Bitcoin Wipes Out $600 Million in Bets, Triggering Price Surge Toward $100K

Bitcoin surged past $95,000 on January 14, triggering a massive short liquidation event that wiped out $603 million in bearish positions. The move came as U.S. inflation data fell below expectations, easing pressure on bond yields and improving liquidity conditions. The price rise led to nearly 122,000 traders being liquidated on crypto derivatives markets.

Spot Bitcoin ETFs recorded a record $753 million in inflows on Tuesday, driven by renewed institutional demand following year-end portfolio adjustments. Fidelity's FBTC led with $351 million in inflows, followed by Bitwise's BITB and BlackRock's IBIT. These inflows coincided with Ethereum also seeing $130 million in inflows, indicating broad crypto market strength.

Technical indicators show Bitcoin testing key resistance levels as the price approaches the 100-day EMA at $95,955.

A clean break above $96,000 would flip this level to support and open the path toward the 200-day EMA at $99,569. The RSI stands at 51.85, indicating a neutral stance after a recent rally.

Why Did This Happen?

The surge in Bitcoin began after the release of softer-than-expected U.S. inflation data, which reinforced expectations of continued rate cuts in 2026. This improved liquidity conditions and historically favored risk assets like crypto. The liquidation of short positions was largely driven by aggressive bearish bets heading into the inflation print, which quickly unraveled as prices rose.

Political developments also played a role. Reports that the U.S. Justice Department served grand jury subpoenas on the Federal Reserve earlier this week unsettled markets and weakened the dollar, making non-sovereign assets more attractive. This combination of macroeconomic and political factors created favorable conditions for Bitcoin's rally.

How Did Markets Respond?

The rally was accompanied by $100.16 million in net outflows on January 14, signaling that holders were using the strength in prices to exit positions rather than chase momentum. This created a divergence between price action and flow data, indicating caution among Bitcoin holders despite the bullish macroeconomic setup.

Ethereum outperformed Bitcoin, climbing over 7 percent to around $3,330, while major tokens like Solana, Cardano, and XRP also moved higher by as much as 9 percent. This broad-based rally was supported by improved sentiment and increased ETF demand.

What Are Analysts Watching Next?

Bitcoin is currently consolidating just below the Parabolic SAR at $95,314, with the RSI at a neutral 51.85. A close above $96,000 would flip both the SAR and the 100-day EMA to bullish indicators, confirming the triangle breakout. Conversely, failure to hold $95,000 could signal that the inflation-driven rally has exhausted its momentum.

Analysts are also monitoring the 200-day EMA at $99,569, which represents a key resistance level. A clean break above this level would target further gains toward $102,000. However, a breakdown below $94,500 would invalidate the short-term bullish case and expose the triangle's lower boundary near $91,000.

Institutional demand for Bitcoin is also being closely watched, with ETF inflows and product launches indicating deeper integration into traditional finance. Continued inflows could support price gains while tightening the liquid supply of Bitcoin, reinforcing the long-term bullish outlook for the asset class.