Bitcoin shattered the $97,000 ceiling on Wednesday, marking a fresh two-month high and decisively decoupling from traditional equities. While the S&P 500 and Nasdaq stumbled on hotter-than-expected inflation data, crypto markets absorbed a massive liquidity injection led by institutional spot buyers.
The Institutional Receipt: $754M Inflows
The rally was underwritten by the strongest single day of spot ETF inflows since October 7, 2025. According to data from Farside Investors, U.S. Spot Bitcoin ETFs netted a combined $753.7 million on Tuesday.
Fidelity’s FBTC led the charge, commanding $351 million in inflows, significantly outpacing BlackRock’s IBIT ($126 million) and Bitwise’s BITB ($159 million). This rotation suggests a broadening of institutional appetite beyond the dominant BlackRock narrative, with capital aggressively front-running the break above the $93,500 consolidation zone.
Signal: The Macro Decoupling
The divergent price action signals a shift in market correlation. The Bureau of Labor Statistics reported November PPI inflation at 3.0%, exceeding the 2.7% forecast. Historically, this data would drag risk assets lower, and it did, for stocks.
Bitcoin, however, ignored the print. Market makers appear to have already priced in a Federal Reserve rate pause for late January, treating the inflation data as a lagging indicator rather than a new headwind.
The Fed will PAUSE rate cuts in 2 weeks… PPI inflation is now up to its highest level since July 2025. The Kobeissi Letter
Price Action & Outlook
Bitcoin (BTC) traded as high as $97,005 on Binance, up 4.8% on the day. The move liquidated over $700 million in short positions, creating a classic short squeeze that accelerated the push through resistance. With the $97k level reclaimed, the order book thins out toward the psychological $100,000 barrier, a level traders are eyeing before the upcoming Supreme Court ruling on trade tariffs.
