The Rise of Bitcoin: Optimism is Growing in the Crypto Market

Rapid Rally in Bitcoin

Bitcoin reached a level of $96,348 with an increase of approximately %2.4 in early trading in Singapore. This is the highest daily value recorded since November 16. The second largest cryptocurrency, Ether, also gained %5.1 in value. This increase has led to the elimination of more than $500 million in bearish expectations for cryptocurrencies.

Medium-Term Potential and Investor Interest

Bitcoin has experienced a loss of over %6 for the year 2025, but it signaled a solid breakout throughout January. Investors anticipate that Bitcoin could potentially gain value against competing asset classes.

Justin d'Anethan, head of research at Arctic Digital, stated, "In the medium term, I expect investors to turn more towards Bitcoin as gold prices rise. Other risky assets are also gaining." He also noted that data released on Tuesday showing U.S. core inflation rose less than expected has had positive repercussions for Bitcoin.

Short Position Squeeze in Derivative Markets

According to Vincent Liu, chief investment officer at Kronos Research, sharp short position squeezes in Bitcoin derivative markets have also driven the price upwards. According to CoinGlass data, approximately $290 million worth of Bitcoin short positions were liquidated in the last 24 hours. Overall, about $600 million worth of short positions across all cryptocurrencies have been wiped out.

Investor Transfers and Market Trends

On Tuesday, investors transferred $754 million to 12 Bitcoin exchange-traded funds trading in U.S. markets, reaching the highest amount in recent days. This indicates a strong confidence in the market's upward trend.

Tony Sycamore, an analyst at IG Australia, noted that a permanent breakout above $95,000 would pave the way for a rise towards the $100,000 level and potentially the 200-day moving average.

Joshua Lim, co-head of global markets at FalconX, expressed that the current macro environment continues to be favorable for Bitcoin. He emphasized that tensions in Venezuela, unrest in Iran, and the decision by MSCI to hold off on plans to remove crypto-weighted companies from major indices would have positive effects on Bitcoin.