BTC Heads Toward $100,000: Bitcoin Surpasses $97,000 Amid Record ETF Inflows and Regulatory Hopes

BTC is trading above $97,000, showing a growth of more than 3% in the last 24 hours. This is the highest level in the past two months, and analysts predict further upside based on strong fundamental factors.

Yesterday, January 14, inflows into spot BTC-ETFs reached an impressive $750 million, underscoring growing institutional investor interest. Funds like BlackRock and Fidelity continue to attract capital, contributing to the overall market rally. The overall trend of ETF inflows remains positive, with accumulated assets under management exceeding analysts' expectations. This confirms that institutional demand is becoming a key driver of BTC's growth.

But why has Bitcoin surged so sharply? In addition to ETF inflows, there are several other reasons based on recent events:

1. Optimism around potential legislative pushes for the crypto market. U.S. Senators have introduced the Digital Asset Market Clarity Act, which would create a clear regulatory framework for the industry, including regulator jurisdictions. This is a long-awaited step that could attract more capital and stabilize the market. Analysts note that such clarity could be a catalyst for BTC outperforming traditional assets.
2. Despite higher-than-expected U.S. PPI inflation data (3% versus the forecasted 2.7%), Bitcoin is ignoring the negativity and decoupling from the falling stock market. Inflation remains relatively stable, reducing concerns about aggressive Federal Reserve monetary tightening. A pause in rate cuts is expected at the January meeting, but BTC is positioning itself as an alternative for hedging against geopolitical and economic risks, including uncertainty around Fed independence and potential tariffs.
3. Major players like MicroStrategy continue to accumulate BTC, announcing new acquisitions. This boosts market confidence and supports growth. Additionally, the overall macro environment, including dollar weakening due to inflation data, is favorable for cryptocurrencies.

Experts like Matt Hougan from Bitwise believe that if the market avoids new flash crashes and regulatory initiatives pass, BTC's price could "grow substantially." Overall, the rally has potential for continuation, especially if the stock market stabilizes.

However, investors should remember the volatility: the crypto market remains susceptible to sudden corrections. Keep an eye on regulatory updates and macro data to react timely to changes.