Bitcoin Whales Accelerate Exchange Activity in Early 2026 Amid Increasingly Fragile Liquidity

Bitcoin and Ethereum have started 2026 with gains, with Bitcoin trading near $93,700 and Ethereum near $3,224. Analysts attribute this to new-year allocations and a shift in risk appetite amid geopolitical tensions. Institutional demand has surged for U.S.-listed spot ETFs, signaling a potential end to a de-risking period and boosting market confidence.

Cumulative trading volume across U.S. spot crypto ETFs now exceeds $2 trillion, with Bitcoin ETFs alone holding over $117 billion in assets. BlackRock's iShares Bitcoin Trust (IBIT) recorded $287.4 million in inflows on January 2, the largest single-day inflow since October 2025.

Bitcoin whales are showing increased activity, with BitMine Immersion Technologies recently acquiring 32,977 ETH, increasing its total holdings to over 4.14 million ETH. Despite rising prices, underlying liquidity conditions appear weak, with spot trading volumes hitting year-long lows.

Why Did This Happen?

The new year saw a rebalancing phase driven by geopolitical risk and liquidity positioning. Tax-related selling and year-end book cleanups in late 2025 capped upside potential, especially during U.S. hours. That pressure has eased, allowing a bounce.

A "clean-slate effect" has allowed cryptocurrency markets to reset, with $30 billion of Bitcoin and Ether futures leverage unwound since the October crash. This has resulted in leaner positioning and less speculative excess.

How Did Markets React?

Spot Bitcoin ETFs recorded $471.1 million in net inflows on the first trading day of 2026, with BlackRock's IBIT leading with $287.4 million. Ethereum ETFs added $174.4 million in inflows on the same day.

Bitcoin's recent surge above $92,000 led to increased activity from large holders, with $255 million in leveraged positions opened in the past week.

The ETF inflow momentum also extended to Fidelity's FBTC, which gained $88.1 million, and Bitwise's BITB, which added $41.5 million.

What Are Analysts Watching Next?

Despite the positive momentum, concerns about low liquidity persist. On-chain analytics firm Glassnode noted that both Bitcoin and altcoin spot trading volumes have fallen to their lowest readings since November 2023.

Smart money traders remain net short on Bitcoin for $108 million, with nearly $19 million in net short positions added during the past 24 hours. However, these traders are net long on Ether and XRP, signaling upside expectations for these coins.

Analysts are also monitoring institutional inflows and the regulatory landscape. Goldman Sachs upgraded Coinbase Global Inc to Buy, citing its shift to crypto infrastructure from trading. The bank also downgraded eToro Group Ltd to Neutral from Buy.

Morgan Stanley has filed S-1 registration statements with the SEC for spot Bitcoin and Solana ETFs. The Wall Street firm oversees approximately $6.4 trillion in assets under management and aims to meet growing client demand for regulated, exchange-traded exposure to digital assets.