Bitcoin Gains Early Momentum as ETF Demand Reignites Optimism

The new year has started with fresh confidence in the digital asset market. Bitcoin (BTC) is leading the rally, with many analysts again predicting a move back to the $100,000 level.

Bitcoin climbed above $94,000 smoothly, showing strong momentum as the wider crypto market also turned positive. This price rise comes as investor interest grows quickly, driven in large part by strong inflows into spot Bitcoin exchange-traded funds (ETFs).

Record Bitcoin ETF Inflows Signal Renewed Confidence

Spot Bitcoin ETFs recorded their largest single-day inflow since the crypto market crash in October. Data from SoSoValue shows that these ETFs attracted $697.25 million in net inflows on January 5 alone. 

When combined with the $471.14 million added last Friday, total inflows for the first two trading days of the month reached more than $1.16 billion.

BlackRock’s iShares Bitcoin Trust (IBIT) led the inflows, bringing in $372.47 million. Fidelity’s FBTC followed with $191.2 million. Bitwise’s BITB recorded $38.5 million, while ARK Invest’s ARKB attracted $36 million. Several other Bitcoin ETF products also posted positive inflows, reflecting broad-based demand. 

Market observers note that this synchronized buying appears linked to portfolio rebalancing. The top coin has remained above the $90,000 level during trading hours. 

This has encouraged institutional investors to adjust their positions rather than exit the market. This behavior supports the view that current demand is structured and long-term in nature.

BlackRock Transfers and Short-Term Volatility

The renewed ETF demand follows recent on-chain activity by BlackRock that briefly increased market volatility. One week earlier, the asset manager transferred 1,134 BTC, worth about $101 million, to the Coinbase exchange. 

According to Arkham data, this move likely related to ETF outflows recorded on December 31. The transfer happened soon after the expiration of crypto options worth $2.2 billion. Such periods often trigger higher market activity and price swings.

Since then, sentiment has improved as prices turned bullish once again. As optimism returns, several experts believe Bitcoin’s move toward $100,000 may be back on track. 

In a recent interview, Crypto analyst Michael van de Poppe noted that the scale of current ETF inflows reduces the likelihood of a strong price pullback. Options market data supports this view. More traders are choosing the $100,000 call option, showing strong expectations of further price gains.

Altcoin ETFs Also Attract Capital

The positive momentum is not only in Bitcoin. Solana-based ETF products recorded $16.8 million in net inflows on Monday after weeks of heavy withdrawals. This pushed total inflows above $1.09 billion, with the Bitwise Solana Staking ETF leading at $12.47 million.

With strong ETF inflows, better market mood, and growing optimism in the options market, Bitcoin has started the year on a solid note. 

These factors point to renewed confidence among investors and expectations of further price gains. While market volatility is inevitable, current data suggests that institutional investors are once again strongly influencing price movements.