Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin soared past $97,000 on Wednesday as the cryptocurrency finally aligned with a broader upswing in equities and precious metals, resulting in over $100 million in short positions being liquidated within a mere hour.
Source: TradingView
This breakout follows weeks of Bitcoin trailing behind conventional assets, with QCP Capital observing that the digital currency has successfully breached the $95,000 resistance level that has limited rallies since November.
The upward movement indicates a strengthening risk-on atmosphere fueled by stable U.S. inflation and a robust job market, establishing what QCP refers to as a “Goldilocks environment” where investors are increasingly investing across everything from stocks to precious metals and now crypto.
In spite of geopolitical tensions in Venezuela and Iran, markets have shown resilience, interpreting U.S. involvement as a reaffirmation of global leadership instead of a source of instability.
Trump’s Economic Agenda Boosts Market Confidence
QCP posits that political dynamics are propelling the rally, asserting that President Trump is intent on achieving new highs in the equity markets ahead of the midterm elections this year.
“The market is convinced that Trump will do anything to Make America Great Again, with his measure of success being new highs in equity markets,” QCP remarked in its analysis.
The firm perceives abundant liquidity and renewed American leadership as Trump’s main strategies, naturally leading to U.S. outperformance and a global risk-on climate.
Nevertheless, traditional markets displayed signs of stress on Wednesday as Wall Street declined for a second consecutive session.
The S&P 500 slipped 0.7%, and the Dow Jones Industrial Average fell by 182 points, impacted by mixed bank earnings that failed to meet investor expectations.
Wells Fargo tumbled 4.6% on disappointing revenue, while Bank of America decreased by 3.8% despite surpassing profit forecasts, underscoring how high valuations have left little margin for error.
Meanwhile, precious metals continued their remarkable start to the year, with gold, silver, copper, and tin all reaching record highs as investors embraced the so-called debasement trade.
Source: YahooFinance
Silver surged by 6.1% to exceed $92 per ounce, while gold achieved yet another all-time high above $4,620, marking an impressive 65% increase in 2025.
Related Posts
“When gold leads the way, it typically indicates a decline in trust towards fiat currencies,” stated Hao Hong, chief investment officer at Lotus Asset Management, to Bloomberg. “Everything is evaluated against gold, making most assets appear inexpensive at this moment.”
Political Unrest Heightens Safe-Haven Demand
The rally in precious metals intensified following deadly protests in Iran that resulted in over 500 casualties, with Tehran warning of potential strikes on U.S. military bases should President Trump intervene.
Political uncertainty deepened when the Justice Department issued grand jury subpoenas to Federal Reserve Chair Jerome Powell regarding Senate testimony, putting pressure on the dollar and raising concerns about central bank autonomy.
Fed Chair Powell accuses Trump administration of using criminal threats to pressure rate cuts after DOJ grand jury subpoenas over renovation testimony, triggering bipartisan backlash.#Fed #Trump #DOJhttps://t.co/nKiwflcFWg
— Cryptonews.com (@cryptonews) January 12, 2026
Farzam Ehsani, CEO of crypto exchange VALR, cautioned that the situation poses a paradox for digital assets.
“On one side, diminishing confidence in dollar policy typically boosts interest in decentralized assets as a safeguard against political and currency risks,” he said.
“Conversely, sudden political actions and rising polarization within the government are increasing instability, prompting short-term outflows from riskier assets.”
Ray Youssef, CEO of the crypto app NoOnes, also pointed out that capital rotation, rather than panic, seems to be influencing market movements.
“The U.S. market is slightly down, but this is likely due to capital rotation, as investors are reallocating funds from riskier to more stable sectors,” he explained, adding that gold and Bitcoin are increasingly viewed as safe havens amidst macroeconomic chaos.
QCP regards Bitcoin’s recent underperformance in comparison to precious metals as a potential opportunity, suggesting that “the relative affordability of Bitcoin compared to precious metals at this juncture may encourage a shift towards digital assets.”
The firm acknowledged that risks persist, especially concerning impending Supreme Court rulings on tariffs (which have also been postponed again), and the possibility of escalation in Venezuela or Iran, but believes these issues are already factored into the pricing.
BREAKING: The US Supreme Court decides to NOT issue a highly anticipated ruling on the legality of President Trump’s tariffs today.
This marks the second-straight time the ruling was not released as expected.— The Kobeissi Letter (@KobeissiLetter) January 14, 2026
Youssef remained wary, noting that the crypto market “continues to experience active BTC selling during the U.S. trading hours” and that “no convincing reason yet exists for the cryptocurrency’s rapid price escalation.”
The post QCP Says Bitcoin’s Finally Waking Up After Lagging Stocks and Gold appeared first on Cryptonews.
