Bitcoin Surges Past $96K on ETF Inflows & Inflation Data

The primary engine for Bitcoin’s surge was a dramatic return of institutional capital. U.S. spot Bitcoin exchange-traded funds (ETFs) recorded a staggering $753.7 million in net inflows on a single day, marking the largest daily haul since October. This data, sourced from SoSoValue, indicates a decisive rotation back into crypto-linked products after year-end portfolio adjustments and tax-related selling had previously dampened activity. Leading the charge were major financial institutions: Fidelity’s FBTC ETF attracted $351 million, Bitwise’s BITB gathered $159 million, and BlackRock’s IBIT saw $126 million in inflows.

This institutional endorsement provided a fundamental pillar of support for the rally. The inflows suggest that professional investors are re-engaging with Bitcoin as a core asset, moving beyond transient speculative interest. The positive sentiment spilled over into the Ethereum ecosystem as well, with Ether-focused ETFs collectively drawing $130 million in net inflows. Following the data release, Bitcoin’s price rose approximately 3% to trade near $94,600, while Ethereum gained over 6% to approach $3,320, demonstrating a correlated uplift across major digital assets.

Concurrently, a favorable macroeconomic backdrop provided the second critical catalyst. The latest U.S. Consumer Price Index (CPI) report showed inflation holding steady at 2.7% year-on-year, aligning with expectations and, crucially, containing no upside surprises. This data significantly reduced market anxieties about further interest rate hikes by the Federal Reserve, reinforcing the view that the central bank could pivot toward rate cuts later in the year.

For risk assets like cryptocurrencies, this development is profoundly supportive. Lower real-rate expectations reduce the opportunity cost of holding non-yielding assets such as Bitcoin, making them more attractive relative to interest-bearing securities. The rally was not isolated to crypto; U.S. equities also advanced, confirming that the move was part of a broader, macro-driven shift in global risk sentiment rather than a niche crypto event.

The combination of fundamental and macro forces propelled Bitcoin through key technical resistance levels between $94,000 and $95,000. This breakout from a month-long consolidation phase had a violent secondary effect: it forced a massive liquidation of bearish bets. Data from Coinglass reveals that more than $290 million in Bitcoin short positions were liquidated within 24 hours, compared to only about $24 million in long liquidations. Across the entire cryptocurrency market, total short liquidations neared $700 million.

This forced covering by short sellers acted as rocket fuel, accelerating the price ascent. The market dynamics now show strong spot buying, rising open interest, and a clear technical breakout. Analysts note that Bitcoin is currently testing former resistance levels as new support, with chart patterns indicating a potential continuation toward the $105,000–$110,000 range if the current momentum is sustained.

While short-term consolidation is possible near the psychologically significant $98,000–$100,000 zone, the underlying demand drivers appear robust. The sustained ETF inflows from giants like Fidelity and BlackRock point to persistent institutional accumulation. Furthermore, reduced selling pressure from long-term Bitcoin holders and continued corporate interest suggest a firm foundation for prices.

The week’s events have conclusively demonstrated that Bitcoin remains highly sensitive to both traditional financial inflows, as seen with the ETFs, and macroeconomic policy expectations from the U.S. Federal Reserve. The path forward likely hinges on the continuity of these two trends: institutional capital flows into regulated products like the FBTC, BITB, and IBIT ETFs, and a benign inflation environment that allows the Fed to maintain a less restrictive policy stance, supporting the broader risk asset complex.