On January 16, 2026, West Virginia introduced a bill to let the treasury allocate up to ten percent of state funds to Bitcoin and other inflation-hedge assets meeting a $750 billion market cap. Arizona is advancing separate measures to accept Bitcoin for taxes with instant USD conversion, and to permit certain public funds to hold up to ten percent in a Bitcoin reserve.

Bitcoin hovered near recent highs after briefly touching about $98,000 a day earlier, with the next move hinging on U.S. institutional demand. GugaOnChain flagged the Coinbase Premium Index: renewed buying could push BTC above $100,000, while neutrality favors a $90,000–$100,000 range. On January 16, the Fear and Greed Index hit 61 as whales added more than 32,000 BTC since January 10.

Chainalysis reports Iran's crypto ecosystem reaching $7.78 billion by 2025 as inflation, protests and internet shutdowns drive adoption. On-chain volumes increased and funds moved to self-custody, with withdrawal growth across several brackets. The report also notes IRGC-linked wallets received over $3 billion in 2025, highlighting dual use by citizens and the state.

On January 16 2026, Jefferies global head of equity strategy Christopher Wood disclosed that he has fully removed Bitcoin from his model portfolio, where it previously held a 10% weighting. Citing accelerating advances in quantum computing, he argued that potential attacks on Bitcoin's cryptographic security could undermine its role as a long-term store of value and digital alternative to gold. Wood shifted the former Bitcoin allocation into 5% gold and 5% gold-mining equities while industry experts warn that millions of BTC could be exposed to future quantum threats.

Christopher Wood of Jefferies removed a 10% Bitcoin allocation from his model portfolio and shifted the exposure into physical gold and gold miners, citing quantum computing risk. He first added BTC in late 2020 and now warns that compressed quantum timelines could erode Bitcoin’s store‑of‑value appeal for long‑horizon investors.

On January 16, 2026, Ali Martinez flagged a weekly Supertrend sell signal for BTC, as the coin trades near $95,500 after a brief push to $98,000. Charts from Crypto Patel and Merlijn The Trader outline downside risk toward $50K–$87,500 or a rebound above $102,000 toward $110,000, while CoinGlass reported over $237 million in 24-hour liquidations.

Bitcoin traded about 9.5% above its Jan. 1 open at $87,500 as it hovered around $95,000, with traders focused on the $98,000 short-term holder cost basis as a key inflection level. Analysts highlighted support at the 21-day moving average near $91,200 and an ascending triangle setup targeting roughly $113,200 if resistance between $96,000 and $99,500 is cleared. Technical signals such as a multi-year trendline bounce, RSI recovery and a MACD cross were seen as underpinning expectations for further upside, provided bulls can maintain the current market structure.

Bitcoin’s latest advance has been powered largely by leverage and a major short squeeze that, according to Glassnode, marked the biggest short-liquidation event among the top 500 cryptocurrencies since 10 October 2025. As OG holders slow their selling and whales hedge by rotating into shorts while retail adds leveraged longs, the rally appears more fragile and vulnerable to a corrective phase if funding cools and leverage unwinds.