Bitcoin Breaks $95K as $750M ETF Inflows Trigger $200M Squeeze

Bitcoin (BTC) obliterated the $95,000 resistance level Thursday, extending its 2026 breakout as a collision of record spot ETF demand and cooler inflation data caught bears offside. The violent move forced a $200 million liquidation event across the market, the largest short squeeze since the October 10 washout.

The Liquidity Vacuum

Price discovery shifted instantly from derivatives casinos to regulated spot desks. Data from SoSoValue confirms U.S. spot Bitcoin ETFs absorbed a staggering $753.7 million in net inflows on Jan. 13 alone. The highest single-day print in three months. Fidelity’s FBTC led the charge with $351 million, followed by Bitwise ($159M) and BlackRock ($126M).

The impact was mechanical. As issuers scrambled to source coins to back new shares, order book liquidity evaporated. Short sellers, positioned for a technical correction at $94,000, were forced to cover into a rising market. Glassnode data shows $71 million in BTC shorts were vaporized in hours, with another $43 million erased in Ethereum positions.

The move didn’t require 2021-style retail mania. It was a silent, solvent squeeze driven by institutional rebalancing.

Macro Tailwinds Align

The breakout coincided with a “Goldilocks” CPI print, which came in slightly cooler than forecasted. The data eased fears of a hawkish Federal Reserve, repricing the odds of a rate cut later this year. The macro signal gave risk desks the green light to deploy capital that had been sidelined during the holiday lull.

Market structure has visibly shifted. Unlike the leverage-fueled rallies of the past, this move is anchored by spot buying. Open interest is rising, but it trails spot volume, a divergence that typically signals sustainable accumulation rather than a fragile perp-driven bubble.

Outlook: The Six-Figure Question

Bitcoin is now trading in the mid-$96,000s, with no significant technical resistance remaining before the psychological $100,000 barrier. However, on-chain metrics suggest caution. The RSI is pushing into overbought territory, and the sheer velocity of the move ($4,000 in 48 hours) often invites a flush of late longs.

Traders are now watching ETF flows for Friday. If the buying pace sustains above $500 million, the path to $100,000 becomes a matter of arithmetic, not sentiment.