Analysts at Glassnode have noted improvements in the spot market for Bitcoin, the leading cryptocurrency. Trading volumes are increasing, and selling pressure is easing.
$BTC has pulled back from recent highs of $98K, slipping back into the low-$90Ks. Momentum has cooled but remains above neutral, indicating consolidation rather than a trend deterioration.
— glassnode (@glassnode) January 19, 2026
Read more in this week’s Market Pulse👇https://t.co/SqtQrQ3D8C pic.twitter.com/Z5ONm7bXM2
The company reported a "modest" increase in trading activity. The imbalance between buying and selling has breached the upper statistical limit, signaling a decrease in coin supply, although demand remains "fragile and uneven."
Experts believe the market is in a consolidation phase and is gradually restructuring. Internal conditions are improving, despite traders maintaining a defensive stance.
Gracie Lin, CEO of OKX in Singapore, stated that the market has already "digested" the profit-taking from late 2025. She noted that long-term holders are not selling assets on every bounce, while institutions are buying dips through ETFs.
In light of news about tariffs and record gold prices, investors are increasingly using Bitcoin to hedge their portfolios rather than for short-term speculation, Lin added.
Swissblock compared the current situation to that of 2022. The decline in network activity and liquidity resembles conditions from the previous cycle.
Network growth has hit lows not seen since 2022, while liquidity continues to drain. Back in 2022, similar network levels triggered a $BTC consolidation phase as network growth began to recover, even while liquidity remained weak and bottoming out.
— Swissblock (@swissblock__) January 19, 2026
History shows that the… pic.twitter.com/24sC3aoyAD
Analysts suggest that historical patterns indicate that the recovery of these metrics in the past has sparked significant bullish rallies.
As of this writing, the price of the leading cryptocurrency is $91,142.
A 2% daily drop in prices triggered $335 million in liquidations.
Source: CoinGlass.
Losses and Diminishing Sentiment
Julio Moreno, head of research at CryptoQuant, noted a significant shift in investor behavior. For the first time since October 2023, Bitcoin holders are realizing net losses over a 30-day period (a trend observed since late December).
Bitcoin holders realizing losses, for a 30-day period since, late December for the first time since October 2023. pic.twitter.com/OGsPYm8714
— Julio Moreno (@jjcmoreno) January 20, 2026
Researcher Axel Adler Jr. recorded a drop in the sentiment index from an extreme 80% to 44.9%. Previously, during a local peak at $97,000, the index was in the overheating zone.
A decline below the neutral mark of 50% signals a decrease in risk appetite. According to the analyst, a return above this level is necessary for price stabilization. Further declines to 20% would increase the likelihood of a deep correction.
Gold Sets New Records
Amid pressure on digital assets, gold has surpassed $4,700 per ounce for the first time in history. U.S. futures for the precious metal have also set new records.
Source: Gold Price.
Silver reached a new historical high of $95.
Source: Gold Price.
The rally in precious metals was triggered by deteriorating global sentiment following U.S. President Donald Trump's threats to impose new tariffs against European allies if Denmark refuses to sell Greenland.
According to Bitfinex, the Bitcoin-to-gold ratio has dropped by more than 50% from its peak.
Gold just made an ATH of $4700/oz
— Bitfinex (@bitfinex) January 20, 2026
This means the $BTC/Gold ratio is down 52% from ATHs.
Last time we were here, BTC went on to outperform gold.
Worth watching this cross as 2026 liquidity builds. pic.twitter.com/2K1zpGh4F2
“The last time we saw such values, the leading cryptocurrency subsequently outperformed the precious metal. It’s worth monitoring this intersection as liquidity builds into 2026,” analysts noted.
Outflows from ETFs and Risk Aversion
U.S. spot Bitcoin ETFs ended a four-day streak of inflows ($1.8 billion), recording a net outflow of $394.68 million on January 19.
Source: SoSoValue.
Farzam Ehsani, CEO of Valr, linked this to the market shifting into a "risk-off" mode. He stated that Trump’s aggressive trading rhetoric and the threat of tariff wars historically create a "strong headwind" for cryptocurrencies and other risk assets.
It’s worth noting that an expert using the pseudonym Darkfost observed an improvement in the "visible demand" for the leading cryptocurrency.