BTC Markets head of finance Charlie Sherry says bitcoin’s 4%–5% intraday bounce points to improving macro conditions, renewed institutional inflows and constructive regulatory signals.
The move briefly lifted the cryptocurrency above US$96,000 before it eased to about US$95,500, breaking out of a US$92,000–US$94,000 trading range.
“The rally extends from the strong start to 2026 for digital assets, supported by macroeconomic developments, institutional flows and regulatory signals,” Sherry said.
The price action followed December CPI data showing 2.7% headline inflation and 2.6% core, slightly below expectations, which Sherry said has strengthened market expectations for the US Federal Reserve to cut rates by mid-2026 and lower policy rates toward 3.0%–3.9%.
“Lower rates increase system liquidity and support risk assets,” he said.
Sherry also pointed to a short squeeze during the rally, with more than US$678 million in liquidations.
Institutional demand was supported by spot bitcoin ETFs, which recorded roughly US$117 million in net inflows on January 12, reversing earlier outflows.
Sherry said a sustained close above US$96,000–US$97,000 could open the way for a move toward US$100,000.