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Bitcoin eyes longest daily winning streak in 3 months

2026/01/05 13:28
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Bitcoin eyes longest daily winning streak in 3 months

Bitcoin rose over 1% during Monday's Asian trading session, marking a potential five-day winning streak.

By Omkar Godbole|Edited by Sam Reynolds
Jan 5, 2026, 5:28 a.m.
BTC eyes longest winning streak in three months.

What to know:

  • Bitcoin rose over 1% during Monday's Asian trading session, marking a potential five-day winning streak.
  • The broader crypto market, including major cryptocurrencies like XRP, solana, and ether, also saw gains of up to 1%.
  • Tax-loss selling has subsided, one analyst said explaining the upswing, while others attributed the uptick to haven demand.

Bitcoin BTC$91,458.62 climbed over 1% during Monday's Asian trading session, positioning itself for a five-day winning streak, the longest since early October.

The leading cryptocurrency by market value jumped from roughly $91,480 to $92,500, CoinDesk data show. At one point, prices topped $93,000. Major alternative cryptocurrencies such as XRP$2.0742, solana SOL$134.08, and ether ETH$3,141.59 jumped 0.7% to 1%. The CoinDesk 20 and CoinDesk 80 Indexes rose 1.5%, pointing to a broader market cheer.

STORY CONTINUES BELOW
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"Market sentiment is improving, with both Bitcoin and Ethereum transitioning into bullish trend regimes," Markus Thielen, founder of 10x Research, who was recently voted as the top crypto analyst, said in a Telegram message to CoinDesk.

"We turned constructive following the late-December options expiry, anticipating that tax-loss selling would subside and that trading desks would regain flexibility to deploy risk into the new year," Thielen added.

BTC's daily gain/loss in percentage terms. (TradingView)

Bitcoin and the wider crypto market mostly remained depressed through December as U.S.-based holders supposedly liquidated their holdings at a loss to offset capital gains and reduce overall tax liability. Investors intentionally realize losses on underperforming assets to lower the tax owed on profitable sales.

Bitcoin underperformed Nasdaq, gold, and other precious metals through 2025, ending the year with a 6% loss. The performance was particularly weak during the North American trading hours in the final weeks of the year.

Bitcoin's latest uptick coincides with renewed geopolitical stress from the U.S. capture of Venezuelan President Nicolás Maduro. This rise is increasingly viewed as a sign of cryptocurrencies attracting safe-haven demand.

"We view the simultaneous surge across multiple asset classes following U.S. military action in Venezuela as a textbook flight to quality. Safe havens such as gold and silver are rallying sharply as investors price in elevated geopolitical risk that could persist or escalate," Ryan Lee, chief analyst at cryptocurency exchange Bitget, said in an email.

"Oil, for now, remains relatively contained around the $60 per barrel level, which helps limit immediate inflation pressure, but markets are clearly discounting the risk of future energy disruptions and tighter liquidity conditions that may compel the Federal Reserve to keep rates elevated for longer," Lee added.

Looking ahead, the bias remains bullish while BTC's price holds above the 21-day exponential moving average, according to Thielen.

"Early ETF inflows have been encouraging, and as long as Bitcoin holds above its 21-day moving average, the near-term bias remains skewed to the upside," Thielen said.

The 11 bitcoin spot exchange-traded funds (ETFs) pulled in over $471 million on Friday, the largest single-day tally since Nov. 11, according to data source SoSoValue.

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  • Institutional demand remains strong, with U.S.-listed spot XRP ETFs seeing $13.59 million in new inflows this week.
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Facts Vs. Hype: Analyst Examines XRP Supply Shock Theory

