Bitcoin’s price surged past $97,000 this week, buoyed by a remarkable influx of nearly $1.5 billion into US spot Bitcoin ETFs since the year’s outset. This uptrend follows a lengthy period of stagnation that left many investors anxiously awaiting a directional breakout.
The recent climb can be attributed to strong demand from institutional players, with Wednesday alone witnessing an impressive $843.6 million flowing into Bitcoin ETFs. This has propelled the weekly total to a substantial $1.07 billion, signaling renewed interest from larger investors who had retreated from the market at the close of 2024.
Market analysts, including Bloomberg ETF analyst Eric Balchunas, observe that this influx indicates a potential shift in market dynamics, where buyers appear to be exhausting sellers. Balchunas noted, “It ‘feels’ like maybe the buyers have exhausted the sellers, we’ll see though. I do know that if it hits $100k some…”
Support for this bullish trend was reflected in Bitcoin spot ETFs, which recorded a total net inflow of $100 million on January 15, marking four consecutive days of positive movement. Ethereum spot ETFs also enjoyed robust demand, garnering $164 million in net inflows on the same day, further demonstrating the increasing institutional appetite.
Despite the optimistic momentum, the broader cryptocurrency market has struggled to keep pace. Throughout 2024, Bitcoin reached new all-time highs but failed to maintain its upward trajectory, leaving many altcoin investors feeling disheartened. Market maker Wintermute emphasized that ongoing accumulation by ETFs and digital asset treasury companies is crucial in firmly supporting prices as we head deeper into 2026.
Regulatory Landscape in Flux
Adding to the market’s complexity, the US Senate Banking Committee recently postponed discussions regarding a proposed crypto regulatory bill. This delay came swiftly after significant opposition was voiced by Coinbase CEO Brian Armstrong, who raised concerns about various aspects of the bill, including a proposed ban on tokenized equities.
Senator Tim Scott confirmed the postponement via social media, noting that the discussion scheduled for Thursday would be pushed back. Armstrong, who criticized specific aspects of the legislative proposal, emphasized that Coinbase would prefer no bill over a flawed one.
The pressing need for clarity in regulations regarding how tokens should be classified—whether as securities or commodities—continues to be a vital issue for the industry.
Current Price Dynamics
As of Thursday morning, Bitcoin was trading at approximately $95,579, slightly down by 0.9% yet retaining proximity to its highest value in two months. Investors remain keenly focused on the critical $100,000 threshold that many believe could redefine market sentiment.
It’s worth noting that Bitcoin has been trading at a discount on platforms like Coinbase compared to global averages since mid-December, indicating that retail demand in the US market remains somewhat tepid, even as institutional flows into ETFs continue to rise.
The recent price movements and heightened institutional activity underscore a potentially transformative moment for Bitcoin, and the coming weeks will be pivotal in determining whether this surge marks the onset of a more prolonged bullish trend.
