Bitcoin price returns to $96,000, BTC ETF continues to attract funds, potentially triggering a new parabolic rally

On January 14, news, Bitcoin prices experienced a significant rebound this week, breaking through the $96,000 mark strongly, hitting a new high for the year and continuing the upward trend since January. Market analysis suggests that institutional funds flowing into Bitcoin via ETFs are becoming one of the core drivers pushing BTC prices higher.

Market data shows that Bitcoin reached a peak of approximately $96,654 during Tuesday evening trading hours, with a total increase of about 5% within 24 hours, after which the price stabilized above $95,000. Overall, this is Bitcoin’s best performance since November last year, indicating that bullish sentiment is regaining dominance.

From a capital perspective, institutional demand is a key support for this round of rally. According to SoSoValue, the US spot Bitcoin ETF saw net inflows of over $750 million in a single trading day, with funds concentrated in leading products. Among them, Fidelity’s FBTC has accumulated inflows exceeding $12 billion, with daily inflows over $350 million; Bitwise’s BITB also performed actively, with nearly $160 million in daily inflows. In summary, relying solely on ETF demand in the US market, Bitcoin’s price has already shown significant upward momentum.

On the macro front, the US December Consumer Price Index (CPI) increased by 2.7% year-over-year, in line with market expectations, easing investors’ concerns about inflation rebound. This has somewhat improved the overall risk asset environment. However, judicial uncertainties related to Trump’s tariff policies still exist, causing temporary disruptions to market sentiment.

Bitwise Chief Investment Officer Matt Hougan pointed out that the long-term demand for Bitcoin ETFs may be brewing a structural change in supply and demand. He believes that since the ETF launch in January 2024, the amount of Bitcoin absorbed has exceeded the new supply during the same period, but the price has not fully reflected this reality, partly because some long-term holders are still selling. Once selling pressure gradually diminishes, sustained ETF buying could trigger a “parabolic” rise in Bitcoin prices.

Additionally, the rapid price surge has also triggered a chain reaction in the derivatives market. CoinGlass data shows that in the past 24 hours, liquidations of crypto market short positions amounted to approximately $688 million, setting a new record high. Overall, ETF capital inflows, macro data improvements, and short covering together form the key background for Bitcoin’s short-term strength.