Bitcoin hits 8-week high above $97,000 as shorts unwind and $100K odds rise

Bitcoin climbed to its highest level in nearly two months on Wednesday after breaking $97,300, extending a broad crypto rally that has flipped derivatives positioning sharply risk-on.

The largest cryptocurrency is now trading comfortably above $97,000, according to The Block’s price page, having risen more than 4.4% over the past 24 hours. Major tokens, including ether, solana, and BNB, also moved higher, signaling widening participation as the total crypto market capitalization surged to about $3.4 trillion after weeks of range-bound trading.

The breakout has triggered heavy forced deleveraging. More than $680 million in short positions were liquidated over the past day, CoinGlass data shows, as traders betting against bitcoin were caught offside by the move.

Speculative sentiment has also shifted, mirroring price action. On Polymarket, bettors now assign greater than 60% odds that bitcoin hits $100,000 before the end of January, up sharply as spot prices reclaimed levels that had capped rallies since November.

Institutional crypto cushion

Institutional flows have likely reinforced the advance, as expert commentary suggests the move has been driven more by allocation than leverage. Crypto startup Nexo said large ETF inflows tend to absorb supply gradually rather than fuel immediate spikes, often keeping volatility contained early in a rally.

U.S. spot bitcoin ETFs recorded roughly $750 million in net inflows on Tuesday, their largest single-day intake in nearly three months, The Block previously reported, pointing to renewed allocation following year-end rebalancing.

“Historically, flows of this scale tend to influence market structure gradually by absorbing supply rather than driving immediate upside,” Nexo Dispatch analyst Iliya Kalchev said. “When advances are led by allocation demand rather than leverage, volatility often remains contained before expanding later.”

‘Goldilocks’ macro zone

More broadly, the rally has unfolded against a supportive macro backdrop. Analysts at QCP Capital described the environment as “Goldilocks,” citing resilient U.S. labor data and stable inflation as risk appetite returned across equities, precious metals, and crypto.

Geopolitical risks have so far failed to derail markets. Despite tensions involving Venezuela and Iran, price action has remained constructive, while oil absorbed a geopolitical premium without triggering broader risk aversion, QCP said on Jan. 14.

Also on Wednesday, the U.S. Supreme Court declined to issue a closely watched ruling on the legality of President Donald Trump’s tariffs, removing a near-term source of uncertainty for markets.