Bitcoin experienced a notable intraday bounce, reflecting improved macroeconomic conditions, renewed institutional investment, and constructive regulatory advancements, according to BTC Markets head of finance Charlie Sherry. BTC Markets is an Australian digital asset exchange providing a platform for investors to buy, sell, and manage their cryptocurrency portfolios. The recent rally propelled the cryptocurrency above $US96,000 before settling around $US95,500, successfully breaking out of its previous trading range of $US92,000 to $US94,000.
Sherry noted that the rally extends the strong performance of digital assets since the start of 2026, driven by supportive macroeconomic developments, renewed institutional flows, and positive regulatory signals. December’s Consumer Price Index (CPI) data, reporting 2.7 per cent headline and 2.6 per cent core inflation, came in slightly below expectations. This bolstered market expectations that the US Federal Reserve would begin cutting rates by mid-2026, potentially lowering policy rates toward 3.0–3.9 per cent.
Lower interest rates typically increase liquidity within the financial system, providing support for risk assets like cryptocurrencies, Sherry explained. In addition to macro factors, the rally triggered a short squeeze, resulting in over $US678 million in liquidations. Institutional demand showed resilience through spot Exchange Traded Funds (ETFs), which recorded approximately $US117 million in net inflows on January 12, reversing earlier outflows.
Sherry added that a sustained close above the $US96,000–$US97,000 range could potentially pave the way for bitcoin to reach $US100,000. Market participants are closely monitoring these levels as indicators of continued upward momentum in the cryptocurrency market.
