Bitcoin Surges in January Amid ETF Inflows Indicating Demand Shift
Bitcoin Price Surges Amid Strong ETF Inflows
Bitcoin's price has soared above $97,000 this week, buoyed by a notable influx of capital into US spot Bitcoin exchange-traded funds (ETFs). Analysts and market observers suggest this reflects a structural demand shift after months of stagnant trading.
According to Bloomberg ETF analyst Eric Balchunas, US spot Bitcoin ETFs have collectively attracted nearly $1.5 billion in net inflows since the beginning of the year. This marks a period of sustained creation activity and renewed interest from major investors, following a phase of subdued ETF flows towards the end of 2025.
Balchunas highlighted on X that the ETF demand pattern "suggests that maybe the buyers have exhausted the sellers," referencing Bitcoin's breakout from prolonged consolidation around the $88,000 level.
Institutional Investors and Bitcoin's Future
The rally comes as Bitcoin enters a period that is traditionally more challenging for the asset. Observers often cite Bitcoin's four-year cycles, which align with halving events and typically see price peaks 12 to 18 months post-halving. This historical pattern suggests the market may already have surpassed its cyclical high.
Despite the cyclical patterns, Bitcoin's recent rebound follows a mixed 2025 performance, where it reached new all-time highs but lacked momentum in the broader crypto market. This left many investors without the anticipated "altcoin season."
Market maker Wintermute suggests that a structural change in Bitcoin markets may be necessary for a broader recovery in 2026. They propose that continued accumulation by ETFs and digital asset treasury companies, or expanded mandates beyond Bitcoin to other digital assets, could drive this recovery.
Wintermute also emphasized the importance of stronger, more consistent performance across major cryptocurrencies, including Bitcoin, to foster a broader wealth effect.
Related: Crypto's 2026 investment playbook: Bitcoin, stablecoin infrastructure, tokenized assets