Bitcoin pierced the $94,000 mark Tuesday, adding over $26 billion in market value as traders welcomed a Bureau of Labor Statistics report showing inflation remains within the Federal Reserve’s tolerance zone. The rally ends a four-day slide for the asset, catalyzed by a timely $116 million reversal in U.S. spot ETF flows.
The Goldilocks Print
The December CPI data landed exactly where the market needed it: boring. Headline inflation rose 2.7% year-over-year, matching economists’ forecasts, while Core CPI, stripping out volatile food and energy, cooled slightly to 2.6%. The absence of an upside surprise effectively greenlights the Fed to maintain its rate-cut trajectory for 2026, a liquidity setup that historically benefits risk-on assets like crypto.
The steady inflation figures have reinforced market expectations that the Federal Reserve may consider interest rate cuts later in 2026.
ETF Flows: The Fidelity Flip
Institutional capital is rotating back in, but the composition has shifted. Monday saw U.S. spot Bitcoin ETFs net $116.8 million in fresh inflows, snapping a four-day outflow streak. Notably, Fidelity’s FBTC led the charge with $111.7 million in inflows, effectively neutralizing a $70.4 million outflow from BlackRock’s IBIT. This divergence suggests a changing of the guard in short-term institutional appetite, with value buyers stepping in as momentum traders exited.
Price Action
Bitcoin reacted instantly to the print, surging from support near $91,200 to tap $94,000. Volume has returned to the $48 billion range, though bulls must now defend the $92,500 breakout level to prevent a retracement.
