Bitcoin Surges as Record ETF Inflows Trigger Bearish Liquidations

Bitcoin surged above $95,000 on January 14, 2026, driven by strong inflows into U.S. spot ETFs and positive macroeconomic data according to TradingView analysis. The rise followed a $753.7 million net inflow into Bitcoin ETFs, marking the largest single-day total since October 2025. This shift in investor behavior signaled renewed institutional interest in the crypto market after a period of consolidation.

The U.S. Bureau of Labor Statistics reported that annual inflation remained steady at 2.7%, aligning with the Federal Reserve's target. This stability reduced expectations of aggressive rate hikes and encouraged investors to reallocate capital to risk assets, including cryptocurrencies. The broader market responded positively, with total crypto market capitalization rising above $3.3 trillion.

As Bitcoin broke key resistance levels near $94,000–$95,000, short sellers were forced to close positions. Over $290 million in bearish positions were liquidated within 24 hours, contributing to the upward momentum. The rally was supported by strong spot buying, rising open interest, and technical indicators suggesting potential movement toward $105,000–$110,000.

Why Did This Happen?

The surge in Bitcoin was fueled by a combination of factors. U.S. spot Bitcoin ETFs recorded significant inflows on January 13, with Fidelity's FBTC alone pulling in $351 million. This marked a shift in investor sentiment following a period of caution. Institutional investors, particularly those managing large portfolios, rotated back into crypto-linked products after year-end adjustments and tax-related selling in late 2025.

Ethereum ETFs also saw renewed interest, with $130 million in net inflows across five products. However, Ethereum's price movement remained muted despite the inflows, trading around $3,090. Analysts attributed this to the maturity of the asset, where large-cap assets typically exhibit smaller short-term price reactions to fund flows.

How Did Markets Respond?

Market participants responded with optimism to the improved macroeconomic conditions and the shift in risk appetite. The total cryptocurrency market capitalization reached over $3.22 trillion, with Bitcoin climbing back above $91,000 and Ethereum posting a 7.3% gain to $3,322.50.

In contrast, Ethereum holders, particularly large investors, began rotating capital into alternative projects with higher growth potential. One such project is Remittix, a payments-focused DeFi platform that has attracted attention for its real-world utility and strong incentives. Remittix has raised over $28.7 million and secured listings on BitMart and LBANK. The project is preparing for its main platform launch on February 9, 2026.

Analysts noted that Ethereum's ETF inflows have not translated into significant price appreciation in recent weeks. This has led some investors to seek alternative opportunities, particularly in projects like Remittix that offer clear milestones and utility-driven tokenomics. The platform's CertiK audit and KYC verification add credibility for larger investors.

What Are Analysts Watching Next?

Investors and analysts are closely monitoring the upcoming U.S. jobs data and potential Federal Reserve rate decisions. The stability in inflation has increased expectations that the Fed could pivot toward rate cuts later in 2026. This would further support risk assets, including Bitcoin and other cryptocurrencies.

Additionally, the performance of Solana and XRP ETFs has remained strong, with both categories seeing net inflows despite broader market volatility. Solana ETFs recorded a $41.08 million weekly inflow, while XRP ETFs posted a $38.07 million inflow. These figures highlight the diversification of investor interest within the crypto market.

The market is also watching how Bitcoin performs near key support levels, particularly around $89,400. If the price retests this level, it could trigger further short liquidations and potentially extend the rally toward $101,500. Traders are also analyzing the volume profile and order-book structure to anticipate potential price moves.

Overall, the current market environment reflects a shift in risk appetite, with investors selectively allocating capital to assets with strong fundamentals and clear use cases. The focus on projects like Remittix and the continued inflows into Bitcoin and Ethereum ETFs suggest that the market is preparing for a more structured and fundamentals-driven phase of growth.