Bitcoin ETFs Attract Record Inflows in 2026 as Price Surpasses $97K

Bitcoin spot ETFs attracted over $1.7 billion in inflows during a three-day streak in early January 2026, as the price of Bitcoin (BTC) climbed above $97,000 for the first time in two months. The inflows marked a reversal from earlier outflows in January and came as the Crypto Fear & Greed Index turned bullish.

The surge in demand was driven by renewed institutional interest and long-term accumulation strategies. BlackRock's iShares Bitcoin ETF (IBIT) led the inflows with $648 million in a single day, followed by Fidelity's Wise Origin Bitcoin Fund (FBTC) with $125.4 million according to reports. Other notable ETFs, including ARK Invest's ARKB and Bitwise's BITB, also saw significant inflows.

Bitcoin's price rise was supported by reduced selling pressure from long-term holders. Data from Lookonchain showed that a 12-year holder, who had previously accumulated 5,000 BTC, sold 500 BTC in early January. This activity, however, was methodical and did not trigger panic in the market. The whale's strategy was to sell gradually to reduce risk while maintaining a significant BTC position.

Why Did This Happen?

The inflows into Bitcoin ETFs reflect a shift in investor sentiment from caution to optimism. The three-day inflow streak followed a period of consolidation and tax-driven selling in late 2025. BlackRock and Fidelity played a key role in absorbing sell pressure, with BlackRock's IBIT alone accounting for over 40% of the daily inflows.

The Crypto Fear & Greed Index hit a level of 61, entering the "greed" territory for the first time since October 2025. The index reflects improved risk appetite among investors and aligns with Bitcoin's recent price recovery. A stronger institutional presence has also contributed to the shift, with companies like MicroStrategy continuing to accumulate BTC for corporate treasuries.

How Did Markets Respond?

Bitcoin's price climbed to $97,957 before retreating slightly to $96,642 at the time of writing. The price action triggered a surge in short liquidations, with over $360 million in BTC short liquidations in the 24 hours following the rally. The largest single liquidation occurred on HTX, wiping out a BTC-USDT position worth $34.9 million.

Bitcoin's whale activity also showed signs of reaccumulation. Whale addresses added 46,000 BTC in a week, marking the first time in over six months that one-year net change in whale holdings turned positive. This suggests that large holders are absorbing supply after a period of heavy distribution.

What Are Analysts Watching Next?

Analysts are closely monitoring ETF inflows and macroeconomic conditions as key drivers of Bitcoin's next move. Bitcoin needs to break above the 200-day EMA at $99,581 to confirm a sustained bullish trend. If the price holds above this level, it could signal the start of a new upward phase.

The broader crypto market also shows signs of recovery, with Ethereum (ETH) and XRP ETFs seeing increased inflows. Ethereum spot ETFs recorded $175 million in inflows on Wednesday alone, while XRP ETFs maintained steady demand despite a slight decline in inflows from $13 million to $11 million according to reports.

Bitcoin's next level of resistance is $100,000, a psychological barrier that has historically held back further gains. If institutional buying continues and ETF inflows remain strong, this level could become support rather than resistance.