Bitcoin (BTC) surged past the psychological $94,000 barrier on Tuesday, January 6, 2026, fueled by a massive resurgence in institutional demand. In a decisive reversal from the sluggish performance seen in Q4 2025, U.S. spot Bitcoin ETFs recorded a staggering $697 million in daily net inflows—the highest single-day figure in over three months. As the crypto market rally gains steam, traders are eyeing new all-time highs, with major altcoins like Ethereum and XRP joining the upward momentum.
Institutional Giants Drive Massive ETF Inflows
The primary catalyst for today's price action is the renewed appetite from Wall Street. After a period of stagnation in late 2025, institutional investors have returned with force. Data from SoSoValue confirms that on January 5, the cumulative net inflows for U.S. spot Bitcoin ETFs hit $697.25 million, marking the most significant daily capital injection since October 2025.
BlackRock’s iShares Bitcoin Trust (IBIT) continues to dominate the landscape, leading the pack with $372 million in inflows alone. Fidelity's FBTC followed suit with strong figures, contributing approximately $191 million. This wave of buying pressure has effectively absorbed selling liquidity, pushing the Bitcoin price today back into bullish territory and signaling that the institutional accumulation phase is far from over.
Crypto Market Rally: ETH and XRP Join the Charge
Bitcoin isn't the only asset benefiting from the shift in market sentiment. The broader cryptocurrency market is flashing green, with the "Fear & Greed" index firmly shifting back into the "Greed" zone. Ethereum (ETH) has climbed steadily, trading around $3,228, while XRP has posted standout gains, rallying over 9% to reach $2.34—its highest level since November.
This broad-based rally suggests that investors are rotating capital across the ecosystem, confident that the crypto market rally is sustainable. With the Coinbase Bitcoin Premium Index turning positive for the first time in weeks, U.S. traders are once again paying a premium for BTC compared to offshore markets, a classic indicator of strong domestic demand.
Fed Liquidity and Macro Tailwinds
Macroeconomic factors are also playing a crucial role in this resurgence. Reports indicate that recent Federal Reserve repo injections have eased funding pressures, injecting billions in liquidity that often finds its way into risk assets. As global liquidity expands in early 2026, scarce assets like Bitcoin are becoming attractive hedges against monetary debasement once again.
BTC Prediction 2026: Is $250,000 Next?
With Bitcoin firmly establishing support above $93,000, analysts are revisiting their bullish BTC prediction 2026 targets. Fundstrat’s Tom Lee remains steadfast in his forecast, projecting that Bitcoin could reach as high as $250,000 this year, citing historical cycle patterns and the supply shock from continued ETF absorption.
Technically, the reclaim of $94,000 is significant. If Bitcoin can close the week above the $95,000 resistance level, technical analysts predict a swift move toward the psychological $100,000 milestone. However, traders should remain cautious of short-term volatility as the market digests these rapid gains.
How to Position for the 2026 Bull Run
For investors looking to buy Bitcoin or enter the market, the current landscape offers a mix of opportunity and risk. The strong ETF inflows provide a floor for prices, but the rapid ascent suggests that dollar-cost averaging (DCA) remains a prudent strategy. Whether through direct ownership or institutional crypto investment vehicles, exposure to digital assets appears increasingly essential in a diversified 2026 portfolio.
As the year unfolds, all eyes will be on the sustainability of these inflows. If BlackRock and Fidelity continue to see hundreds of millions in daily buy orders, the path of least resistance for Bitcoin remains decisively upward.
