## Market Shakeout After Bitcoin Breaks 93K: Geopolitical Shocks Trigger Liquidations, Funds Chase High-Beta Assets

**Bitcoin (BTC)** started 2026 with a strong momentum, currently trading at **$93.28K**, up **4.76%** for the week, demonstrating resilience and rebound strength in the face of unexpected events. Although it experienced a slight correction of 0.67% in the past 24 hours, from an initial brief drop of 0.5% to $89,300, the market quickly alleviated bearish sentiment and recovered within hours. This rapid rebound reflects institutional capital's stable support and retail traders' chasing of higher prices overlapping.

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**Geopolitical Risks Released, Liquidation Wave Spurs Buying**

Earlier this week, news of U.S. military actions sparked a sell-off in the crypto market. The U.S. successfully captured former Venezuelan President Nicolás Maduro and his wife Cilia Flores, who were indicted by the Southern District of New York and taken out of the country. This move initially raised concerns about escalating geopolitical tensions. Data shows that within 24 hours of the announcement, futures liquidations reached $180 million, with short positions forced to close at $133 million and long positions stop-lossed at $47 million. However, this wave of liquidations did not extend the downtrend; instead, it triggered short covering, with leveraged longs adding positions, turning short-term panic into upward momentum.

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**Meme Coins Dance Collectively, Funds Optimize Allocation**

As Bitcoin stabilizes its support, capital begins flowing into higher-risk assets. Dogecoin (DOGE) surged **17.96%** this week, currently priced at **$0.15**, with a 1-hour chart showing a golden cross (9-period moving average crossing above 26-period MA), and trading volume over 40% higher than the 30-day average. PEPE, after a short-term rally, has retraced **-6.03%** in the past 24 hours. Mainstream meme coins like Shiba Inu, Bonk, Floki also followed higher, with CoinGecko Meme Coin Index reaching a market cap of $33.8 billion and 24-hour trading volume surpassing $5.9 billion. The collective performance of these high-beta assets indicates that during Bitcoin's consolidation, investors tend to seek downside risk, reallocating some funds into projects with higher yield multiples.

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**Ethereum and Mainstream Coins Rise Together, Institutional Play Begins**

Ethereum (ETH) is currently priced at **$3.26K**, with a weekly gain of **9.24%**, outperforming Bitcoin's weekly performance, reflecting a market re-pricing of Ethereum ecosystem prospects. XRP also performed strongly, currently at **$2.33**, with nearly **23.59%** weekly increase, hitting recent highs. Mainstream ecosystem tokens like Solana (SOL) and Cardano are also rebounding, forming a multi-coin rally.

This broad rally signals initial signs of institutional capital inflow. According to recent outlooks from leading firms like Grayscale and Bitwise, 2026 is expected to mark the "beginning of the institutional allocation era," with Bitcoin's median price range projected at **$120,000-170,000**, and an optimistic scenario reaching $189,000. Among Bitwise's top ten forecasts, breaking the four-year cycle and reaching new highs is a primary expectation, driven mainly by spot ETF demand absorbing new mining supply (expected to exceed 100%).

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**Institutional Structural Entry, Fed Rate Cuts and Friendly Regulations Catalyze Growth**

In 2025, Bitcoin spot ETF saw a net inflow of $2.14 billion, with asset management giants like BlackRock continuing to buy, expecting further acceleration in 2026. Meanwhile, the Fed is expected to cut rates at least once more this year (traders price in two cuts), with the dollar remaining weak (down 9.4% in 2025). Low interest rate environments significantly reduce the holding costs of crypto assets. The new U.S. administration under Trump shows a friendly stance toward the crypto industry (potential deregulation, market structure bills), coupled with signs of central banks shifting toward digital assets. This will attract more sovereign funds and listed companies to participate. Additionally, growth in stablecoins and expansion of real-world asset (RWA) tokenization will further enhance Bitcoin's role as a store of value.

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**Technical and Risk Management**

In the short term, the key support level is at $90,000; if broken, a retest of $85,000 may occur. The main resistance is at the psychological level of $100,000. Investors should closely monitor liquidation data, the evolving situation in Venezuela, and Federal Reserve policy signals, while managing leverage positions to cope with volatility.

Long-term, the wave of institutional adoption and improved regulation will continue to drive the upside potential of crypto assets, especially Bitcoin. Short-term volatility may present opportunities for strategic positioning.