Bitcoin Dips to $92K as Liquidations Top $440M
Bitcoin surged over 7% in early 2026, hitting $94,420 before a sharp selloff erased most recent gains, with its price recovering to $92,618. The rally stemmed from reduced year-end liquidity pressures and expectations of Federal Reserve rate cuts, which boosted risk assets and fueled net inflows to crypto ETFs. Despite the price jump, the rally remained cautious, with low leverage and volatility; a lack of strong bullish sentiment prevented further gains. The price drop and rebound triggered $440 million in liquidations, primarily impacting bullish traders. MSCI's decision not to exclude crypto treasury stocks like MicroStrategy from its indexes removed potential selling pressure and was viewed as positive for institutional investment. Market experts foresee short-term volatility, driven by specific events, but expect institutional allocations via spot ETFs to be the main long-term growth catalyst, especially for projects focused on infrastructure and real-world applications.
