Crypto Market Experiences a Setback as Risk-On Sentiment Grows

On January 6, the cryptocurrency market faced a decline after a period of consistent gains, with total market capitalization dipping to $3.2 trillion. Bitcoin saw a decrease of approximately 2.3%, settling around $92,000, despite the positive performance of equities. However, several altcoins like Dogwifhat, Sui, IOTA, and XRP witnessed significant increases.

Key Takeaways

The crypto market’s total capitalization decreased to $3.2 trillion.
Bitcoin's price fell by 2.3%, now around $92,000.
Several cryptocurrencies, including Dogwifhat and IOTA, experienced notable gains.
Wall Street's good performance and an increase in futures open interest indicates growing investor optimism.
Technical indicators suggest a potential price spike for Bitcoin if it surpasses the $94,492 resistance level.

Crypto market is down today (Jan. 6) yet risk-on sentiment spreads - 1

Market Overview

On Tuesday, the cryptocurrency sector pulled back after weeks of progressive growth. The total market capitalization settled at $3.2 trillion, influenced by Bitcoin's fall of approximately 2.3% to around $92,000. Despite this downturn, equities reached fresh all-time highs while futures positioning in digital assets continued to expand.

Noteworthy Gainers

Not all was bleak, as some cryptocurrencies thrived. Top performers in the last 24 hours include:

CRYPTOCURRENCY | PRICE | 7-DAY (+/-)
---|---|---
Dogwifhat (WIF) | $0.423 | +50%
IOTA (IOTA) | $0.1093 | +30%
Sui (SUI) | $1.85 | +30%
XRP (XRP) | $2.23 | +18.8%

Market Dynamics

As 2026 began, Wall Street enjoyed positive momentum, with major U.S. indexes reporting gains, and the Dow rising by nearly 1% to achieve new record highs. Commodities also experienced a surge, with silver climbing above $80 and platinum and palladium enjoying significant gains. Gold and copper also reached new peaks.

The cryptocurrency market reflected this bullish sentiment, as futures open interest skyrocketed, hitting over $145 billion—the highest since November 10, having increased from a December low of $123 billion. Bitcoin's open interest separately rose to more than $61.8 billion.

Investor Activity in ETFs

Interest in the crypto-related exchange-traded funds (ETFs) surged, with spot Bitcoin ETFs seeing inflows of over $697 million on Monday, up from $471 million on Friday. Additional inflows included over $168 million for spot Ethereum ETFs, alongside $46 million for XRP and $16.2 million for Solana.

Technical Analysis of Bitcoin’s Performance

Bitcoin price chart | Source: crypto.news

A detailed examination of Bitcoin’s technical indicators reveals why the crypto rally may be gaining steam. The daily chart indicates that Bitcoin’s price has risen from a low of $80,494 in November to the current $94,100.

Currently, Bitcoin is trading above the 61.8% Fibonacci Retracement level and has crossed the 50-day moving average. The Relative Strength Index and Stochastic oscillator are on the rise, indicating potential bullish momentum. If Bitcoin can push past the resistance level of $94,492, we could see further price increases across the cryptocurrency market.