What is happening now
Bitcoin (BTC) has been trading steadily near the $98,000 level in mid-January 2026. This price stability comes amid a strong influx of capital into spot Bitcoin exchange-traded funds (ETFs), which have attracted over $1.4 billion in new investments during the past week. These ETFs have drawn renewed institutional and retail interest, helping to support Bitcoin’s price despite some cautious trading behavior and lower overall volume compared to previous months.
Onchain activity for Bitcoin remains robust, with an increase in average transaction counts and stable miner revenue. Ethereum (ETH) is also experiencing steady demand, though its price movements are more muted compared to BTC this week.
Why it matters
The recent growth in spot Bitcoin ETF inflows signals increasing confidence among investors using regulated financial products to gain exposure to Bitcoin. ETFs make it easier for traditional investors, such as pension funds and asset managers, to add Bitcoin to portfolios without dealing with complexities like wallets and private keys. This trend can enhance Bitcoin’s legitimacy and attract long-term capital, which may reduce volatility over time.
Furthermore, Bitcoin’s ability to hold steady near $98,000 indicates a level of support after its recent rally, suggesting that buyers remain interested around this price point. This price stability can encourage more new entrants into the market and boost trading activity across exchanges.
Key risks
Despite the positive momentum, several risks remain. Regulatory uncertainties continue to pose challenges, as governments worldwide are still shaping crypto-related rules that could impact ETFs and broader crypto markets. Any negative announcements or delays in approvals could affect investor confidence.
Market liquidity has also become a concern. While ETF inflows have increased, overall trading volume has declined slightly, indicating that fewer active traders are present to absorb larger price movements. This can increase volatility during sudden events.
Finally, external macroeconomic factors such as interest rate hikes or geopolitical tensions could influence investor behavior and push volatility higher in crypto markets.
What to watch next
Investors and observers should closely monitor how spot Bitcoin ETFs perform over the coming weeks and their impact on liquidity and price stability. Watch for any regulatory updates, especially from major markets like the United States and Europe, which could affect ETF approvals and crypto exchange operations.
Additionally, tracking onchain Bitcoin data—such as active addresses and miner activity—will help gauge real demand strength versus speculative trading. Ethereum’s developments on network upgrades and staking activity could also shift market dynamics going forward.
Quick FAQ
1. What is a Bitcoin ETF?
A Bitcoin ETF is an exchange-traded fund that holds Bitcoin or Bitcoin futures, allowing investors to gain exposure to Bitcoin’s price without owning the coins themselves.
2. Why is Bitcoin near $98,000 important?
Holding near $98,000 suggests a strong support level where buyers are willing to step in, which helps reduce the chance of significant price drops in the short term.
3. Are Bitcoin ETFs safe investments?
Bitcoin ETFs are generally considered safer than holding Bitcoin directly because they trade on regulated stock exchanges and are managed by professional firms, though they still carry market risk.