Bitcoin News Today: Can Bitcoin's $113k and Ethereum's $4k Gains Survive Volatility and Short-Seller Gambits?

Bitcoin Surges Past $113,000, Ethereum Breaks $4,000

Bitcoin and Ethereum have seen renewed strength in recent trading sessions, with BTC rising above $110,500 and ETH reclaiming the $4,000 threshold. The moves come amid shifting market dynamics, including easing Bitcoin ETF outflows, strategic short-covering by large players, and macroeconomic factors influencing risk appetite. Analysts and traders are closely watching whether these gains can hold amid lingering volatility and geopolitical uncertainties.

Bitcoin's recent price action has been characterized by a "proof-of-conviction" phase, according to Timothy Misir of BRN, as the asset tests key resistance levels. Despite a 3% decline in the past month, BTC has remained rangebound between $107,200 and $109,500, with open interest in options markets hitting record highs, according to The Block. The accumulation of put demand and concentrated short-gamma positions have amplified intraday volatility, raising concerns about sudden retracements if the $113,000 level is not retested. Meanwhile, institutional demand appears to be stabilizing. Data from SoSoValue shows nine of twelve U.S. Bitcoin ETFs recorded inflows on Tuesday, with BlackRock's IBIT leading the way with $210 million in net gains, as reported in a Bitcoinsistemi report. This reversal follows over $1 billion in outflows the previous week, signaling a potential early-stage rotation into altcoins ahead of year-end.

A notable development in the Bitcoin market involves a high-profile short-covering event. A wallet allegedly linked to former BitForex CEO Garrett Jin—though he denies any connection to the Trump family—closed a $227 million short position on Hyperliquid, securing $6.4 million in profits ahead of a 2% BTC rally, according to Coinotag. The timing of the trade, executed just before Bitcoin's rise to $110,500, has drawn attention from analysts and blockchain observers. This follows a similar short position taken by the same address prior to Trump's tariff threats, which triggered a $19 billion liquidation wave in October. The whale's activities highlight the strategic role of institutional players in shaping short-term crypto price movements.

Ethereum's resurgence above $4,000 has been fueled by broader risk-on sentiment and structural improvements in the network. The Pectra upgrade, which enhanced scalability and reduced transaction fees, has supported on-chain activity, with daily gas consumption stabilizing above 120 billion units, according to TradingNews. Macroeconomic tailwinds, including expectations of a 25-basis-point Federal Reserve rate cut, have also bolstered Ethereum's appeal. On-chain data shows a 42% surge in ETH futures trading volumes to $36 billion in 24 hours, reflecting renewed speculative interest. However, ETF outflows remain a concern, with Ethereum-linked funds posting $312 million in net redemptions last week.

The market's focus now turns to macroeconomic data, particularly Friday's CPI report, which could reanchor the soft-landing narrative and influence Bitcoin's trajectory, as noted by The Block. A reading near 0.2% would likely support BTC's upside momentum, while a hotter print could accelerate risk-off trades. For Ethereum, the $4,000 level is critical for maintaining its broader uptrend, with technical indicators suggesting a potential move toward $4,800–$5,000 if the 200-day EMA holds.