Bitcoin Price Analysis: BTC Taps $97,000 Despite High PPI, Whale Buying Outpaces Retail Selling
Bitcoin (BTC) briefly crossed $97,000 late on Wednesday, reaching an intraday high of $97,745 before dropping to $95,797. However, the flagship cryptocurrency has reclaimed $96,000 and is trading around $96,320, up 1.36%.
Price action pushed Bitcoin to an eight-week high as it diverged from US stock markets after higher-than-expected November PPI numbers.
On-chain data suggests the market is positioning itself for a potential upside as whale accumulation accelerates. According to Santiment, wallets holding between 100 BTC and 10,000 BTC have added 32,700 BTC since January 10, while retail wallets continue selling.
Coinbase Pulls Support For CLARITY Act
The crypto ecosystem is deeply divided over the crypto market structure bill, with Coinbase withdrawing support for the legislation. Prominent ecosystem figures have stated that the market structure bill requires considerable refinement, while others believe that some regulation is preferable to none. Chris Dixon, Partner at a16z Crypto, spoke in favor of the bill, stating that it gives some clarity around rules, giving entrepreneurs a fair chance.
Crypto builders need clear rules of the road. Over the past five years, Republicans, Democrats, and the Trump Administration have worked closely with members across the crypto industry to protect decentralization, support developers, and give entrepreneurs a fair shot. At its core, this bill does that.
Dixon urged industry executives and Congress to move forward with the legislation if the US were to become a leader in crypto.
It’s not perfect, and changes are needed before it becomes law. But now is the time to move the CLARITY Act forward if we want the U.S. to remain the best place in the world to build the future of crypto.
However, Coinbase withdrew support for the bill after CEO Brian Armstrong stated that it had too many issues and he could not support it in its current form.
There are too many issues, including a defacto ban on tokenized equities, DeFi prohibitions, giving the government unlimited access to your financial records, and removing your right to privacy, erosion of the CFTC’s authority, stifling innovation, and making it subservient to the SEC, [and] draft amendments that would kill rewards on stablecoins, allowing banks to ban their competition.
Crypto Fear & Greed Index Flips To “Greed”
The Crypto Fear & Greed Index flipped to “Greed” for the first time since October’s liquidation event. The index posted a sentiment rating of 61 on Thursday, indicating improving investor sentiment after weeks of “extreme fear” and “fear.” Market sentiment plummeted after the October 11 liquidation event, which wiped out $19 billion from the crypto market. The index fell to its lowest levels in the crash’s aftermath, dropping to nearly single digits in November and December.
However, overall market sentiment began to improve as Bitcoin (BTC) recovered, reclaiming $90,000 and reaching an intraday high of $97,704 before retreating.
Senate Banking Committee Cancels Thursday Markup
The United States Senate Banking Committee cancelled its scheduled Thursday markup of the crypto market structure bill, with Chairman Tim Scott stating that bipartisan negotiations must continue to gather support. Senator Scott stated,
I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith. This bill reflects months of serious bipartisan negotiations and real input from innovators, investors, and law enforcement.
The delay comes after the Senate Agriculture Committee also rescheduled its markup of the market structure bill, citing the need to gather more support.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) extended its recent uptrend for a fifth day as it tapped $97,000 before posting a marginal retreat. The flagship cryptocurrency rallied nearly 5% on Tuesday to cross $95,000 and settle at $95,384. Buyers retained control on Wednesday as the price rose 1.65% to $97,963 before settling at $96,955. Bitcoin is marginally up during the ongoing session, trading around $97,038.
Meanwhile, analytics platform CryptoQuant revealed that open interest in Bitcoin derivatives markets has dropped over the past three months. This has led to reduced leverage, setting up a potential bullish recovery. The platform noted a 31% drop in open interest on Bitcoin derivatives since October, calling it a diverging signal that helps remove excess leverage from the market. Pseudonymous analyst DarkFrost stated,
Historically, they have often marked significant bottoms, effectively resetting the market and creating a stronger base for a potential bullish recovery.
DarkFrost noted that this could be the case again. However, the analyst warned that if Bitcoin continues declining and enters a bear market, open interest could drop further, signaling deeper deleveraging.
The flagship cryptocurrency reached a two-month high, shrugging off high PPI numbers to cross $97,000, reaching $97,963. BTC/USD price action diverged from stocks after Producer Price Inflation (PPI) data came higher than expected. The Bureau of Labor Statistics confirmed that PPI for November 2025 was at 3% against an expected 2.7%.
The November increase in prices for final demand can be traced to a 0.9-percent advance in the index for final demand goods. Prices for final demand services were unchanged.
High inflation means stricter economic policy reactions from the Federal Reserve, leading to less liquidity for crypto and other risk assets.
BTC ended the previous weekend in positive territory, rising 0.99% to $91,494. Bullish sentiment intensified on Monday as the flagship cryptocurrency rose 2.60%, crossing $93,000 to $93,870. Selling pressure returned on Tuesday as the price dropped to a low of $91,203 before reclaiming $93,000 and settling at $93,722. Selling pressure intensified on Wednesday as BTC fell nearly 3% to $91,279. Sellers retained control on Thursday as the price briefly fell to a low of $89,200 before settling at $91,026.
Source: TradingView
BTC faced volatility on Friday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as the price fell 0.56% to $90,515. Price action was mixed over the weekend as BTC registered a marginal drop on Saturday before rising 0.54% on Sunday to $90,872. The price faced volatility on Monday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as BTC registered a marginal increase to $91,188. The flagship cryptocurrency rallied on Tuesday, rising nearly 4% to reclaim $95,000 and settle at $95,384. Buyers retained control on Wednesday as BTC rose 1.65% to $96,955. The flagship cryptocurrency is marginally up during the ongoing session, trading around $97,010.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.