Bitcoin News Today: Bitcoin Rises Above $94,600 as ETF Inflows and Social Sentiment Fuel Risk-On Rally

Bitcoin climbed back above $94,600 in late December as traders rushed back into the market, driven by a surge in social media sentiment and fresh inflows into U.S. spot Bitcoin ETFs. A newly created address has accumulated 300 BTC, raising its total holdings to 1,200 BTC, signaling increased institutional or large-scale accumulation. The price action reflects renewed risk appetite and a growing belief in Bitcoin's potential to rally further.

Spot trading activity has outpaced futures volume, with data showing a stronger preference for direct asset ownership in late November compared to earlier in the year. This trend highlights a shift in investor behavior toward long-term holding rather than speculative short-term bets. The growing inflow of capital into regulated vehicles is seen as a positive structural development for the cryptocurrency market.

Market participants now await the outcome of the U.S. Federal Reserve's two-day FOMC meeting, with expectations that monetary policy could shape Bitcoin's near-term direction. Historically, rate cuts have supported Bitcoin's price by weakening the U.S. dollar and increasing interest in risk-on assets. However, past rate cuts have shown mixed effects, with Bitcoin sometimes experiencing short bursts of volatility after such events.

How Markets Reacted

Bitcoin's recent climb above $94,600 came amid heightened social media activity, with platforms like X, Reddit, and Telegram seeing a surge in bullish sentiment. This surge coincided with $151 million in inflows to U.S. spot Bitcoin ETFs for the month of December, indicating growing institutional and retail interest. As of now, Bitcoin is trading around $92,700, with its market cap rising over $50 billion in the process.

Glassnode's on-chain data highlights similar conditions to early 2022, a period marked by bearish sentiment and market consolidation. Metrics like elevated supply in loss and weak spot demand underscore the cautious approach of investors. Despite these signals, ETF outflows have continued in recent weeks, with IBIT recording a six-week losing streak. This divergence between on-chain and off-chain activity raises questions about market sustainability.

Meanwhile, long-term holders appear to be accumulating Bitcoin at current price levels. On-chain data shows a 2.1% increase in the number of addresses holding over 10,000 BTC in December, reflecting strategic accumulation by major investors. The RSI near 51 suggests balance between buyers and sellers, with technical momentum flattening.

What Analysts Are Watching

Crypto analyst Michael van de Poppe has dismissed notions of a bearish phase, maintaining a bullish outlook with a price target of $110,000 to $115,000 in the mid-term. He argues that Bitcoin's movement remains closely tied to beta stocks and risk-on sentiment, which is currently showing signs of improvement. Van de Poppe's view aligns with broader macroeconomic trends, where risk appetite is slowly returning to markets.

CryptoQuant analysts have also expressed caution about a potential "buy the rumor, sell the news" scenario if the Fed announces rate cuts before the end of the year. This pattern, observed in prior announcements, has led to short-lived surges followed by pullbacks. However, if the Fed signals balance-sheet expansion and further easing, Bitcoin could enter a renewed upward trend supported by ETF inflows and institutional demand.

On the derivatives side, a notable whale has taken a leveraged long position of 9,010.4 ETH on Hyperliquid using 5x leverage, indicating a continuation of risk-on sentiment in the derivatives market. The position's liquidation trigger is currently near $1,888.20, a level that could become a critical support zone if Ethereum experiences a pullback according to recent reports.

Risks to the Outlook

Despite the recent accumulation of Bitcoin and the positive ETF inflows, structural risks remain. A hawkish Fed or delayed liquidity expansion could prolong the consolidation phase into early 2026, with Bitcoin facing key resistance at $96,500 and support at $89,000. A break above $93,000 could trigger a move toward $96,000–$100,000, but a drop below that threshold could lead to a pullback to $86,500 before new demand emerges.

The correlation between Bitcoin and traditional risk assets remains a point of discussion. While Bitcoin has moved independently of broader risk-on trends in recent weeks, its beta of more than 0.5 to the Nasdaq suggests it remains sensitive to macroeconomic shifts. The recent rally, which saw Bitcoin rise nearly 3.4% in a single day, reflects a reversion in market sentiment rather than a sustained trend.

What This Means for Investors

Investors are advised to closely monitor both on-chain and off-chain indicators as Bitcoin navigates a period of uncertainty. On-chain metrics suggest that major holders are continuing to accumulate, but ETF outflows and weak spot volumes indicate lingering caution. The market remains highly sensitive to macroeconomic developments, particularly those involving U.S. monetary policy.

For institutional investors, the growing interest in regulated crypto vehicles offers a clearer path to exposure, while retail traders may find opportunities in the derivatives market. Whale activity in both Bitcoin and Ethereum highlights the continued presence of leveraged positions, which could amplify price swings in either direction.

Overall, the Bitcoin market is in a period of consolidation, with key resistance and support levels likely to determine its near-term trajectory. Analysts remain divided on the potential for a breakout, but most agree that the current environment is still structurally bullish for Bitcoin above the $90,000 level.