Bitcoin ETF Inflows Hit $1.2B as BTC Tests $93K Breakout

Timothy Morano
Jan 07, 2026 04:31

Bitcoin trades at $92,782 after massive institutional demand drives largest ETF inflows in three months, setting stage for potential rally toward $100,000.

Institutional appetite for Bitcoin has returned with a vengeance, driving $1.2 billion into spot ETFs over just two trading days—the largest influx in over three months. The surge has pushed Bitcoin back above $92,000, marking a dramatic reversal from the late-2025 outflows that had many questioning institutional commitment to digital assets.

BlackRock’s IBIT ETF alone captured $372 million in Monday’s session, according to Bloomberg ETF data, while Fidelity’s FBTC attracted $191 million as traditional finance players doubled down on cryptocurrency exposure. The combined $697 million single-day inflow represents the kind of institutional conviction that preceded Bitcoin’s previous major rallies.

Momentum Indicators Flash Green

Technical analysis from Binance spot data reveals Bitcoin trading at $92,782, down 1.16% on the day but holding firmly above key support levels. The MACD histogram shows a bullish reading of 810.54, indicating underlying momentum remains positive despite short-term consolidation.

More telling is Bitcoin’s position within its Bollinger Bands—the cryptocurrency sits at 0.93 on the scale, nearly touching the upper resistance band at $93,413. This positioning mirrors the setup seen in October 2024, just before Bitcoin’s run to its all-time high above $100,000.

The daily RSI reading of 60.39 suggests room for further upside without entering overbought territory, while the 14-day ATR of $2,468 indicates volatility remains elevated—a characteristic of trending markets rather than ranging ones.

Wall Street Weighs In on $100K Target

Market strategists are increasingly vocal about Bitcoin’s path toward six figures. Options traders have positioned aggressively for upside, with open interest for $100,000 call options doubling the next most popular strike, according to derivatives data.

“If they can take in $22 billion when it’s raining, imagine when the sun is shining,” Bloomberg ETF analyst Eric Balchunas noted via social media, referencing the sustained inflow pace that could theoretically reach $150 billion annually.

However, not all analysts share this enthusiasm. Some point to Bitcoin’s failure to reclaim its 200-day moving average at $106,538 as evidence the broader uptrend remains in question. The cryptocurrency would need to break decisively above $94,789—a level that has acted as stubborn resistance—to convince skeptics that the bull market has resumed.

Macro Winds Provide Tailwinds

The renewed interest comes amid speculation about global Bitcoin adoption expanding beyond U.S. borders. Unconfirmed reports suggest Japan may be preparing to launch its own Bitcoin ETF, potentially opening access to the world’s fourth-largest economy’s institutional capital.

Geopolitical developments have also caught traders’ attention. Venezuela’s political upheaval has sparked speculation about the country’s rumored 600,000 Bitcoin holdings potentially entering U.S. control, creating significant supply constraints if held as a strategic reserve asset.

Meanwhile, the Coinbase Premium Index has flipped positive after 22 consecutive days in negative territory, signaling that U.S. dollar-based buying pressure is returning to the market—a key indicator that preceded previous institutional adoption waves.

The Trade Setup: Bulls vs. Bears

For bullish traders, the setup appears compelling. A break above $94,789 resistance could trigger momentum toward the psychological $100,000 level, with intermediate resistance at $97,500. Risk-conscious bulls might enter on a daily close above $94,000 with stops below $90,000—the 50-day moving average that has provided support during recent pullbacks.

Bears, however, should watch for failure to break resistance coupled with any reversal in ETF flows. A drop below $89,200—the 20-day moving average—could signal the rally is losing steam and open the door to a test of $85,110 support.

The risk-reward currently favors bulls, with potential upside to $100,000 offering a roughly 8% gain versus downside to key support around $85,000 representing a similar-sized loss.

Bitcoin’s immediate fate likely hinges on whether institutional demand can sustain current levels. The next 48 hours will prove critical—a continuation of ETF inflows above $300 million daily would suggest the institutional FOMO that drove 2024’s rally may be returning. Failure to maintain momentum, however, could see Bitcoin retreat to the $88,000-$90,000 range where it spent much of late 2025.

The smart money appears to be betting on continuation, but in a market where sentiment can shift as quickly as ETF flows, $94,000 remains the level that separates hope from conviction.

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