After quite a lazy performance, Bitcoin at last decided to perform big. The most significant cryptocurrency surged to a two-month high, and reached $96,348, along with delivering a surprise to those who traded against it.
With the performance of Bitcoin, where risk assets and even precious metal joined its rally, the market was reminded that the cryptocurrency still has the capability to get the public eye whenever it wants.
$600 Million Disappears
The rally didn’t just lift prices, instead it undermined the bearish side of the trade. Over the previous 24 hours, short positions that are worth more than $600 million, which were mostly across crypto markets, got liquidated, with the major part of $290 million being associated with Bitcoin alone.
Also, it was more like a financial jump scare than a gentle reminder. This discomfort was reflected in the options market, as the bets that were positioned for downside were overtaken by Bitcoin’s sudden upward momentum.
Bitcoin is all set for 2026
The month of January which was bearish for Bitcoin, later on turned out to be quite the opposite. Bitcoin started 2025 with instability, where it lost more than 6% of its value after closing the previous year, which also ended in a range that was not inspiring at all.
Bitcoin, for the most part, was not even present at the rallies of stocks and gold, it was just there unimpressed. However, January 2026 very silently laid the foundation for a breakout.
The past week’s price hike has got the traders to think again, whether Bitcoin is about to be the champion of the asset classes once again or not. As per an analyst, the “gold catch-up” argument has become more persuasive, and Bitcoin is ready to claim it.
Justin d’Anethan, head of research at Arctic Digital said,
“Medium term, I think we could see investors allocate more to Bitcoin on a gold-catch-up narrative — and other risk-on assets are having a great time”.
Macro Drama
The broader macro context has sort of been a major factor in the revival of Bitcoin. The weaker than expected inflation data in the U.S was supportive, while the renewed uncertainty over the Federal Reserve’s independence made hard assets more attractive.
The geopolitical situation, which is wild from Venezuela to Iran, has only acknowledged the necessity for alternative value stores. In other words, the world is once again complicated, and Bitcoin is likely to be the one to benefit the most from the uncertainty being back in trend.
ETFs Indicate Institutional Trust
Institutional investors also came into the market along with retail traders. U.S-listed Bitcoin exchange-traded funds experienced an inflow of $754 million in a single day, which is the largest since the beginning of October.
Such demand is indicative of the fact that investors are not merely chasing a short quick return, but are laying the groundwork for a longer duration move. The ETF flows, for a market frequently labeled as purely speculative, provided a rare moment of institutional endorsement.
Aiming for $100,000 and More
Traders are looking, from a technical perspective, at a key resistance level now. A prolonged movement over $95,000 could pave the way to the psychologically important $100,000 mark. After that, the analysts highlight the 200-day moving average, which is approaching $106,000, as the next significant challenge.
The question of Bitcoin’s ability to ascend that high still remains to be seen, but for the time being, the bullish side is firmly backed by momentum, and the bearish side is quietly accepting the situation.
Bottom Line
The recent revival in Bitcoin’s price is a signal that in the crypto world, the dull moments do not last for a long time. One moment, the market is stuck in a range, and in the next moment it’s wiping out hundreds of millions in bearish bets and gaining six-figure price targets. Still, volatility comes with this, and it still has its ups and downs.
The combination of macro uncertainty, technical momentum, and fresh inflows have unarguably changed the overall sentiment to be positive. So, Bitcoin is once again living up to its reputation. It is specifically surprising those who are skeptical and betting against it.