Bitcoin Approaches $97,000 as Crypto Market Extends Rally for a Second Day
Risk appetite rises amid strong inflows into spot Bitcoin ETFs and traders weigh potential U.S. tariff‑related rulings.
Market Overview
On Wednesday, January 14, the cryptocurrency market recorded its second consecutive day of upward momentum after a quiet holiday period. Bitcoin (BTC) was trading just under $96,900, up roughly 4.4 % in the last 24 hours and flirting with the $97 k threshold – a price level not seen since late 2023. The total market capitalization of all digital assets climbed to about $3.38 trillion, a gain of 3.4 % on the day.
All ten of the largest coins by market cap posted gains, with most advancing between 3 % and 6 %. Ethereum (ETH) led the large‑cap group, jumping about 7 % to a little over $3,350. Among the top‑ten, Tron (TRX) was the only token that moved sideways.
Technical Context: An Overhead Supply Zone
Glassnode analysts highlighted a developing “overhead supply zone” for Bitcoin. Their long‑term holder cost‑basis heatmap shows a dense cluster of positions accumulated between $93 k and $109 k. This concentration suggests that any sustained rise above current levels will need to absorb a substantial amount of existing supply before further upward thrusts become durable.
QCP Capital’s research note echoed the sentiment, noting that Bitcoin finally appears to be breaking free from the $95 k ceiling that has constrained the market since November. The authors argue that the recent price action could mark the beginning of a more prolonged uptrend, provided the overhead supply is digested.
ETF Inflows Boost Confidence
Spot Bitcoin exchange‑traded funds (ETFs) attracted their biggest net inflow in three months on Tuesday, pulling in roughly $754 million, according to data from Coinglass. Spot Ethereum ETFs also saw a notable surge, with about $130 million flowing in. These inflows signal renewed institutional and retail interest in directly holding the assets through regulated vehicles, reinforcing the broader risk‑on tone.
Macro‑Related Uncertainty
While the crypto market enjoys fresh optimism, investors are keeping an eye on developments in Washington. The U.S. Supreme Court is slated to release rulings on several pending cases, one of which concerns the legality of former President Donald Trump’s global tariff regime. Although the Court has not confirmed which specific cases will be decided, analysts suggest that an unfavorable ruling could reignite concerns over trade‑related inflation pressures and, by extension, impact risk‑off sentiment across risk assets, including cryptocurrencies.
Movers and Shakers
- Dash (DASH) emerged as the day’s top performer among the top‑100 coins, surging more than 40 % on heightened demand for privacy‑focused assets.
- Internet Computer (ICP) posted a 12 % rise, benefitting from renewed developer interest.
- On the downside, Bitfinex’s Leo Token (LEO) slipped 7 %, while the recently launched Canton (CC) fell about 5 %.
Derivatives Activity and Liquidations
The derivatives arena saw heavy turnover in the past 24 hours. Total liquidations topped $820 million, with short positions accounting for roughly $722 million of that figure. Long liquidations comprised the remaining $105 million.
Bitcoin alone was responsible for about $398 million in liquidations, followed by Ethereum ($250 million) and Solana ($32 million). Glassnode noted that this marked the largest short‑position liquidation event across the top‑500 crypto assets since the October 10, 2023 market crash, which had erased nearly $20 billion in leverage in a single day.
Key Takeaways
| What | Implication |
|---|---|
| Bitcoin near $97 k | A breach of this psychological barrier could trigger fresh buying from both retail and institutional participants. |
| Overhead supply zone | The $93 k–$109 k cost‑basis cluster may act as resistance; breaking through could herald a more sustained rally. |
| ETF inflows | Record‑size net inflows into spot Bitcoin and Ethereum ETFs suggest growing confidence in regulated exposure to the assets. |
| Macro risk | Pending U.S. Supreme Court decisions on tariff policy add a layer of uncertainty that could quickly shift sentiment. |
| High short liquidations | The recent unwinding of short bets indicates that bearish positions were caught off‑guard, potentially paving the way for further upside. |
Outlook
If Bitcoin can clear the $97 k mark and maintain momentum, the broader market may continue its upward trajectory, especially as further ETF inflows and a neutral stance on the Crypto Fear & Greed Index bolster sentiment. However, traders should remain vigilant of macro‑level developments, particularly the Supreme Court rulings that could reintroduce risk‑off dynamics. Technical analysts will be watching the overhead supply zone closely; a decisive break above it would likely validate the emerging bullish narrative, while a failure could see the rally stall and give way to corrective moves.
Source: https://thedefiant.io/news/markets/bitcoin-nears-usd97k-in-broad-crypto-rally-jan-14-2026
