Bitcoin Surges Past $96,000 as Record ETF Inflows Lead to Bearish Liquidations

Bitcoin (BTC) experienced a significant surge this week, breaking through the $96,000 barrier. This increase was fueled by renewed institutional interest and a decline in inflation concerns, enhancing market sentiment within the cryptocurrency realm.

Key Takeaways

Bitcoin surpassed $96,000 this week, supported by strong institutional demand and positive inflation reports.
U.S. spot Bitcoin ETFs saw a notable $753.7 million in inflows, indicating increased institutional investment in cryptocurrencies.
The latest CPI report showing steady inflation has reduced fears of aggressive rate hikes, favoring riskier assets like Bitcoin.
Significant short positions were liquidated, with total liquidations in the crypto market nearing $700 million.
Bitcoin is testing previous resistance levels as potential support, hinting at more upward movement if momentum continues.

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The price movement coincided with a robust inflow into U.S. spot Bitcoin exchange-traded funds (ETFs) and a U.S. Consumer Price Index (CPI) report that was less alarming than anticipated. This combination eased fears of stringent interest rate increases by the Federal Reserve.

This rally marked the end of a prolonged consolidation period where Bitcoin's price had remained stable for over a month. As it broke past critical resistance levels around $94,000–$95,000, many short sellers were compelled to close their positions, further driving the price upward.

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Institutional Demand Reflected in Bitcoin ETF Inflows

On Tuesday, U.S. spot Bitcoin ETFs saw net inflows of $753.7 million, marking the highest single-day amount since October. Fidelity’s FBTC topped the list with $351 million, followed by Bitwise’s BITB with $159 million and BlackRock’s IBIT with $126 million, according to data from SoSoValue.

This surge indicates that institutional investors are returning to crypto-related products after year-end portfolio reshuffling and tax-related selling impacted the market at the end of 2025. Interest in Ether-based ETFs also returned, witnessing $130 million in inflows across five different products.

Following the announcement of these inflows, Bitcoin saw a rise of around 3%, trading close to $94,600, and Ethereum gained over 6%, trading at approximately $3,320. The broader cryptocurrency market also rallied, pushing total market capitalization above $3.3 trillion.

Inflation Report Boosts Risk Appetite

The recent U.S. CPI report revealed that inflation remains steady at 2.7% year-over-year, aligning with market expectations. The lack of any unexpected inflation uptick alleviated worries about imminent rate hikes, supporting views that the Federal Reserve may consider rate cuts later in the year.

Expectations of lower real interest rates tend to bolster riskier assets, like cryptocurrencies, by reducing the costs associated with holding non-yielding assets, such as Bitcoin. U.S. stock markets also advanced, suggesting that the crypto rally is part of a larger trend in risk appetite rather than an isolated event.

As Bitcoin climbed past the $96,000 threshold, bearish positions were effectively eliminated. According to Coinglass, over $290 million in Bitcoin short positions were liquidated within a day, while only about $24 million in long positions were affected. In total, short liquidations across the cryptocurrency market approached nearly $700 million.

The surge was driven by strong spot buying, an increase in open interest, and significant technical breakouts. Bitcoin is currently testing previous resistance levels as new support, with chart indicators suggesting a potential upward movement toward the $105,000–$110,000 range if current momentum continues.

Although short-term consolidation might occur around the $98,000–$100,000 range, continued ETF inflows, the easing of sell-pressure from long-term holders, and ongoing corporate accumulation indicate that demand remains robust.

Cover image from ChatGPT, BTCUSD chart from Tradingview