The bitcoin price maintained its impressive momentum this week, breaking free from a multi-week trading range and surging past significant psychological thresholds as market players analyze macroeconomic data and fresh institutional interest. The bitcoin price surged to an eight-week high, resulting in approximately $700 million in short liquidations, according to data. Polymarket currently assesses a 73% probability that Bitcoin will hit the $100K mark by January. Following a period of trading that remained largely stagnant around the low-$90,000 mark for the past two months, bitcoin’s price started to pick up momentum over the weekend, ultimately climbing above $97,000 as of this writing. This marks its highest point in over two months. The rally, ongoing since January 14, showcases a blend of technical, macroeconomic, and sentiment factors that have rekindled bullish confidence throughout the crypto markets. The recent squeeze has driven the Bitcoin price past key resistance levels, pushing it toward new highs. This movement has led to the liquidation of speculative short positions, further intensifying market volatility. Bitcoin’s recent reclaim of the $94,000–$96,000 zone is being viewed as a significant breakout from its latest consolidation range.
The recent surge in Bitcoin’s value aligns with significant economic events unfolding in the market. The U.S. Consumer Price Index report released on January 13 indicated a moderation in inflation, alleviating concerns over additional aggressive monetary tightening and enhancing “risk-on” sentiment (think bitcoin) across global markets. As stocks and traditional risk assets showed only modest reactions, Bitcoin’s responsiveness to macroeconomic signals became clear, with investors looking for alternative stores of value and avenues for growth. Stable inflation figures have eased worries regarding high real yields, which have traditionally posed challenges for non-yielding assets such as Bitcoin. As inflation remains more contained than initially feared, traders and investors seem increasingly inclined to allocate capital to crypto, further supporting the ongoing rally. In a significant turn of events, the situation in Iran has escalated this week, marked by widespread protests against economic turmoil and government oppression. This unrest is occurring alongside a near-total internet blackout, with officials indicating the possibility of expedited trials and even executions for those detained. The ongoing crisis has intensified geopolitical risk, pushing traditional markets towards safe-haven assets and igniting increased volatility.
In the realm of digital markets, Bitcoin has demonstrated remarkable resilience and sparked renewed interest among investors, as BTC continues to rise even amid a broader risk-off sentiment. This week, the Department of Justice has initiated a criminal investigation into Federal Reserve Chair Jerome Powell, causing significant waves across the markets, including Bitcoin. The inquiry originates from Powell’s testimony in June 2025 regarding a $2.5 billion renovation of a Federal Reserve building, which he claims is driven by political motivations due to pressure from the Trump administration concerning interest rates. The intensifying conflict between the White House and the Fed has rattled U.S. markets, leading to a surge in safe-haven assets such as gold and bitcoin. In addition to technical factors and macroeconomic data, institutional demand has emerged once again as a significant catalyst for bullish momentum. Spot Bitcoin ETFs have seen significant inflows in recent days, with data indicating the largest net inflows since late 2025. This trend points to a resurgence of interest from long-term capital allocators and financial advisors. Furthermore, significant corporate Bitcoin holders have played a role in shaping the narrative. Strategy Inc., a prominent Bitcoin holder, revealed a significant $1.3 billion acquisition of BTC just before the recent price surge.
Despite the significant upward movement, there exists formidable resistance in the $97,000–$100,000 range that could challenge bulls, according to data. The market’s capacity to maintain these gains and keep absorbing inflows will be pivotal in assessing if the Bitcoin price can push this rally deeper into the weekend and beyond into 2026. Market sentiment, frequently assessed through indicators such as the Fear & Greed Index, is moving away from extreme fear and edging toward a more optimistic outlook, although it has yet to attain levels usually linked with blow-off tops.