Bitcoin (BTC) Price: Climbs Toward $93K as Geopolitical Tensions Rise and ETF Inflows Surge

TLDR

• Bitcoin rose toward $93,000 on Monday as President Trump suggested possible military action against Colombia and Mexico
• The crypto market saw $260 million in liquidations within 24 hours, with $200 million from short positions
• Bitcoin ETFs recorded $645.8 million in inflows on January 2, signaling renewed institutional interest
• Bitcoin broke out from a month-long triangle pattern above $89,500, with technical indicators pointing to further gains
• XRP gained 3% while Dogecoin led majors with a 17% weekly increase

Bitcoin moved higher on Monday, reaching toward the $93,000 level as markets responded to geopolitical developments in Latin America and strong institutional demand through exchange-traded funds.

The price rally came as President Donald Trump made statements about potential US action against Colombia and Mexico. Trump criticized Colombia’s president over cocaine trafficking and responded positively when asked about military operations in the country.

The president also warned that “something is going to have to be done” in Mexico after President Claudia Sheinbaum declined to provide help tackling drug cartels. These comments followed a weekend operation in Venezuela where the US took President Nicolás Maduro into custody.

Bitcoin traded up about 1% over 24 hours and roughly 3% over seven days. Ether held near $3,160, also posting gains for the day.

Derivatives Market Shows Strong Bullish Pressure

The derivatives market amplified Bitcoin’s upward move. Liquidations crossed $260 million over 24 hours, with short positions accounting for about $200 million of that total.

More than $121 million in short positions were liquidated in just four hours, compared with less than $9 million in long positions. The lopsided liquidations showed bearish traders were forced to cover positions as prices climbed.

On Hyperliquid, a decentralized perpetual trading platform, shorts represented roughly 54.4% of all liquidated positions versus 45.6% longs. The data pointed to crowded bearish positioning that proved vulnerable to the price surge.

Strong ETF Inflows Drive Institutional Interest

Bitcoin ETFs recorded $645.8 million in inflows on January 2, reigniting optimism in the digital asset market. The total crypto market cap reached $3.12 trillion with daily trading volume near $75 billion.

The Fear and Greed Index stood at 40, marked as neutral territory. This represented a sharp improvement from December’s fear levels. The Altcoin Season Index registered 25, confirming the market remains in a Bitcoin-dominant phase.

Jeff Mei, chief operating officer at BTSE, said traders are jumping in to exploit price differences. He noted cryptocurrencies remain well below their all-time highs while equities and precious metals keep printing new records.

Bitcoin confirmed a breakout from a triangle pattern after a month-long consolidation period. The move above $89,500 marked an end to December’s sideways trading and suggested the start of a new upward phase.

Technical indicators on the 4-hour chart showed Bitcoin forming higher lows with steadily rising volume. A 50-EMA crossover above the 100-EMA confirmed strengthening momentum. The RSI near 69 suggested controlled bullish pressure without entering overbought territory.

The breakout came with a bullish engulfing candle that broke resistance, followed by a spinning top at $92,000. Analysts identified the next resistance levels between $93,500 and $94,600, with a potential move toward $98,000 in the coming weeks.

Other major cryptocurrencies also posted gains. XRP added around 3% to trade above $2.10. Solana hovered near $136. Dogecoin eased slightly on the day but remained up 17% over the past week, marking the highest gains among major tokens.

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