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

Bitcoin climbed to nearly an 8-week high, breaking above $97,300, fueling a broader crypto rally and shifting derivatives positioning to be risk-on. This breakout triggered significant forced deleveraging, with over $680 million in short positions liquidated as traders betting against Bitcoin were caught offside. Speculative sentiment is also high, with Polymarket odds suggesting a greater than 60% chance Bitcoin hits $100,000 before the end of January. The advance is believed to be reinforced by institutional flows, specifically large U.S. spot bitcoin ETF inflows totaling about $750 million on Tuesday, which absorb supply gradually. Analysts suggest this allocation-led demand, rather than leverage, keeps volatility contained early in the rally. The rally is occurring against a supportive macro backdrop described as "Goldilocks," characterized by resilient U.S. labor data and stable inflation, which has boosted risk appetite across assets.

(Source：The Block)