Bitcoin extends gains as institutional demand and macro concerns keep sentiment constructive.
Bitcoin trades near recent highs as institutional demand supports market sentiment
Photo Credit: Unsplash/Kanchanara
Bitcoin traded higher on Tuesday, January 6, as the cryptocurrency market remained resilient amidst supportive macro signals and steady institutional interest. The world's largest cryptocurrency was priced around $93,300 (roughly Rs. 84.2 lakh), extending gains over the past 24 hours after a recent attempt to push past the $94,700 (roughly Rs. 85.4 lakh) level. Analysts said rising concerns over the US debt burden, now at a record $38.6 trillion (roughly Rs. 34,83,000 crore), are reinforcing Bitcoin's role as a hedge in the current macro environment. Ethereum (ETH) traded near $3,200 (roughly Rs. 2.90 lakh), consolidating after recent gains as broader participation remained selective. Bitcoin is priced near Rs. 84 lakh in India, while Ethereum trades around Rs. 2.90 lakh, as per the Gadgets 360 price tracker.
As traders balanced thin liquidity conditions against improving technical signals, market sentiment remained cautiously positive. Although Bitcoin has recovered important benchmarks like the annual open and the 50-day moving average, analysts pointed out that spot volumes are still low, and order books are shallow. In light of this, prices are now more vulnerable to minor flows, maintaining uneven conviction even when economic conditions offer a favourable environment for riskier assets.
Altcoins have followed Bitcoin higher, largely as a spillover effect rather than due to broad participation. XRP traded near $2.34 (roughly Rs. 211), extending strength amid ETF-related interest. Binance Coin (BNB) was priced around $905.24 (roughly Rs. 81,690), while Solana (SOL) traded near $137.74 (roughly Rs. 12,370). Dogecoin (DOGE) hovered around $0.15 (roughly Rs. 13.5).
Providing near-term market context, Akshat Siddhant, Lead Quant Analyst at Mudrex, said, “Institutional demand remains a key driver, with large corporates continuing to add to their BTC exposure. Meanwhile, ETF-related interest is also lifting select altcoins like XRP and Solana. With the trend still positive, upcoming data such as the JOLTS report and employment numbers could influence short-term price action.”
Commenting on the quality of the ongoing rally, Vikram Subburaj, CEO of Giottus, said, “The rally is unfolding in thin liquidity. Spot volumes remain low and order books shallow. This makes the market more sensitive to marginal flows. Treat this rally as provisional. Avoid leverage, focus on BTC, and look for confirmation through stronger volumes and depth before adding exposure. Pullbacks toward nearby support zones are healthier entry points than chasing strength in low-liquidity conditions.”
Looking at the broader trend, Avinash Shekhar, Co-Founder and CEO of Pi42, said markets continue to show resilience despite headline-driven volatility. “Rather than chasing momentum, it makes sense to focus on staggered accumulation during pullbacks while maintaining strict risk management. Diversification across high-quality crypto assets and a clear allocation strategy can help navigate near-term volatility.”
A combination of Bitcoin and Ethereum serving as anchors amidst improving technical structure and macro-driven interest, analysts concluded that the cryptocurrency market is still in a constructive but delicate phase. While altcoins may continue to move selectively rather than as part of a widespread rally, sustained upside is likely dependent on increased spot participation and confirmation from upcoming economic data.
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