Bitcoin breaks through $94,000, the new cycle led by institutions officially begins

Bitcoin demonstrated a strong start in 2026. As of January 6th, BTC is trading at $93,918.49, up 1.23% in the past 24 hours, with a high of $94,762.07, and a market capitalization of approximately $1.88 trillion. Behind this price breakthrough lies not just a numerical jump but a profound shift in market structure — evolving from a speculative cycle driven by retail sentiment to a new era of asset allocation led by institutional capital.

Conclusive Evidence of Institutional Entry

Shift in the Traditional Wealth Management System in the US

Starting January 5th, U.S. banks have allowed 15,000 financial advisors to recommend Bitcoin ETFs with a 1% to 4% allocation to eligible clients, marking an official change in the traditional financial system’s attitude toward Bitcoin. The BlackRock Bitcoin ETF (IBIT) saw a net inflow of $287 million on its first trading day of the year, the largest single-day inflow in nearly three months. The entire spot Bitcoin ETF market recorded over $4 million in net inflows in the first five trading days of January, indicating that institutions are reassessing Bitcoin’s value as an asset class within portfolios.

Accelerating Corporate Balance Sheet Strategies

Corporate Bitcoin holdings have shifted from pilot programs to systematic strategies. According to the latest data, global listed companies (excluding mining firms) hold a total of 923,680 Bitcoins, with a current market value of about $85.78 billion, representing 4.62% of circulating supply. This proportion continues to rise, reinforcing long-term bullish market expectations.

Specifically, MicroStrategy continues to add 1,287 Bitcoins, bringing its total holdings to 673,783, while increasing USD reserves by $62 million to $2.25 billion. Japanese listed company Metaplanet invested $451 million over the past week to acquire 4,279 Bitcoins, with total holdings surpassing 35,102, making it the largest institutional buyer this week.

Fundamental Shift in Market Structure

From Retail-Driven to Institution-Driven

Data shows that retail inflows on exchanges like Binance have significantly declined, while institutional capital share continues to rise. According to recent analysis, over 90% of the recent weekly capital inflows come from institutions, with retail participation markedly decreasing. This reflects a key transformation: Bitcoin is shifting from a highly volatile speculative asset to a “risk asset” within institutional portfolios.

Historic Decline in Volatility

Industry observers like Cathie Wood, CEO of ARK Invest, point out that Bitcoin’s actual volatility has fallen to historic lows, with its pricing model moving toward that of a mature asset like gold. This suggests that the deep 75%-90% retracements of the past may be replaced by more moderate corrections, and the traditional “four-year cycle theory” is losing its validity.

Geopolitical Variables on the Supply Side

Market sources indicate that Venezuela is believed to have accumulated approximately 600,000 Bitcoins (worth over $60 billion) through oil and gold settlements, comparable to holdings of MicroStrategy and BlackRock. If this portion of assets is frozen by the U.S. or incorporated into strategic reserves, it would directly reduce the circulating supply in the market, providing a medium- to long-term bullish signal for Bitcoin. This potential supply-side change sets the stage for future price movements.

Policy and Regulatory Support

Starting in 2026, the International Accounting Standards Board (IASB) will implement historic reforms, potentially granting Bitcoin and other digital assets a new accounting classification, which will enhance transparency for listed companies holding these assets and improve valuation logic. Meanwhile, discussions around the U.S. strategic Bitcoin reserves are also progressing, further strengthening Bitcoin’s position as a strategic asset.

Guidance on Institutional Price Targets

Citibank’s latest report sets a 12-month target price for Bitcoin at $143,000, with an optimistic scenario reaching as high as $189,000. Analysts from JPMorgan and others have also raised their fair value targets for Bitcoin to nearly $170,000. These price expectations from top global financial institutions reflect a reassessment of Bitcoin’s long-term value.

Summary

Bitcoin breaking through $94,000 is not just a new high but a milestone in market structure transformation. Continuous institutional inflows, systematic corporate allocations, regulatory support, and policy backing form a new support system. The characteristics of this new cycle include declining volatility, more professional participants, and rational valuation reappraisal. From retail-driven “four-year cycles” to institutional “long-term allocations,” Bitcoin is completing its transition from a speculative asset to a strategic asset. The key moving forward is whether this new order can be sustained and reinforced, rather than short-term price fluctuations.