Bitcoin's price surpassed $96,000 for the first time since November, driven by a $300 million short squeeze and strong ETF inflows.
On January 14, Bitcoin's price climbed above $96,000, reaching its highest point since November, following a week of stable trading. Currently, Bitcoin is valued at $95,024, reflecting a 3.4% increase over the past 24 hours.
Max Gnatyshin, head of operations at Toobit in the CIS, highlighted that both Bitcoin and Ethereum started January with significant volatility, driven largely by increased demand for spot ETFs. He emphasized that Bitcoin's price movements are more influenced by macroeconomic factors and ETF inflows, while Ethereum's performance is tied to internal developments, such as technical upgrades and activity in decentralized finance (DeFi) and Layer 2 solutions.
"The trajectory of Ethereum compared to Bitcoin in 2026 will hinge on the adoption of layer-two solutions and staking dynamics," Gnatyshin stated.
QCP Capital analysts noted that Bitcoin had previously lagged behind gold and stock markets until it broke through the $95,000 resistance level, which had stifled its growth since November. They believe the current price reflects major macroeconomic risks, including geopolitical tensions and U.S. tariff policies, and predict that the depreciation of fiat currencies could lead to more capital flowing into digital assets.
"Any price dips should be viewed as buying opportunities unless new unknown factors emerge," QCP advised.
Charles Edwards, founder of Capriole Investments, pointed out that Bitcoin's recent close above the 2025 opening price of $93,500 is a significant technical indicator, the first such occurrence since January 6. He noted this could pave the way for a rise to $108,000, contingent on a weekly close above $93,500.
"This technical move opens up strong chances for Bitcoin to trend towards $108,000," Edwards remarked.
However, some traders expressed caution. A trader known as Roman described the current price dynamics as potentially bearish, citing rising prices amid declining trading volumes. He suggested a possible drop to $76,000, with a potential retest of the $100,000 mark.
Another analyst, CrypNeuvo, cautioned about resistance at the 50-week exponential moving average around $97,650, indicating that the current price rise might just be a liquidity grab before a potential pullback.
Impact of Short Sellers' Liquidations
The recent price spike led to substantial liquidations in the derivatives market, with traders losing approximately $588.93 million due to forced closures of short positions, $292.59 million of which was related to Bitcoin. Vincent Liu from Kronos Research characterized this phenomenon as a "sharp short squeeze," supported by notable inflows into U.S. spot Bitcoin ETFs, which reached $753.73 million on January 13, the highest since early October.
Justin d’Anethan, head of research at Arctic Digital, linked the surge in Bitcoin's price to a broader capital shift towards hard assets amidst slowing inflation and pressure on the Federal Reserve from the U.S. Treasury.
