Markets entered a period of recalibration as US equities extended their losses for a second straight session amid shifting investor sentiment and geopolitical developments. The tech-heavy Nasdaq Composite led the retreat, falling one per cent to close at 23,471.75, while the S&P 500 dropped 0.53 per cent and the Dow Jones Industrial Average edged down just 0.09 per cent.
This rotation out of high-flying technology names reflected growing concerns about stretched valuations, compounded by external pressures such as China’s new restrictions on US cybersecurity software, which directly affect semiconductor giants like Nvidia and Broadcom. Investors appeared to favour economically sensitive sectors over growth-oriented tech, signalling a potential pivot in market leadership early in the year.
Global markets showed more resilience on January 15. Asian and European equities traded mixed or slightly higher, buoyed by optimism around artificial intelligence applications and signs that deflationary pressures may be easing in key economies. This divergence underscored a nuanced global outlook. While US markets grappled with domestic policy uncertainty and sector rotation, international investors focused on forward-looking catalysts in AI adoption and macroeconomic stabilisation.
Commodities and currencies also reflected this transitional mood. Crude oil prices plunged nearly three per cent, with West Texas Intermediate settling around US$60.22 per barrel after President Trump adopted a less confrontational tone toward Iran, alleviating fears of supply disruptions that had driven a five-day rally. Precious metals pulled back modestly from record highs, with spot gold hovering near US$4,610 per ounce. The US dollar held steady against the euro at approximately 0.85915 EUR per USD, suggesting stable foreign exchange dynamics despite underlying volatility in risk assets.
In stark contrast to the equity pullback, the crypto market advanced 0.89 per cent over the past 24 hours, extending a seven-day rally that has delivered a cumulative gain of 4.86 per cent. This momentum stemmed primarily from two powerful forces: a decisive technical breakout in Bitcoin and a surge in institutional demand through spot ETFs. Bitcoin shattered the US$95,000 resistance level that had contained its price action since December, climbing to US$97,000 on heightened volume.
The move triggered US$588 million in short liquidations, the largest since November 2025, fuelling a classic short squeeze that amplified upward momentum. With the Relative Strength Index now at 75.42, the asset sits in overbought territory, and traders remain fixated on the psychological US$100,000 milestone.
Simultaneously, institutional appetite reemerged with remarkable force. On January 13, spot Bitcoin ETFs recorded US$753.7 million in net inflows, the highest single-day total since October 2025. BlackRock’s IBIT fund alone attracted US$391 million, reinforcing the narrative that large financial players continue to view Bitcoin as a strategic macro hedge rather than a speculative instrument. This renewed confidence from traditional finance provided critical support amid lingering retail caution, effectively anchoring the broader crypto rally.
Sentiment metrics corroborated this shift. The Fear & Greed Index climbed to 54, moving from “Fear” into “Neutral” territory, up 11 points from the prior week. This improvement suggests that market participants are regaining composure after weeks of uncertainty, creating fertile ground for altcoin participation alongside Bitcoin’s leadership.
In my view, this moment marks a pivotal inflection point in the evolving relationship between traditional and digital asset markets. While US equities undergo a necessary correction, particularly in the overvalued tech sector, crypto is demonstrating increasing maturity through institutional validation and technical conviction. The juxtaposition is telling.
As political scrutiny intensifies around the Federal Reserve and banking regulations, and as geopolitical risks temporarily recede, capital seeks alternatives that offer both asymmetric upside and structural independence. Bitcoin’s breakout above US$95,000 is not merely a price event. It is a signal that the asset class is increasingly decoupling from short-term equity volatility and asserting its role within diversified portfolios.
Sustainability remains contingent on price holding key support. A failure to maintain levels above US$96,000 could invite profit-taking, especially given the elevated RSI. For now, the confluence of technical momentum, institutional flows, and improving sentiment paints a cautiously optimistic picture. Crypto’s rally may persist even as traditional markets navigate choppy waters.
Source: https://e27.co/nasdaq-tumbles-but-bitcoin-soars-past-us97k-on-massive-short-squeeze-20260115/
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
