Bitcoin Experiences $83 Million in Crypto Liquidations as Price Drops to $92,500

Bitcoin edged closer to $94,000 on Jan. 6, 2026, following a month of consolidation after a sharp sell-off in late 2025. The price moved within a narrow range between $85,000 and $94,000, reflecting a market in transition. Institutional flows and macroeconomic signals have played a central role in shaping Bitcoin's recent behavior.

Ethereum also showed strength, trading above $3,200 and breaking key moving averages. Traders noted that ether's relative performance could provide a structural boost to altcoins. Ethereum spot ETFs recorded $168 million in net inflows, with BlackRock's ETHA ETF leading the category.

Bitcoin spot ETFs recorded significant inflows as well, with BlackRock's IBIT ETF seeing a net inflow of $372 million in a single day. Total net inflows into Bitcoin ETFs reached $697 million, highlighting renewed institutional interest in the space.

Why Did This Happen?

Bitcoin's consolidation came after a sharp correction in late November 2025, when the price fell over 30% from a peak near $126,000. Analysts attributed the sell-off to leveraged liquidations, thin liquidity, and a broader risk-off move following the U.S. Federal Reserve's rate cut and geopolitical developments.

Ethereum's strength contrasted with Bitcoin's uncertainty. Ether has been breaking through long-standing downtrends, potentially signaling a broader market shift. Analysts see this as a sign of improving sentiment across the crypto complex.

The market's response to Bitcoin's consolidation was mixed. On one hand, ETF inflows and the easing of macroeconomic uncertainty provided support. On the other hand, lingering macroeconomic uncertainty and mixed institutional flows have prevented a decisive breakout.

Altcoins also showed signs of life, with many attempting to reclaim long-held downtrends. Coins such as XRP, BNB, and Solana gained over 12% in the past 24 hours, suggesting that the broader market is becoming more active again.

Bitcoin's failure to break through the $94,000 resistance zone has led to cautious optimism among traders. A successful break above this level could signal the start of a new bullish trend, while a pullback would likely test key support levels in the $85,000 to $90,000 range according to technical analysis.

What Are Analysts Watching Next?

Analysts are closely watching Bitcoin's interaction with key resistance and support levels. A daily close above $94,766.54 would be a bullish sign, potentially triggering a move toward the $100,000 psychological level. Conversely, a breakdown below the $80,619.71 level would raise concerns about a deeper correction.

Ethereum's performance is also under scrutiny. Its ability to hold above key moving averages could indicate whether the broader altcoin market will follow suit. Analysts suggest that ether's strength is a leading indicator of broader market health.

Morgan Stanley submitted filings for two new spot ETFs on Jan. 6, 2026: the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust. These products are structured to hold the underlying cryptocurrencies directly and are expected to trade on U.S. exchanges.

The firm's entry into the spot ETF space marks a significant milestone in institutional adoption. Morgan Stanley is leveraging its wealth management platform to integrate these products into client portfolios, allowing it to retain management fees in-house.

The firm's move follows the rapid expansion of spot ETFs in the U.S., with over $150 billion in assets already deployed across more than 130 funds. BlackRock's IBIT ETF has been the most successful, with over $62 billion in net inflows.

Outlook for 2026 and Institutional Participation

The institutional interest in crypto continues to grow, with firms like JPMorgan Chase and Neos Investments also expanding their offerings. BlackRock and Fidelity have already established dominant positions in the space, and new entrants like Morgan Stanley are expected to further legitimize the asset class.

Bitcoin's price action and ETF inflows suggest that institutional participation is becoming a more permanent feature of the market. Analysts expect that this trend will continue in 2026, provided macroeconomic conditions remain stable and regulatory clarity improves.