As Bitcoin rips past $97,000, hitting an eight-week high, traders who bet against the cryptocurrency are feeling the pain. A massive $700 million in short positions got liquidated during the surge, with over $360 million wiped out in just 24 hours. Ouch. The largest single order? A cool $34.9 million on HTX exchange. Brutal.
Short sellers got steamrolled as Bitcoin blasted through $97K, crushing $700M in positions. Talk about a crypto massacre.
This price action isn’t random. December’s inflation data came in right on target with CPI rising 2.7% year-over-year, while core CPI showed a softer-than-expected 2.6% increase. Good news for risk assets. The moderation in inflation numbers eased fears about tighter monetary policy, sending Bitcoin on its upward trajectory.
Meanwhile, institutional players keep piling in. Spot Bitcoin ETFs recorded $697 million in net inflows on January 5, just shy of Tuesday’s record $753.73 million. MicroStrategy didn’t waste time either, scooping up 13,627 BTC for $1.25 billion. These guys can’t get enough. The growing institutional participation aligns with Bitcoin’s status as a cornerstone asset in the cryptocurrency market.
Technically, Bitcoin has reclaimed the $94,000-$96,000 range that had been acting as a consolidation zone. It broke above key resistance and is now eyeing the psychological $100,000 barrier. There’s a supply cluster between $93,000 and $110,000 from the April-July 2025 period that could present some friction. Polymarket data suggests there’s a 73% probability Bitcoin will reach the $100K milestone in January.
What’s interesting is the decline in Bitcoin holders – 47,244 fewer over two months. Historically, this has preceded price increases. Exchange supply has also dropped to a seven-month low of 1.18 million BTC. Less supply available to sell? That’s bullish.
Market liquidity tells another story. Futures turnover is below 2025’s elevated levels, and the breakout happened on thin derivatives volume. The market’s bullish sentiment continues to strengthen as Bitcoin displays classic bottom signals while approaching the coveted $100,000 mark. Market depth is down 30% from 2025 highs, with Binance’s 1% depth falling below $400 million. Thinner books mean big money moves markets more easily.
The $97,000 level seems to be the magic number triggering this demand surge – even as dealers fight to maintain some semblance of stability.
