Bitcoin rallies to near $98,000 amid ETF inflows, CPI surge!

Bitcoin rallies toward $98,000 on stablecoin mints, ETF flows and corporate buying as CPI print and Powell probe unsettle markets

  • Bitcoin rose toward $98,000 on Jan. 14, its highest level since mid-November.
  • Price was up more than 9% from an intramonth low near $89,500 on Jan. 8.
  • Analysts cited stablecoin issuance, ETF flows, derivatives signals and corporate buying as drivers.
  • The U.S. Consumer Price Index climbed 2.7% year-over-year, a factor cited by some investors.
  • Concerns about central bank independence surfaced after a probe into Jerome Powell, prompting an international statement of support.

Bitcoin climbed on Wednesday, Jan. 14, trading near $98,000 as several market forces pushed the price higher. The move marked the largest level since about mid-November and followed earlier January weakness.

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According to Coinbase data from TradingView, the price was over 9% above the intramonth low of roughly $89,500 reached on Jan. 8. Market observers linked the rally to fresh buying and positioning shifts.

Mike Marshall, head of research at Amberdata, said, “I think there are three factors: $2.1B in stablecoin mints last week now deploying, ETF outflows showing exhaustion, and derivatives signaling accumulation with funding rates strengthening into weakness.” He added, “Long/short ratios expanded,” and “Liquidations minimal. I think the setup is constructive but Q1 brings portfolio rotations and macro uncertainty.”

Brian Huang, cofounder of Glider, cited additional drivers, writing that “ETF inflows, today’s CPI print, and MicroStrategy disclosing more BTC buying are the causes for today’s rally in BTC.”

Vincent Liu, CIO of Kronos Research, noted, “Bitcoin’s move toward $98,000 was driven primarily by spot-led demand, while positioning dynamics amplified the upside.” He added, “As price reclaimed key resistance, overleveraged shorts were flushed, forcing covering into a relatively thin order book, while longs remained elevated but controlled.”

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Some technical terms: a stablecoin mint is the creation of a USD-pegged token used for buying crypto; funding rates are small fees in derivatives meant to balance long and short positions; liquidation is a forced closure of leveraged trades; a short is a bet that price will fall; an order book is the list of active buy and sell orders.

The U.S. Bureau of Labor Statistics reported the Consumer Price Index climbed 2.7% over the prior 12 months. A recent poll reported by CNBC found many families feel cost pressures, a point some crypto advocates cite when buying bitcoin.

Separately, reporting by CNBC said federal prosecutors have started a probe involving Federal Reserve Chair Jerome Powell, prompting global central bankers to issue a joint statement. The signees wrote, “We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” and “The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve. It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability,” as published by the voiced statement.

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