Quick Takeaways
- Bitcoin climbed above $97,000, marking its highest level in eight weeks
- Over $680 million in short positions were liquidated in 24 hours.
- Polymarket dealers now see over 60% odds of $100,000 in January.
Bitcoin soared to its highest level in nearly two calendar months after breaking above the $97,000 scar on Wednesday.
The rallying stretched forth a large-minded crypto recoil and flipped the differential coefficient position sharply, risk of exposure-on. Momentum built chop-chop as dealer hotfoot to unwind bearish bets.
The world’s largest cryptocurrency now trades comfortably above $97,000. It gained more than 4% over the past 24 hours.
Short Liquidations Accelerate the Breakout
The breakout triggered heavy forced deleveraging across derivatives markets. Data from CoinGlass shows that over $680 million in short positions were liquidated in one day.
Traders betting against bitcoin were caught offside as the price sliced through resistance levels that capped rallies since November.
Liquidations amplified upside pressure. Each forced buy pushed prices higher and pulled in fresh momentum traders.
This dynamic helped Bitcoin clear $97,300 with ease and maintain strength above that zone.
Altcoins Join as Market Breadth Improves
The rally spread beyond bitcoin, signaling healthier market participation. Ether, Solana, and BNB all posted solid gains as capital rotated across large-cap tokens.
Total crypto market capitalization climbed to nearly $3.4 trillion. The move followed weeks of sideways trading.
Improving breadth suggests growing confidence rather than a single-asset spike. Traders often view these conditions as more sustainable than isolated bitcoin pumps.
Institutional Flows Provide Structural Support
Institutional demand appears to be reinforcing the advance. U.S. spot bitcoin ETFs recorded roughly $750 million in net inflows on Tuesday. That marked their strongest daily intake in nearly three months.
Analysts say allocation-driven rallies tend to behave differently from leverage-fueled moves. Crypto lender Nexo noted that ETF inflows usually absorb supply gradually.
“When advances are led by allocation demand rather than leverage, volatility often stays contained early,” said analyst Iliya Kalchev.
This pattern may explain why Bitcoin’s rise has remained orderly despite sharp price gains.
$100,000 Target Gains Credibility
Speculative sentiment has shifted alongside price action. On Polymarket, traders now assign more than 60% odds that bitcoin reaches $100,000 before January ends.
Those odds rose sharply after bitcoin reclaimed levels that previously rejected upside attempts.
Psychological milestones often attract momentum capital. A clean move toward $100,000 could intensify that effect.
Still, traders remain cautious about near-term volatility around major round numbers.
Macro Backdrop Supports Risk Assets
The rally also aligns with a supportive macro environment. Analysts at QCP Capital described conditions as “Goldilocks.” They cited resilient U.S. labor data and stable inflation supporting risk appetite.
Equities, precious metals, and crypto have all benefited from improving sentiment.
Geopolitical risks have yet to disrupt markets meaningfully.
Tensions involving Venezuela and Iran failed to trigger sustained risk aversion. Oil prices absorbed a geopolitical premium without spilling into broader asset selloffs.
Policy Uncertainty Simpleness at the Margin
Markets also respond to legal developments in the United States. The Supreme Court of the United States declined to publish a ruling on the legality of tariffs married to Donald Trump.
That decisiveness removed a near-condition seed of dubiousness for investors.
Reduced policy risk often encourages positioning in volatile assets like crypto.
Outlook: Momentum Builds, But Risks Remain
Bitcoin’s eight-day high reflects a convergence of short cover, institutional demand, and supportive macro signals. The anatomical structure of the rallying come along healthier than in the past, capitulum driven purely by leverage.
Still, sustained upside will depend on follow-through purchasing and stable macro conditions. For once, momentum favors the Taurus the Bull, and the $100,000 degree no longer feels distant.
Markets will see closely to see whether bitcoin can break this prison-breaking into a live trend.