Bitcoin Surges Past $95,000 as Short Liquidations and ETF Inflows Drive Momentum

• Bitcoin's breakout above $95,000 triggered $380 million in short liquidations, creating upward price pressure according to reports.
• U.S. spot Bitcoin ETFs recorded $753.7 million in net inflows, led by Fidelity, Bitwise, and BlackRock as data shows.
• Bitcoin's price movement was attributed to mechanical market activity and institutional demand, not speculative excess according to analysis.

Bitcoin's price surged past $95,000, breaking a two-month resistance level and triggering liquidation of leveraged short positions. This resulted in nearly $700 million in losses for short traders, with $380 million related to Bitcoin and $250 million to Ethereum. Analysts explained that the liquidation of short positions created upward price pressure.

The rally followed a prolonged consolidation phase and was amplified as Bitcoin broke key resistance levels. This led to the liquidation of over $290 million in short positions within 24 hours. Across the broader cryptocurrency market, total short liquidations neared $700 million. Analysts noted that Bitcoin is now testing former resistance levels as support, and if momentum continues, it could move toward the $105,000–$110,000 range according to market reports.

Record inflows into U.S. spot Bitcoin ETFs and a favorable CPI report also contributed to the price surge. U.S. spot Bitcoin ETFs recorded $753.7 million in net inflows, with Fidelity's FBTC, Bitwise's BITB, and BlackRock's IBIT leading the inflows. The rally was further amplified as Bitcoin broke key resistance levels as observed.

What Drives Bitcoin's Price Surge?

Bitcoin's recent price increase was driven by record inflows into U.S. spot Bitcoin ETFs and a weaker-than-expected CPI report, which reduced concerns about aggressive rate hikes. Short liquidations further added to the upward momentum as key resistance levels were broken according to market analysis.

The U.S. spot Bitcoin ETFs have seen significant institutional demand, with $753.7 million in net inflows. This is seen as a sign of renewed investor confidence and a shift in market sentiment. The favorable CPI report also eased concerns about aggressive rate hikes, contributing to a more bullish outlook as reported.

Analysts suggest that the surge in Bitcoin's price was not driven by speculative excess but rather by mechanical market activity and institutional demand. The funding rates in perpetual swaps remained subdued, indicating the price movement is not driven by speculative excess according to data.

What Are the Implications for the Market?

Bitcoin's breakout could signal a renewed bullish momentum and attract risk appetite, with traditional markets like equities and bond yields stabilizing. Joel Kruger noted that Bitcoin's breakout could attract risk appetite and indicate a shift in sentiment according to analysis.

If Bitcoin continues to gain momentum, it could move toward the $105,000–$110,000 range. Continued ETF inflows, reduced selling pressure from long-term holders, and corporate accumulation indicate strong underlying demand as market data shows.

However, further confirmation above $100,000 or $105,000 would be needed to validate a long-term rally. Funding rates in perpetual swaps remained subdued, indicating the price movement is not driven by speculative excess according to reports.

What Are the Key Risks to Consider?

Despite the positive momentum, analysts caution that further confirmation above key resistance levels is needed to validate a long-term rally. The market is still testing former resistance levels as support, and any failure to maintain these levels could trigger a pullback according to analysis.

The liquidation of short positions has added to the upward momentum, but this could also lead to increased volatility. Market makers are adjusting for imbalances from previous price declines, which could result in a more mechanical price movement as observed.

Investors should remain cautious as the market continues to test key levels. The surge in Bitcoin's price is not driven by speculative excess, but by institutional demand and favorable macroeconomic conditions according to market reports.