The recent surge in Bitcoin prices appears to be fueled by genuine spot demand on Coinbase. Data revealing increased spot trading activity on this platform indicates that the upward momentum is supported by actual purchases rather than leveraged bets in derivatives markets. This distinction is crucial because spot buying represents a real financial commitment, unlike temporary speculative positions.
Structural Demand Questions the Need for Risk Management
Since the news of Powell’s subpoena broke on Sunday, Bitcoin’s rally has been closely tied to spot buyers on Coinbase. Crypto analyst Alex Krüger pointed out on X that both the Adjusted Coinbase Premium and Cumulative Volume Delta (CVD) reflect consistent accumulation of Bitcoin at the spot level. This explains why this rally has been surprisingly unpopular even among bitcoin enthusiasts. For more than a month, prevailing sentiment across crypto communities suggested that BTC was underperforming while stocks and commodities were trending upwards.
Interestingly, this perception does not fully align with reality: nearly 40% of S&P 500 companies have actually closed lower so far in 2025 (precisely 39.2%). Much of what drives market sentiment is perception itself, and the Department of Justice’s action against Powell served as a significant macroeconomic test for Bitcoin’s resilience. According to Krüger, Bitcoin’s long-term appeal lies in its role as protection against extreme risks stemming from central bank mismanagement.
On Monday, BTC experienced a modest price increase. Krüger notes that an important technical battleground remains at the 50-week moving average (WMA), currently near $101,420. He also plans to take profits by targeting short liquidations just above $100,000.
The Institutional Flow Advantage for Bitcoin
The Digital Asset Market Clarity Act is scheduled for markup today—January 15th, 2026—in the Senate Banking Committee session. As reported by BTC_road_to200k on X (formerly Twitter), lawmakers will debate and finalize amendments before advancing this legislation.
This development holds significance because it aims to resolve ongoing regulatory ambiguities between two key agencies: the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). Such uncertainty has previously deterred large institutional investors from entering into Bitcoin or other digital assets.
Moreover, once enacted, this Clarity Act could mark a pivotal moment by establishing clear guidelines that boost confidence among banks, pension funds, and major investors alike—often translating into heightened demand and stronger price trends for BTC. As regulatory obstacles diminish, we may witness an influx of institutional capital into cryptocurrency markets—a decidedly bullish signal for Bitcoin’s future trajectory.