The post Optimism Returns With US Institutions as Bitcoin Reclaims $91K appeared on BitcoinEthereumNews.com.

Bitcoin bulls have reason for optimism as the new year begins. Three key on-chain metrics are flashing pre-bullish signals simultaneously: the Coinbase Premium Gap is bouncing back as institutional inflow recovers, the Fear & Greed Index has jumped, and the long/short ratio remains above 1.0 despite recent deleveraging. The largest cryptocurrency by market cap is trading around $91,700 at the time of publication. It recovered from lows near $87,000 seen in late December. However, sentiment remains fragile, and analysts urge caution amid lingering macroeconomic uncertainties. Sponsored Sponsored Institutional Capital Returns to the Market The Coinbase Premium Gap, which measures the price difference between Coinbase and Binance, has staged a notable recovery after plunging to -150 in late December. The metric is now approaching the zero line, suggesting that US-based investors—particularly institutions—are returning to the buy side after year-end selling pressure subsided. Source: CryptoQuant This shift is significant given Coinbase’s role as the primary gateway for regulated American capital. A sustained move into positive territory would confirm renewed dollar-denominated inflows, a key driver of previous Bitcoin rallies. Sentiment Climbing Out of Extreme Fear Market psychology is also improving. The Crypto Fear & Greed Index, which aggregates volatility, trading volume, social media sentiment, and market momentum to gauge investor emotions on a scale of 0 (extreme fear) to 100 (extreme greed), has risen from 29 last week to 40 today. This marks a clear move away from the “Extreme Fear” zone that typically signals capitulation. While readings vary across platforms—Coinglass shows 26 while Binance reports 40—the directional trend is consistently upward. Sponsored Sponsored Source: Binance Square Traders Maintain Bullish Bets Derivatives data support the cautiously optimistic outlook. The BTC long/short ratio has declined, but remains above 1.0. The ratio compares the volume of long (buy) positions to the volume of short (sell)…

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Filed under: News - @ January 5, 2026 1:10 am