Bitcoin surpasses $94,000 for the first time in a month: What’s driving today’s crypto surge?

On January 5, Bitcoin (BTC) surpassed $94,000, achieving its highest point since December 10 and culminating a surge that contributed nearly $100 billion to the overall cryptocurrency market capitalization within a single day.

This increase coincided with spot Bitcoin ETFs experiencing their most significant inflows in three months, aggressive bullish positioning in derivatives, and favorable macroeconomic conditions that allowed risk assets to bounce back as the new year began.

On January 2, US spot Bitcoin ETFs recorded $471 million in net inflows, primarily driven by BlackRock’s IBIT, which helped elevate BTC back above $90,000 heading into the weekend, paving the way for today’s breakout.

The demand for the ETFs emerged as institutional flows returned following year-end consolidation, a January effect following substantial outflows that characterized late 2025.

The resurgence of institutional interest combined with sparse post-holiday liquidity enabled inflows to propel prices more decisively than they would typically under standard trading conditions.

Derivatives markets further fueled the rally through a familiar feedback mechanism.

Options traders flocked to upside calls concentrated around the $100,000 strike price, with open interest on Deribit surging and total options open interest for January reaching about $1.45 billion.

Data from CoinGlass indicates that over $438 million in short positions were liquidated in the last 24 hours, prompting additional buying as Bitcoin surpassed resistance levels.

The dynamics of the short squeeze accelerated the movement from the low $90,000s into the $94,000 range, with thin order books amplifying each upward leg.

Moreover, the macroeconomic environment provided support from various angles.

Markets absorbed weaker-than-expected US manufacturing figures, reinforcing forecasts that the Federal Reserve may continue its trajectory towards a more accommodative monetary policy.

Bitcoin daily price chart demonstrating recovery to $94,795 on January 5, 2026, marking the first instance since December 10, 2025.

Macro tailwinds and optimistic options outlook

At the same time, geopolitical risks surged as the US initiated operations targeting Venezuelan President Nicolás Maduro, leading to repositioning across various asset classes.

Technology stocks surged alongside traditional safe-haven assets like gold and silver, with Bitcoin attracting bids as investors rotated into both growth and defensive strategies at the onset of 2026.

The wider cryptocurrency market reflected Bitcoin’s robustness, with total market capitalization increasing by 3.1% to nearly $3.3 trillion.

Ethereum traded at $3,244, up 3.1% in the previous 24 hours, while XRP achieved the most significant gains among major assets with an 11.5% rise to $2.33. Solana increased by 3.7% to $189, Cardano climbed by 5.2% to $0.8218, and Dogecoin rose by 2.6% to $0.1534. BNB ascended by 2.2% to $915.

The influx of ETF investments, whale accumulation, and the forced covering of short positions collectively contributed to the breakout, with relatively low resistance between $90,000 and $94,000 allowing the rally to gain momentum.

Options positioning indicates a bullish sentiment, with call buyers wagering on further upward movement through January expirations. Bitcoin has not settled above $94,000 since mid-December, when a brief spike to similar heights preceded a month-long consolidation phase.

Bitcoin options open interest by strike price on Deribit, illustrating concentrated call activity around $100,000 and put interest in the $75,000-$80,000 range. Image: CoinGlass

The technical landscape reveals Bitcoin reclaiming levels it last held nearly four weeks prior, breaking through the $90,000-$92,000 range that had limited upside attempts throughout late 2025.

Whether Bitcoin can sustain levels above $94,000 and challenge $100,000 hinges on the continuity of ETF demand at the pace observed on January 2 and the persistence of favorable macro conditions.

Weaker manufacturing data bolster the argument for a dovish Fed, yet geopolitical developments introduce uncertainties that could shift sentiment in either direction.

For the time being, the combination of institutional inflows, derivatives positioning, and thin liquidity has propelled Bitcoin back to levels last observed in mid-December.

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