Bitcoin Rebounds as Strong U.S. Jobs Data and Institutional Interest Drive Market Optimism

Bitcoin rebounded to above $90,000 on January 12, 2026, driven by a strong U.S. jobs report that signaled resilience in the labor market according to market analysis. The price surge follows a prior pattern that historically led to a 50% increase from $74,000 to $112,000 within 43 days as reported. Traders are viewing the move as a sign of renewed momentum in the broader crypto market.

Investors are increasingly repositioning their portfolios with digital assets as they anticipate 2026 opportunities. Petr Kozyakov, co-founder and CEO of Mercuryo, stated that digital gold is gaining traction in institutional and individual portfolios according to his comments. Despite a decline in sentiment during late 2024, the infrastructure and liquidity in stablecoin sectors continue to support a positive fundamental outlook.

Standard Chartered is reportedly developing a crypto prime brokerage platform, signaling its growing involvement in the digital asset space as announced. Despite these plans, the bank has trimmed its price forecast for Ethereum, lowering its 2026 target to $7,500 from $12,000 according to financial reports. The move reflects broader weakness across the crypto market, with Ethereum down over 17% in the past three months as data shows.

Why Did This Happen?

The recent surge in Bitcoin is attributed to positive U.S. economic data and a shift in investor sentiment. A strong jobs report indicated that the U.S. labor market remained robust, reducing fears of a recession according to economic data. This has led to increased capital flowing into risk assets, including Bitcoin.

Institutional interest is also playing a role in the recent price action. Mercuryo's Kozyakov noted that demand for crypto assets is being driven by investors seeking long-term exposure as he stated. This aligns with the broader trend of financial institutions expanding their digital offerings, as seen with Standard Chartered and other major banks according to industry reports.

How Did Markets React?

Bitcoin has held above $90,000 despite a criminal investigation into Federal Reserve Chair Jerome Powell, which introduced uncertainty into the market according to market analysis. The investigation, which concerns Powell's testimony on the renovation of the Fed headquarters, has not significantly impacted Bitcoin's price as reported.

Ethereum and other altcoins followed Bitcoin's price action but saw trimming of gains amid profit-taking. XRP, for example, slid below $2.13 after the news broke according to price data. The broader crypto market capitalization rose by 0.6% to $3.2 trillion, though volume was below recent averages as market data shows.

Technical indicators show mixed signals. The RSI for Bitcoin is at 52, slightly below neutral, while the MACD continues to signal a bullish bias according to technical analysis. Ethereum is trading just above $3,100 but remains constrained by the 50-day EMA. The RSI for ETH is at 53, indicating a similar bearish bias as technical data shows.

What Are Analysts Watching Next?

Analysts are closely watching whether Bitcoin can break above the $92,500 level, which was previously a key resistance. A sustained push above this level could lead to a test of the 200-day EMA at $99,662 and potentially trigger a new leg higher according to technical analysis.

Standard Chartered's Geoff Kendrick noted that weaker Bitcoin performance has dampened overall digital asset sentiment according to bank reports. The bank still expects Ethereum to surpass $40,000 by 2030, despite the short-term bearish outlook.

On the technical side, traders are watching for confirmation of a bullish breakout through key moving averages. A close above the 100-day EMA at $96,005 would provide stronger support for a continuation of the upward trend according to technical analysis.

Institutional adoption continues to be a key theme. Morgan Stanley and Bank of America have both launched or approved Bitcoin and Ether ETFs, signaling increased legitimacy for digital assets according to industry reports. This trend could drive further institutional buying pressure in the coming months.

The Fed's next policy moves are also in focus. Analysts argue that further rate cuts are unlikely given the current economic data, which shows stable employment and moderate inflation according to economic analysis. This could reduce macroeconomic risks for the crypto market, potentially supporting further gains.

The broader market is cautious but optimistic. While the current rally may be temporary, the underlying demand for digital assets remains intact as market analysis shows. Institutional participation and technological developments, such as quantum-resistant forks like Bitcoin Quantum, may also influence long-term price action according to company announcements.