Bitcoin (BTC) has risen to $95,000 U.S. as spot exchange-traded funds (ETFs) that track the price of the largest cryptocurrency recorded their largest daily inflows since last October.
Analysts have been quick to say that Bitcoin’s price has moved up from $90,000 U.S. as expectations for interest rate cuts this year rise following benign inflation data in America.
Institutional investors also appear to be rotating back into risk assets following year-end portfolio rebalancing, say some crypto analysts.
Market data shows that about a dozen spot Bitcoin ETFs recorded a cumulative $753.7 million U.S. in net inflows on Jan. 13, the strongest single-day total since Oct. 7 of last year.
The pick-up in flows suggests that institutional investors are re-entering the market after a cautious end to 2025, when tax-related selling and risk-off positioning weighed on crypto.
Spot Ethereum (ETH) funds have also seen a rise in demand in recent days. Ethereum ETFs saw a combined $130 million U.S. of net inflows on Jan. 13, mirroring the recovery in crypto.
The latest inflation report in America showed price increases stagnating, reinforcing expectations that the U.S. Federal Reserve will further cut interest rates this year.
Lower interest rates are typically bullish for risk assets such as cryptocurrencies.
Bitcoin has now gained about 3% over the last 24 hours, while Ethereum has risen about 6%. However, recent crypto rallies have ended up sputtering, warn some analysts.
