Demand

Price increases are easy, but whether they can hold steady at key levels depends on genuine market demand. On-chain data provides strong evidence.

According to relevant information, long-term holders (typically addresses holding for over half a year) have shown a clear shift: a net increase of over 10,700 BTC in a single day. What does this mean? It indicates that large investors are not cashing out but are instead accumulating coins. Meanwhile, five of the top 100 publicly listed companies have increased their BTC holdings in the past 7 days, with a total addition of 7,110.9 BTC, with MicroStrategy’s accumulation being the largest.

This is a crucial signal. When institutional-level Bitcoin reserve strategies shift from passive holding to active accumulation, the supply-demand structure begins to improve. About 20,000 BTC left exchanges and moved into long-term holding addresses in the past week, further easing selling pressure.

Market Structure Is Quietly Changing

Several deeper factors behind this rally are worth noting:

New trends in capital rotation

After touching recent highs, funds are shifting from precious metals to cryptocurrencies. Even as stock markets face selling pressure, Bitcoin continues to rise. This reflects a rebalancing of global asset allocation, with institutional investors reassessing the relative attractiveness of traditional safe-haven assets versus digital assets.

Macro environment improvement

Recently, the USD/JPY has weakened, easing concerns about short-term forced liquidations of yen arbitrage trades. Federal Reserve officials have hinted that if inflation cools, they may consider a moderate rate cut later in 2026, providing favorable liquidity conditions for risk assets. Meanwhile, US legislative efforts to advance crypto market structure legislation have increased market expectations for compliance and long-term capital inflows.

Significant strengthening of market resilience

Although US military actions against Venezuela have drawn short-term attention, Bitcoin’s price has shown relative restraint, briefly dropping below $90,000 before quickly rebounding and regaining that level. This indicates that Bitcoin’s price stability in high ranges is strengthening, and market sensitivity to sudden geopolitical events is decreasing.

Data Overview

Bitcoin’s current market position is quite solid:

Key Observations

The core of this rally is the sustained demand for institutional allocation. From continuous ETF capital inflows, to active accumulation by long-term on-chain holders, to strategic reserves by listed companies, Bitcoin is gaining increasing recognition at the institutional level.

It’s important to note that this rising institutional participation is changing Bitcoin’s supply-demand structure. As more BTC is locked in long-term addresses, the available circulating supply decreases, providing a structural support for prices.

Summary

This Bitcoin rally may appear gradual, but behind it lies a profound change in market structure. The aggressive entry of institutional funds, proactive accumulation by long-term holders, and global asset rebalancing are working together to make the $90,000 level more and more stable. Of course, markets always have volatility, but based on current capital flows and market structure, Bitcoin has evolved from a purely speculative asset into a key component of institutional portfolios. The long-term significance of this shift may far exceed short-term price fluctuations.