Bitcoin surpassed the $95,000 level during Wednesday’s Asian trading session. A structural repricing drives the advance as Washington moves toward a comprehensive legislative framework for digital assets.
The rally follows a surge in institutional participation. U.S. spot ETFs recorded $2.4 billion in net inflows over the trailing 72-hour period. Bitcoin traded at approximately $95,325 on Wednesday morning in Asia, posting a 4.4% daily gain.
The move lifted the total cryptocurrency market capitalization to $3.33 trillion. Major assets followed the lead. Ethereum rose to $3,321 and XRP climbed to $2.17, recording gains of 6.7% and 5.6% respectively.
Policy Clarity and Market Dominance
Analysts attribute the price action to a definitive change in market structure. Cooling Consumer Price Index (CPI) data and Federal Reserve rate stability shifted market focus toward the legislative roadmap in D.C. Codifying Bitcoin into institutional balance sheets effectively removed the regulatory risk discount that previously suppressed valuations.
The capital flight into Bitcoin appears in market dominance metrics. Bitcoin dominance reached 59.2%, a 42-month high. The data indicates a rotation of capital out of high-beta altcoins and into the sector’s primary collateral asset.
Market analyst DavidTheBuilder noted on CoinMarketCap that fresh policy uncertainty and Middle East tensions’re pushing investors toward alternative safe havens. On-chain data confirms short-term holders’re back in profit. Profitability historically reduces sell pressure.
Whale Repositioning and Dormant Wallets
On-chain data confirms high-net-worth entities’re buying ahead of legislative clarity. The number of wallet addresses holding more than 1,000 BTC increased by 12% since the latest legislative filing. Professional traders are front-running the expected shift in national digital asset policy.
Dormant addresses also began moving this week. Market analyst Tom Tucker observed activity from wallets that remained inactive for two years.
“A large batch of Bitcoin that last moved 18 to 24 months ago just woke up,” user @WhatIsTheTicker said. He described the activity as smart repositioning by mid-term holders.
Such movements often appear near market turning points. The lack of heavy exchange inflows suggests these holders are preparing for long-term custody rather than immediate liquidation.
Bitcoin Technical Resistance and Support Zones
The reclamation of $95,000 serves as a critical technical breakout. Analysts emphasize that Bitcoin must establish a strong weekly close above the $92,000 level to maintain its key moving averages.
Failure to hold this support could result in a consolidation phase or a retest of the $88,000 support level. The market remains focused on whether the current institutional bid can sustain momentum through the January 20 presidential inauguration.
Chain Street’s Take
The current price action represents a sovereign bid rather than a retail pump. The $2.4 billion in ETF inflows confirms the adults are back in the room.
Bitcoin dominance near 60% indicates the market views the asset as the base layer in a world of geopolitical tension. The regulatory discount just evaporated. The sovereign premium’s just beginning.
