Bitcoin Price Rallies in January as ETF inflows signal demand shift

Bitcoin's price climbed above $97,000 this week, supported by a sustained return of capital into US spot Bitcoin exchange-traded funds (ETFs), which have seen nearly $1.5 billion in net inflows since the start of the year. Market analyst Eric Balchunas suggested this renewed demand indicates that buyers may have exhausted sellers, allowing Bitcoin to break out of its consolidation around $88,000. While single-day inflows are notable, the broader trend points to steadier demand returning after earlier rotation within these products. This rally occurs during a historically challenging period for the asset based on four-year halving cycles. Market maker Wintermute noted that a broader market rebound heading into 2026 will likely depend on continued accumulation by ETFs and digital asset treasury companies, or an expansion of their mandates beyond Bitcoin, as retail inflows were weak in the previous year.

(Source：Cointelegraph)