Experts are noting signs of recovery in the Bitcoin market, with increased trading volumes and a shift in investor sentiment amid rising gold prices.
Analysts from Glassnode have observed encouraging trends in the Bitcoin spot market, with rising trading volumes and decreasing selling pressure indicating a potential recovery.
Bitcoin has pulled back from recent highs of $98,000, settling in the low $90,000s. Although momentum has cooled, it remains above neutral, suggesting a phase of consolidation rather than a downturn.
Read more in this week’s Market Pulse👇
— glassnode (@glassnode) January 19, 2026
The firm reported a "modest" rise in trading activity, with the buying-sell imbalance reaching upper statistical limits, signaling a reduction in coin supply. However, demand appears to be "fragile and uneven."
Experts suggest the market is undergoing a consolidation phase, with improving internal conditions despite a cautious approach from traders. Gracie Lin, CEO of OKX, noted that the market has absorbed profit-taking from late 2025, with long-term holders not selling on every price bounce, while institutions are capitalizing on price dips through ETFs.
Investors are increasingly viewing Bitcoin as a hedge against market volatility, particularly in light of rising tariffs and record gold prices, Lin added.
Swissblock highlighted that current conditions mirror those of 2022, with low network activity and liquidity reminiscent of previous cycles. They noted that network growth has hit lows not seen since 2022, triggering a consolidation phase despite weak liquidity.
Historically, recovery of these metrics has led to significant bullish trends.
— Swissblock (@swissblock__) January 19, 2026
As of now, Bitcoin is priced at $91,142, having experienced a 2% drop that resulted in $335 million in liquidations.
Investor Sentiment Shifts
Julio Moreno from CryptoQuant reported a notable change in investor behavior, revealing that Bitcoin holders are now realizing net losses over a 30-day period for the first time since October 2023.
For the first time since October 2023, Bitcoin holders are realizing losses over a 30-day period.
— Julio Moreno (@jjcmoreno) January 20, 2026
Research indicates a decline in the sentiment index from 80% to 44.9%, suggesting a reduced risk appetite. A return above 50% is deemed necessary for price stabilization, while a drop to 20% could indicate a deeper correction.
Gold Prices Surge
In the backdrop of declining digital asset values, gold has reached a historic high of $4,700 per ounce, with silver also setting a record at $95.
This surge in precious metals has been attributed to declining global sentiment following U.S. President Donald Trump's tariff threats against Europe.
As a result, the Bitcoin-to-gold ratio has dropped over 50% from its peak, prompting analysts to note that previous occurrences of such ratios often preceded Bitcoin outperforming gold.
Last time we saw such values, Bitcoin subsequently outperformed gold. It’s worth monitoring this situation as liquidity builds in 2026.
ETF Outflows and Risk Aversion
U.S. Bitcoin ETFs saw a net outflow of $394.68 million on January 19, ending a four-day inflow streak totaling $1.8 billion.
Farzam Ehsani, CEO of Valr, linked this trend to a shift towards a "risk-off" market stance, exacerbated by Trump's aggressive trade rhetoric, which historically poses challenges for cryptocurrencies and other risk assets. However, some analysts have noted an uptick in visible demand for Bitcoin despite these outflows.
