On Jan. 6, MSCI decided to keep Digital Asset Treasury Companies like Strategy in its global equity indices for the February 2026 review but froze key share-count metrics for these stocks. The move removes the risk of forced passive sell-offs yet severs the automatic buying mechanism that previously supported Strategy's large-scale Bitcoin-funded equity issuance model.

Florida Representative John Snyder sponsored HB 1039, and Senator Joe Gruters filed SB 1040 and SB 1038 to set up a state-run strategic cryptocurrency reserve that requires an average market capitalization of $500 billion for eligible assets. The legislation includes a conditional effective date of July 1, 2026, and, for now, only Bitcoin meets the criteria, with Ethereum around $380 billion.

Babylon, a protocol for native Bitcoin staking and lending, received $15 million via a BABY token sale to fund its trustless collateral infrastructure on Wednesday. The team is building vaults that let BTC serve as onchain collateral without wrappers or custodians, with Aave V4 testing planned for Q1 2026 and a joint launch targeted for April 2026.

In the first days of January 2026, Bitcoin accumulator addresses absorbed roughly 60,000 BTC while miners transferred about 33,000 BTC to Binance. This tug-of-war between renewed accumulation and rising miner outflows is unfolding as BTC trades back toward the low-$90,000 range, with on-chain flows and sentiment data pointing to a cautious but stabilizing market.

Bitcoin finished 2025 slightly negative at −6.36%, and prior cycles show years following drawdowns delivered gains of 35%, 95%, and 156%, averaging near 95%. Jesse Myers and Sminston With flag models that outline a $200,000–$300,000 base-case for 2026. Meanwhile, CryptoQuant metrics point to subdued momentum, with a 30-day average return of 0.0016 and a Sharpe-like ratio around 0.09.

In December 2025, Riot Platforms sold 1,818 BTC for $161.6 million at an average net price of $88,870, trimming holdings to 18,005 BTC. The figures, released in a January 6, 2026 operations update, accompanied production of 460 BTC and a deployed hash rate of 38.5 EH/s, as hashprice hovered near $37 per PH/s.

As geopolitical frictions escalate and traditional financial systems face pressure from state controls, Bitcoin is increasingly viewed as a politically neutral hedge and monetary insurance. Analysts note BTC's recent rebound toward a seven-week high near $94,725, with price currently around $93,740 and key support highlighted at $91,000 and $87,800. Market commentators also stress long-term holding through multiple 50% drawdowns and discuss supply zones that continue to cap upside momentum.

On January 7, 2026, Bitcoin slid to lows of $90,986 after facing rejection near the $95,000 resistance, before recovering to around $91,300. The move followed earlier gains tied to MSCI's decision not to remove certain crypto-treasury firms from its benchmarks and news of Morgan Stanley's spot Bitcoin and Solana ETF filing. Technical indicators on the 4-hour chart suggest sellers currently have an advantage, with key levels now clustered around $90,000 support and potential upside toward $95,000 and $100,000.