Bitcoin Surges Past $97,000 as ETFs Attract $1.7 Billion in Three-Day Inflow Surge

Strongest ETF Inflows Since October

Bitcoin's price broke decisively above $97,000 this week, reaching levels not seen in more than two months, as U.S. spot Bitcoin exchange-traded funds experienced their most significant inflow streak since last fall ^[1].

On Tuesday, the twelve U.S.-listed spot Bitcoin funds recorded approximately $760 million in net inflows, representing the largest single-day total since October ^[1]. Fidelity's Wise Origin Bitcoin Fund led with around $351 million in inflows, while Bitwise's BITB and BlackRock's iShares Bitcoin Trust also posted substantial gains ^[1].

The momentum intensified on Wednesday, with spot Bitcoin ETFs attracting an additional $843.6 million ^[1]. This extended the positive streak to three consecutive days, bringing total inflows over that period to approximately $1.71 billion ^[1]. Eight of the twelve funds reported net inflows, with BlackRock's IBIT alone drawing in $648 million, highlighting its dominance among institutional allocators ^[1].

Price Action and Market Impact

Bitcoin's price movement reflected the renewed institutional interest. After trading below $92,000 throughout much of November and December, BTC reclaimed the $94,000–$97,000 range this week ^[1]. The rapid ascent triggered roughly $700 million in short liquidations, amplifying volatility and accelerating the rally ^[1].

At the time of reporting, Bitcoin was trading at $97,046, up 2% over the previous 24 hours, with approximately $67 billion in daily trading volume ^[1]. The asset stood about 1% below its seven-day high of $97,705 and 2% above its seven-day low of $95,318 ^[1]. With a circulating supply of 19.98 million BTC, Bitcoin's total market capitalization reached approximately $1.94 trillion, also up 2% on the day ^[1].

Macro Factors Supporting the Rally

Broader economic conditions contributed to the positive sentiment. A softer-than-expected U.S. Consumer Price Index reading released on January 13 eased concerns about further aggressive monetary tightening, lifting risk-on sentiment across markets ^[1]. Simultaneously, escalating geopolitical tensions and political uncertainty in the U.S. have increased interest in alternative stores of value ^[1].

ETF flows have emerged as a critical indicator of institutional sentiment since spot products launched in early 2024 ^[1]. While cumulative inflows had reached more than $56 billion by mid-January, flows turned negative in late December amid typical year-end caution before this week's sharp reversal ^[1].

Institutional Outlook for 2026

Looking ahead, JPMorgan analysts project accelerating capital flows into the crypto market for 2026, following a record year in 2025 when inflows approached $130 billion ^[2]. Unlike the previous year, which was primarily driven by retail interest in spot ETFs and aggressive accumulation by Digital Asset Treasuries like MicroStrategy, institutional investors are expected to become the primary drivers ^[2].

A key catalyst for this shift is the anticipated passage of regulatory frameworks in the United States, specifically the Clarity Act, which could remove uncertainties that have previously deterred traditional financial actors and pave the way for mergers, acquisitions, and initial public offerings in the sector ^[2].

Analysis of 2025 capital flows revealed strong concentration, with massive inflows almost exclusively directed toward Bitcoin and Ether, as well as selected large-cap cryptocurrencies ^[2]. Over half of total inflows, approximately $68 billion, came from Digital Asset Treasuries, with MicroStrategy alone accounting for about $23 billion ^[2].

However, JPMorgan experts cautioned that this buying momentum has cooled notably since October, as capital increasingly seeks short-term liquidity in treasury strategies rather than flowing into long-term venture investments ^[2].

Market Volatility Risks Remain

Despite the positive momentum, volatility risks persist. Markets are closely monitoring a potential U.S. Supreme Court ruling on tariffs, which could inject fresh uncertainty into global trade and financial markets ^[1].