Bitcoin (BTCUSD) climbed closer to a critical resistance level on Tuesday, trading just below the $94,000 mark as intensified buying activity from crypto bulls countered persistent bearish pressure in the market.
The world’s largest cryptocurrency has struggled to decisively break above the $94,000 threshold, a level it last reached in the previous year before experiencing a sharp reversal. Current price action reflects a tug-of-war between cautious sellers and renewed bullish interest driven by improving institutional sentiment.
Market data from major cryptocurrency exchanges showed that Bitcoin gained 1.12 percent over the past 24 hours. However, the asset has remained confined just below the $94,000 level, raising concerns among traders about the risk of a near-term pullback.
As of Tuesday, Bitcoin was trading at $93,845, supported by a surge in trading activity. Total transaction volume jumped by more than 32 percent to $45.23 billion within 24 hours, extending Bitcoin’s weekly gain to 6.80 percent amid broader strength across the digital asset market. This rally pushed Bitcoin’s total market capitalization to approximately $1.87 trillion, according to figures from CoinMarketCap.
Investor appetite was further boosted by news that global banking heavyweight Morgan Stanley has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch spot Bitcoin and Solana exchange-traded funds (ETFs). The move is widely seen as a significant endorsement of cryptocurrencies from an institution overseeing nearly $9 trillion in assets.
The filing follows regulatory shifts initiated during the Trump administration and comes amid sustained inflows into crypto ETFs across the industry. Analysts say Morgan Stanley’s entry into the space underscores growing institutional confidence and could broaden Bitcoin’s investor base, potentially driving longer-term demand.
Historically, approvals of spot Bitcoin ETFs—such as those granted in 2024—have preceded strong price rallies. Market participants view Morgan Stanley’s application as reinforcing Bitcoin’s position as a legitimate and maturing asset class. However, technical indicators are flashing signs of overbought conditions.
While such signals typically suggest the possibility of consolidation or short-term correction, analysts maintain that the broader trend remains constructive. A decisive break above the $94,000 resistance level could pave the way for further upside momentum.
On the regulatory front, developments in Washington are also influencing market sentiment. Senate discussions have intensified ahead of a January 15 markup deadline for crypto market structure legislation. Ongoing debates center on decentralized finance (DeFi) liability and provisions linked to former President Trump.
Political action committees aligned with Trump have reportedly received $21.5 million in donations from cryptocurrency firms, including Gemini, highlighting the industry’s growing involvement in shaping regulatory outcomes under a potential GOP-led framework.
Meanwhile, Coinbase’s Head of Institutional Research, David Duong, disclosed that approximately 33 percent of Bitcoin’s circulating supply—held in addresses with exposed public keys—could be vulnerable to future quantum computing attacks using Shor’s algorithm.
Although practical quantum computing is still estimated to be 10 to 15 years away, the concept of “store now, decrypt later” poses long-term risks to Bitcoin’s roughly $1.88 trillion market valuation. Developers are actively researching quantum-resistant upgrades, though the complexity of migrating the network remains a major challenge.
Crypto analysts broadly describe the quantum risk revelation as neutral to bearish over the long term, as it highlights structural security concerns without presenting immediate solutions.
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