Bitcoin has experienced a significant rally, fueled by substantial inflows into spot Exchange Traded Funds (ETFs). On Tuesday, U.S. spot Bitcoin ETFs saw a net inflow of $753.7 million, marking the highest daily total since October 7, 2025. This surge in investment has propelled Bitcoin's price, briefly reaching an intraday high of $96,755 on Wednesday.
Fidelity's FBTC led the inflows with $351 million, followed by Bitwise's BITB with $159 million, and BlackRock's IBIT with $126 million. The remaining portion of approximately $118 million was distributed among smaller products. The fact that multiple issuers experienced significant inflows on the same day indicates broad institutional engagement, rather than a single sponsor driving the flow through marketing or tactical positioning.
Several factors contributed to this resurgence. Analysts suggest that post-year-end reallocations, cooling CPI data, and progress on U.S. market structure legislation have played a role. Improved macro clarity following the latest U.S. CPI print and progress on market structure legislation in Washington also contributed to the positive sentiment. The Senate Banking Committee is preparing for a Thursday markup of a market structure bill expected to amend and vote on changes. Furthermore, the anticipation of lower interest rates has boosted the crypto market, as cryptocurrency prices tend to rise during periods of lower interest rates.
The recent rally has broken through key resistance levels, with Bitcoin surpassing the $95,000 mark, a level not seen since November 2025. This breakout is considered technically significant, signaling a bullish shift as momentum builds. Some analysts point to Fibonacci extensions, suggesting a potential path toward $103,165. However, to gain further traction, Bitcoin would need to overcome the November 11 high of $107,461.75.
While the current momentum is strong, a sustained move to $105,000 and beyond may face challenges. The Relative Strength Index (RSI) is correcting from its recent high, and a decline toward the 50 midline could flip the path of least resistance downward, potentially leading to a correction toward $90,000. Additionally, despite large holders accumulating at key levels, derivatives traders remain cautious, as indicated by a drop in futures open interest.
Beyond Bitcoin, other cryptocurrencies and crypto-exposed stocks have also benefited from the positive sentiment. Ethereum products saw roughly $130 million of net inflows, while altcoin ETFs linked to Solana and XRP also drew new money. Crypto-exposed stocks, including Strategy and Coinbase Global, have also experienced gains.
Overall, the Bitcoin market is showing renewed strength, driven by strong ETF inflows and improved market sentiment. While the short-term outlook appears bullish, reaching significantly higher levels like $105,000 may require overcoming technical resistance and a shift in derivatives market sentiment. The market will likely continue to be influenced by macroeconomic factors, regulatory developments, and the ongoing dynamic between spot demand and new supply.
