BTC Rises Largely as Record Bitcoin ETF Inflows Trigger Wave of Bearish Liquidations
Bitcoin (BTC) rose sharply this week, surpassing the $96,000 mark as renewed institutional demand and easing inflation concerns boosted sentiment across crypto markets.
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The move followed strong inflows into US Bitcoin exchange-traded funds (ETFs) and a softer-than-expected US Consumer Price Index (CPI) report, which lowered expectations of a strong interest rate hike by the Federal Reserve.
The rally ended a long-term consolidation phase that had kept Bitcoin trading on the sidelines for more than a month. As prices break through key resistance levels near $94,000–$95,000, short sellers are forced to close positions, adding more momentum to the upside.
BTC's price records important gains on the daily chart. Source: BTCUSD on Tradingview
Bitcoin ETF Inflows Signal Institutional Return
US spot Bitcoin ETFs recorded $753.7 million in inflows on Tuesday, the largest one-day total since October. Fidelity’s FBTC led the way with $351 million, followed by Bitwise’s BITB with $159 million and BlackRock’s IBIT with $126 million, according to data from SoSoValue.
The increase suggests that institutional investors are moving back into crypto-linked products after year-end portfolio adjustments and tax-related sell-offs are weighing on the market towards the end of 2025. Ether-focused ETFs also saw renewed interest, with $130 million in revenue across five products.
Bitcoin rose nearly 3% following the data, trading near $94,600 at the time, while Ethereum gained more than 6% to $3,320. It followed the broader crypto markets, raising the total market value to more than $3.3 trillion.
Depreciation Data Supports Risk Assets
The latest US CPI report showed inflation holding firm at 2.7% year-on-year, largely in line with expectations. The absence of an inflation surprise dampened inflationary fears and bolstered speculation that the Federal Reserve may focus on lowering rates later in the year.
Low real rate expectations often support risky assets, including cryptocurrencies, by reducing the opportunity cost of holding unproductive assets, such as Bitcoin. US stocks also improved, suggesting the crypto rally was part of a broader shift in risk sentiment rather than a one-off move.
Short Finish Adds Fuel to Rally
As Bitcoin passed $96,000, bearish positions were eliminated. Data from Coinglass shows that more than $290 million in Bitcoin short positions were liquidated within 24 hours, compared to $24 million in long liquidation. Across the broader cryptocurrency market, short closings reached $700 million.
Strong real estate buying, increased open interest, and the technology boom have contributed to this move. Bitcoin is now testing previous resistance levels as support, with chart patterns indicating a possible continuation in the $105,000–$110,000 range if momentum persists.
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While short-term consolidation is still possible near the $98,000–$100,000 area, continued ETF inflows, reduced selling pressure from long-term holders, and continued corporate accumulation suggest that fundamental demand remains strong.
Cover image from ChatGPT, BTCUSD chart from Tradingview
