Bitcoin Surges Above $96,000 to Eight-Week High, Eyes $100,000 Target Amid Macro Uncertainty

Bitcoin Reaches Two-Month High

Bitcoin consolidated around $95,000 during Wednesday's Wall Street open after reaching two-month highs near $96,500 ^[1]. The cryptocurrency first crossed the $96,000 threshold on Tuesday evening, marking its highest level since November 16 and representing nearly a 20% recovery from the local low of approximately $80,500 set on November 21 ^[2].

At the US market open, Bitcoin traded above $96,500, with year-to-date gains exceeding 10% ^[2]. This performance has allowed Bitcoin to outpace stock markets and gold so far this year, reversing the trend from 2025 when BTC declined while other asset classes posted strong gains ^[2].

Market Dynamics Driving the Rally

The recent price movement occurred despite heightened geopolitical tensions and US trade policy uncertainty ^[1]. Trading resource QCP Capital noted in its Asia Color market update that "Bitcoin has been lagging behind the equity market and precious metal rally, but it has finally pushed through the $95k level that capped rallies since November" ^[1].

US Bitcoin spot ETFs recorded inflows exceeding $750 million on Tuesday, marking the best day for these investment products since October 7, 2025, when inflows reached $875 million following Bitcoin's all-time high ^[2]. This strong institutional demand came as approximately $300 million in short positions were liquidated during Tuesday's 4.6% price increase, creating a short squeeze that amplified the rally ^[2].

Notably, Bitcoin's surge occurred while equity markets weakened, with the S&P 500 declining 0.2% and the Nasdaq 100 falling 0.15% on Tuesday ^[2]. This decoupling continued into the following session.

Macro Factors and Fed Tensions

The escalating conflict between Federal Reserve Chair Jerome Powell and US President Donald Trump appeared to influence market sentiment ^[2]. The Fed chair released a video statement clarifying that Department of Justice investigations concerned his monetary policy decisions, which Trump has repeatedly criticized, rather than statements about the Fed headquarters renovation ^[2].

US inflation data released Tuesday showed consumer prices rising 2.7% year-over-year, matching expectations, while core inflation increased 2.6%, below the anticipated 2.7% ^[2]. These figures, coming in at or below forecasts, were viewed positively by markets as they support the case for continued monetary policy easing ^[2].

QCP Capital argued that potential further currency debasement in the US, which has been driving precious metals higher, could trigger rotation into digital assets given "the relative cheapness of Bitcoin relative to precious metals at this point" ^[1].

Technical Outlook and Price Targets

Charles Edwards, founder of Capriole Investments, highlighted Bitcoin's first daily close above the 2025 yearly open level near $93,500 since January 6, stating this "opens up good odds of trend to $108K from here" ^[1]. He emphasized the importance of maintaining a weekly close above $93,500 to confirm what he called a bullish downside fakeout ^[1].

Trader Jelle identified a major breakout from a descending triangle pattern that had been in place since mid-November ^[1]. However, some analysts remained cautious. Trader CrypNeuvo warned that the move "could be a liquidity run towards the 1W50EMA" at $97,650, with Bitcoin potentially facing rejection at that resistance level ^[1]. He noted that breaking above $100,000, representing a 4% gain from current levels, would invalidate his bearish scenario ^[1].

Strategic Reserve Developments

Patrick Witt, senior director of the Presidential Council of Advisers on Digital Assets, confirmed in an interview with Crypto in America that the Bitcoin reserve remains on the White House priority list, stating "It's definitely still on the priority list right now" and promising "more on that later" ^[2]. Since the presidential decree issued in March 2025, no further public developments have occurred, and the government has not yet disclosed the exact amount of Bitcoin in state possession ^[2].

Hunter Horsley, CEO of Bitwise Invest, revealed a scheduled meeting with a central bank, commenting that "mainstream interest in bitcoin continues full steam ahead" ^[2]. A Bitwise study of US financial advisors found that 57% of those with existing crypto allocations plan to increase positions this year, while 18% of advisors without current exposure expect to establish their first allocation ^[2]. Additionally, 65% of advisors surveyed between October 31 and December 8, 2025, believed Bitcoin would reach $110,000 or higher within one year ^[2].