Bitcoin is edging toward $90,000 as the US dollar posts its sharpest decline in years and the dollar index hovers near 96, a level linked to earlier crypto bull runs. With the greenback at its weakest since 2022 and policy signals from President Trump and Treasury Secretary Scott Bessent pulling FX markets in different directions, traders are watching whether sustained dollar weakness can reinforce recent gains in Bitcoin and Ethereum.

A quarterly survey by Coinbase Institutional and Glassnode (Dec 10, 2025–Jan 12, 2026) found 70% of institutions view Bitcoin as undervalued, with most holding or adding after a roughly 30% drawdown from the peak. CoinGecko data indicate BTC stayed below $90,000 this week as investors await the Federal Reserve's policy decision.

On Monday, gold broke above $5,000 and set a fresh record at $5,110 per ounce, while Bitcoin traded in the mid-$80,000s, well below its prior peak above $126,000. CoinShares reported $1.73 billion in weekly outflows, including $1.09 billion from Bitcoin, as the Dollar Index slipped to 96.7 and technical gauges from TradingView and InvestTech turned negative.

On Wednesday at the WEF in Davos, President Donald Trump said he aims to sign crypto market structure legislation "very soon" and vowed the US would be the "crypto capital," lifting risk assets. Bitcoin rose over 2%, moving back toward $90k after a $87,000 low, while tariff timelines for Feb 1 and June 1 kept macro tensions elevated.

The Senate Banking Committee scheduled a CLARITY Act markup for January 15, with amendment discussions expected later in the month. Draft provisions span SEC/CFTC roles, DeFi oversight, and stablecoin incentives, while institutional sentiment improves as Bitcoin nears the $100,000 threshold. The committee's direction will shape market structure and adoption expectations.

Bitcoin is fluctuating near $90,500 after pulling back from late‑2025 highs, with buyers defending dips and sellers capping gains below key resistance zones. Price action around $90,000–$92,650 is unfolding as a criminal investigation into Fed Chair Jerome Powell and political tension over interest‑rate policy add uncertainty ahead of the 28 January FOMC meeting. Technical readings show compressed trading ranges and mixed signals, with some indicators pointing to short‑term caution but others suggesting a possible breakout if $94,000 is cleared.

In early 2026, Bitcoin climbed above $93,000, extending a roughly 3.3% weekly advance and trading over $92,000 with support near $91,500. Traders are weighing bullish on-chain and technical indicators against lingering macro uncertainty and speculation over Venezuela's alleged 600,000–660,000 BTC stockpile, which some see as a potential supply shock for the market.

Bitcoin began 2025 at $93,000, hit over $126,000 in October, and traded just above $87,300 at publication, down about 6.5% for the year. On December 26, 2025, Maartunn said over 6.6M BTC were above spot and at a loss, while seven transfers totaling 13,904 BTC moved about $1.03 billion. TradingView shows stabilization near $88,700, with $86k–$88k support and $95k needed to regain momentum.

Bitcoin has gained more than 1.2% in 2025 and recently rebounded to around $94,000. Rising Japanese government bond yields — with the two-year briefly above 1% and the 20-year near 2.947% — risk pulling hundreds of billions of dollars back home and tightening global liquidity, pressuring Bitcoin, stablecoins and other risk assets. If Japanese yields hold above 2.9%, Bitcoin could drop 5–8% as yen carry trades unwind and investors rotate toward safer markets.