.Bitcoin Re‑claims $95K+ as U.S. Inflation Holds Steady – Crypto Markets Rally
January 13 2026 – The cryptocurrency market surged on Tuesday, buoyed by softer U.S. price‑growth data that eased risk‑off sentiment. Bitcoin broke the $95,000 barrier, while the broader digital‑asset ecosystem posted double‑digit gains.
Market Overview
- Bitcoin: The flagship coin traded around $95,600, up roughly 5 % in a single session.
- Total Crypto Capitalisation: The aggregate market value climbed to ≈ $3.35 trillion, also a 5 % rise over the previous 24 hours.
- Top‑10 Coins: All ten major tokens posted gains. Ethereum neared $3,330 (+≈ 8 %), and Dogecoin led large‑cap performers with a 10 % jump to about $0.15.
Macro Catalyst – December CPI
The latest Consumer Price Index report showed that December’s core inflation (excluding food and energy) was 0.2 % month‑over‑month and 2.6 % year‑over‑year. Overall CPI rose 0.3 % on the month, keeping the annual rate at 2.7 %, exactly in line with consensus expectations. The data signalled that price pressures in the United States have halted rather than accelerated, giving investors a modest boost in risk appetite.
How the Data Fueled the Rally
- Risk Sentiment Shift – With the CPI figure confirming a pause in inflation, fixed‑income yields eased slightly, prompting a modest rotation back into higher‑risk assets, including crypto.
- Compressed Sell‑Side Pressure – Analytics firm Glassnode noted that Bitcoin’s sell‑side risk ratio fell back to levels not seen since October 2023, indicating that the market’s bearish pressure has thinned considerably.
- ETF Inflows – Spot Bitcoin exchange‑traded funds (ETFs) recorded net inflows of $116.7 million on Monday, lifting cumulative inflows to $56.5 billion. Ethereum ETFs also added a modest $5 million, bringing their total to $12.44 billion. The continued appetite for regulated crypto products helped sustain the upward move.
Trading Activity & Liquidations
- Liquidations: Approximately $159 million worth of positions were forcibly closed in the last day, according to Coinglass. Short positions dominated the outs, with $94.9 million liquidated versus $63.8 million on the long side. Bitcoin accounted for $44.1 million of the total, while Ethereum contributed $24.9 million.
- Top Movers (Top‑100 by Market Cap):
- Story (IP) surged by nearly 50 %, the day’s biggest gain.
- Monero (XMR) continued its multi‑day rally, climbing about 15 %, reflecting ongoing retail interest in privacy‑focused assets.
- Zcash (ZEC) and Midnight (NIGHT) were the only major assets to slip, each down roughly 3 %.
Equity Market Context
U.S. equities remained largely unchanged while market participants digested both the inflation numbers and early fourth‑quarter earnings for 2025. The S&P 500 edged up 0.1 %, whereas the Dow Jones Industrial Average fell about 35 points, underscoring a cautious, mixed‑signal backdrop for risk assets.
Analysis
The convergence of a stable inflation reading and fresh capital flowing into regulated crypto vehicles created a short‑term catalyst for the market’s rebound. While Bitcoin’s price action signals a return to the $95 K region, several risk factors remain:
- Persistence of “Fear” Sentiment – The Crypto Fear & Greed Index stayed in the “fear” zone for a third consecutive day, suggesting that many investors still view the rally as fragile.
- Sell‑Side Compression – Although the sell‑side risk ratio has contracted, the underlying conviction behind the current price levels appears modest, according to Glassnode’s commentary.
- Macro Uncertainty – Future CPI releases, potential changes in U.S. monetary policy, and the broader earnings cycle could quickly reverse the current optimism.
Nonetheless, the influx of institutional money through Bitcoin ETFs and the relative tightening of short‑side pressure provide a supportive backdrop for continued upside, at least in the near term.
Key Takeaways
- Bitcoin breaches $95 K for the first time in weeks, driven by a 5 % daily gain.
- Overall crypto market up 5 %, with total market cap exceeding $3.3 trillion.
- U.S. inflation held steady in December, easing risk‑off pressure across asset classes.
- Sell‑side risk ratio at its lowest since Oct 2023, indicating reduced bearish pressure.
- Spot Bitcoin ETFs see net inflows of $116.7 M, pushing cumulative ETF inflows above $56 B.
- Short liquidations outpace longs ($95 M vs $64 M), with Bitcoin responsible for $44 M of the total.
- Investor sentiment still cautious—the Fear & Greed Index remains in “fear” territory.
The next data releases—particularly upcoming CPI numbers and Federal Reserve commentary—will be crucial in determining whether the crypto rally can sustain its momentum or if the market will retreat back into the “fear” zone.
Source: https://thedefiant.io/news/markets/bitcoin-climbs-back-over-usd95k-as-traders-digest-new-inflation-data
