Bitcoin Price Hit $96K as Bitwise CIO Predicts ETF Move

Bitcoin Price rose above $96,000, reaching the highest price point of the year. Bitwise CIO Matt Hougan states that ETF demand may surpass the available supply of Bitcoin.

The price of Bitcoin has rebounded, surpassing the $96,000 threshold and resuming its upward trajectory since January. With its present momentum, Bitwise CIO Matt Hougan anticipates the token will experience a rapid and substantial increase, assuming the BTC ETF maintains its ongoing inflow.

Bitcoin Price Exceeds $96,000 Mark

The token exceeded the $96,000 threshold during the late trading session on Tuesday night. This marks the highest value the coin has reached this year and its strongest performance since November. The token experienced a cumulative increase of 5% over a 24-hour period. BTC reached a daily peak of nearly $96,654 before closing at $95,000.

Recent data indicate that the upward momentum in the Bitcoin price was partially driven by increased institutional participation. SoSoValue data indicated that U.S. spot Bitcoin ETFs experienced net inflows exceeding $750 million within a single trading day.

Fidelity’s FBTC initiated this trend, accumulating over $12 billion in total and exceeding $350 million in daily figures, followed closely by Bitwise’s BITB, which recorded nearly $160 million.

However, this establishes a precedent in which the coin’s value has experienced a significant increase solely due to U.S. demand.

Alongside ETF flows, inflation data from the U.S. economy for December aligned with expectations, with the Consumer Price Index (CPI) remaining at 2.7% compared to the previous year. These figures have alleviated concerns regarding inflation rates linked to adjustments in U.S. tariff policies.

Simultaneously, uncertainty regarding the resolution of upcoming court rulings related to the Trump tariffs has maintained market apprehension about the future direction of Bitcoin's price. The administration, however, has devised a contingency plan in the event of an adverse ruling.

Bitwise CIO Anticipates Sustained Demand for BTC ETFs

Matt Hougan stated that persistent demand within the ETF market could lead to a scarcity of Bitcoin. He examined the market structure of the current Bitcoin price by comparing it with gold.

He proceeded to clarify that, although the BTC ETFs have absorbed volumes exceeding new market supply, this fact has not been accurately reflected in the asset prices. The Bitwise Chief Information Officer, however, holds a different perspective.

“Since ETFs debuted in Jan 2024, they’ve been buying more than 100% of the new supply of bitcoin. But the price hasn’t gone parabolic, because existing holders have been willing to sell. If ETF demand persists, and I think it will eventually, these sellers will run out of ammo.”

Notably, the most recent surge in BTC ETF inflows occurs subsequent to a prior increase observed last week. Conversely, the unforeseen increase in the Bitcoin price surprised many speculators. Over the past 24 hours, the cryptocurrency market experienced approximately $688 million in the highest liquidations of short positions, according to data from CoinGlass.