Bitcoin has shattered the critical $96,000 resistance level, surging to a two-month high of $97,694 early Thursday, January 15. The flagship cryptocurrency is riding a wave of massive institutional demand, with U.S. spot ETFs recording three consecutive days of record-breaking buying. This sudden bullish momentum caught bearish traders off guard, triggering a massive Bitcoin short squeeze that liquidated over $678 million in leveraged positions across major exchanges.
Institutional Giants Drive Record Bitcoin ETF Inflows
The primary catalyst for today's rally is an undeniable resurgence in institutional crypto investment. After a period of year-end portfolio rebalancing in late 2025, Wall Street has returned to the crypto market with aggressive buying pressure. Data from SoSoValue and Farside Investors reveals that U.S. spot Bitcoin ETFs have absorbed over $1.5 billion in net inflows over the last 72 hours.
Leading the charge are industry titans BlackRock and Fidelity. BlackRock's iShares Bitcoin Trust (IBIT) alone saw inflows exceeding $648 million yesterday, while Fidelity's FBTC added another $125 million. This renewed appetite signals that institutional allocators are positioning themselves for the widely anticipated BTC 100k milestone, viewing the recent consolidation in the low $90,000s as a prime accumulation zone.
Short Sellers Capitulate as $96K Resistance Falls
The speed of the move above $96,000 created a textbook Bitcoin short squeeze. As prices ticked upward, bearish traders who had bet on a price correction were forced to buy back Bitcoin to cover their losing positions, adding fuel to the fire. On-chain data confirms that more than $678 million in short positions were liquidated in less than 24 hours, one of the largest wipeouts of bearish sentiment observed in crypto market news 2026 so far.
Macro Tailwinds: Cooling Inflation and Fed Hopes
Beyond the ETF frenzy, macroeconomic factors are aligning in Bitcoin's favor. The latest U.S. Consumer Price Index (CPI) report, released earlier this week, showed inflation holding steady at 2.7%, cooling fears of renewed aggressive rate hikes by the Federal Reserve. This stable economic backdrop has emboldened risk-on investors, driving capital out of cash and into high-growth assets like Bitcoin.
Furthermore, market jitters surrounding the Supreme Court's pending verdict on trade tariffs have ironically boosted Bitcoin's appeal as a non-sovereign hedge. With traditional markets facing potential volatility from the administration's trade policies, investors are increasingly treating Bitcoin as a safe haven, decoupling its price action from traditional equities.
Bitcoin Price Prediction 2026: Is $100K Next?
With the Bitcoin price today hovering just under $98,000, all eyes are on the psychological six-figure barrier. Technical analysts suggest that clearing the $97,500 zone opens the path to uncharted territory. If the current pace of Bitcoin ETF inflows sustains through the end of the week, analysts predict a test of $100,000 is imminent, possibly before the month closes.
Market observers note that the "supply shock" from the 2024 halving is finally meeting peak institutional demand. As over-the-counter (OTC) desks run dry, issuers are forced to buy directly from the spot market, creating upward pressure that could validate the most bullish Bitcoin price prediction 2026 models, which target $110,000 to $125,000 by Q2.
