Bitcoin staged a powerful mid-week rally, decisively breaking through the psychologically significant $95,000 barrier. The digital asset’s advance of more than 4.6% within a 24-hour period reflects a potent mix of institutional demand, favorable macroeconomic conditions, and potential regulatory clarity on the horizon in the United States.
Macroeconomic Tailwinds Boost Risk Assets
The rally coincides with a supportive “Goldilocks” economic scenario. Fresh inflation data showed the US Consumer Price Index for December came in at 2.7% year-over-year, precisely matching forecasts, with the core rate at 2.6%. Simultaneously, the unemployment rate dipped to 4.4%.
This combination of moderating inflation without a deteriorating labor market pushed the yield on the 10-year US Treasury note down to 4.17%. The resulting environment, characterized by increased liquidity and stable growth expectations, has bolstered investor appetite for risk assets. Major equity indices like the Dow Jones and S&P 500 reached new record highs, while gold also benefited, hitting a record near $4,639 per ounce.
Record ETF Inflows Signal Sustained Demand
Measurable buying pressure in the spot market is a primary catalyst for Bitcoin’s latest price surge. On January 13, US spot Bitcoin ETFs recorded net inflows of $754 million, marking one of the strongest single days in the first quarter of 2026. Fidelity led the pack with $351 million in inflows, followed by Bitwise with $159 million.
These investment vehicles now collectively manage approximately $123 billion in assets. This wave of institutional purchasing triggered a significant move in the derivatives market, forcing the liquidation of $269 million in short positions as Bitcoin surged past $94,000.
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Legislative Clarity Could Be a Game-Changer
A pivotal development is taking shape in the US Senate. The Digital Asset Market Clarity Act of 2025 is gaining concrete form, aiming to definitively delineate regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)—a long-standing point of contention. The Senate Banking Committee is reportedly targeting January 27 as a potential date for committee deliberation.
Analysts at Benchmark view the successful passage of such legislation as a “substantial risk reduction” for institutional investors. While details, such as the treatment of stablecoin yields on platforms like Coinbase, remain under discussion, the legislative progress is being closely watched.
Technical Landscape and Price Targets
From a technical analysis perspective, Bitcoin has established initial support around the $94,500 level, with immediate resistance seen near $96,800. Data from Blockhead Research indicates Bitcoin is currently trading above the average cost basis of active investors, which stands at $87,700, but remains below the cost basis of short-term holders at $98,900.
A sustained daily close above $98,900 is widely considered a prerequisite for a serious attempt at the $100,000 milestone. Prediction markets like Polymarket currently assign a 51% probability that Bitcoin will breach this six-figure threshold by February 1.
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