Prominent analyst Cheeky Crypto (203,000 followers on YouTube) set out to verify a fast-spreading claim that XRP’s circulating supply could “vanish overnight,” and his conclusion is more nuanced than the headline suggests: nothing in the ledger disappears, but the amount of XRP that is truly liquid could be far smaller than most dashboards imply—small enough, in his view, to set the stage for an abrupt liquidity squeeze if demand spikes. XRP Supply Shock? The video opens with the host acknowledging his own skepticism—“I woke up to a rumor that XRP supply could vanish overnight. Sounds crazy, right?”—before committing to test the thesis rather than dismiss it. He frames the exercise as an attempt to reconcile a long-standing critique (“XRP’s supply is too large for high prices”) with a rival view taking hold among prominent community voices: that much of the supply counted as “circulating” is effectively unavailable to trade. His first step is a straightforward data check. Pulling public figures, he finds CoinMarketCap showing roughly 59.6 billion XRP as circulating, while XRPScan reports about 64.7 billion. The divergence prompts what becomes the video’s key methodological point: different sources count “circulating” differently. Related Reading: Analyst Sounds Major XRP Warning: Last Chance To Get In As Accumulation Balloons As he explains it, the higher on-ledger number likely includes balances that aggregators exclude or treat as restricted, most notably Ripple’s programmatic escrow. He highlights that Ripple still “holds a chunk of XRP in escrow, about 35.3 billion XRP locked up across multiple wallets, with a nominal schedule of up to 1 billion released per month and unused portions commonly re-escrowed. Those coins exist and are accounted for on-ledger, but “they aren’t actually sitting on exchanges” and are not immediately available to buyers. In his words, “for all intents and purposes, that escrow stash is effectively off of the market.” From there, the analysis moves from headline “circulating supply” to the subtler concept of effective float. Beyond escrow, he argues that large strategic holders—banks, fintechs, or other whales—may sit on material balances without supplying order books. When you strip out escrow and these non-selling stashes, he says, “the effective circulating supply… is actually way smaller than the 59 or even 64 billion figure.” He cites community estimates in the “20 or 30 billion” range for what might be truly liquid at any given moment, while emphasizing that nobody has a precise number. That effective-float framing underpins the crux of his thesis: a potential supply shock if demand accelerates faster than fresh sell-side supply appears. “Price is a dance between supply and demand,” he says; if institutional or sovereign-scale users suddenly need XRP and “the market finds that there isn’t enough XRP readily available,” order books could thin out and prices could “shoot on up, sometimes violently.” His phrase “circulating supply could collapse overnight” is presented not as a claim that tokens are destroyed or removed from the ledger, but as a market-structure scenario in which available inventory to sell dries up quickly because holders won’t part with it. How Could The XRP Supply Shock Happen? On the demand side, he anchors the hypothetical to tokenization. He points to the “very early stages of something huge in finance”—on-chain tokenization of debt, stablecoins, CBDCs and even gold—and argues the XRP Ledger aims to be “the settlement layer” for those assets.He references Ripple CTO David Schwartz’s earlier comments about an XRPL pivot toward tokenized assets and notes that an institutional research shop (Bitwise) has framed XRP as a way to play the tokenization theme. In his construction, if “trillions of dollars in value” begin settling across XRPL rails, working inventories of XRP for bridging, liquidity and settlement could rise sharply, tightening effective float. Related Reading: XRP Bearish Signal: Whales Offload $486 Million In Asset To illustrate, he offers two analogies. First, the “concert tickets” model: you think there are 100,000 tickets (100B supply), but 50,000 are held by the promoter (escrow) and 30,000 by corporate buyers (whales), leaving only 20,000 for the public; if a million people want in, prices explode. Second, a comparison to Bitcoin’s halving: while XRP has no programmatic halving, he proposes that a sudden adoption wave could function like a de facto halving of available supply—“XRP’s version of a halving could actually be the adoption event.” He also updates the narrative context that long dogged XRP. Once derided for “too much supply,” he argues the script has “totally flipped.” He cites the current cycle’s optics—“XRP is sitting above $3 with a market cap north of around $180 billion”—as evidence that raw supply counts did not cap price as tightly as critics claimed, and as a backdrop for why a scarcity narrative is gaining traction. Still, he declines to publish targets or timelines, repeatedly stressing uncertainty and risk. “I’m not a financial adviser… cryptocurrencies are highly volatile,” he reminds viewers, adding that tokenization could take off “on some other platform,” unfold more slowly than enthusiasts expect, or fail to get to “sudden shock” scale. The verdict he offers is deliberately bound. The theory that “XRP supply could vanish overnight” is imprecise on its face; the ledger will not erase coins. But after examining dashboard methodologies, escrow mechanics and the behavior of large holders, he concludes that the effective float could be meaningfully smaller than headline supply figures, and that a fast-developing tokenization use case could, under the right conditions, stress that float. “Overnight is a dramatic way to put it,” he concedes. “The change could actually be very sudden when it comes.” At press time, XRP traded at $3.0198. Featured image created with DALL.E, chart from TradingView.com
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