Bitcoin started to gain bullish momentum right after the US inflation data was released, triggering ETF inflows and short liquidations.
The crypto market and investment products showed positivity toward the Jan. 13 US inflation report. The US Consumer Price Index for December 2025 recorded a 2.7% year-over-year increase, as expected and similar to the November rate, CNBC reported. However, the seasonally adjusted inflation rose by 0.3%.
Moreover, the CPI can influence what the Federal Reserve does next, including rates, cuts, or holding steady, for example. At this point, the inflation isn’t showing any signs of heating up again, but it’s still concerning, as it’s still above the 2% Fed target.
“Great (LOW!) Inflation numbers for the USA. That means that Jerome ‘Too Late’ Powell should cut interest rates, MEANINGFULLY!!!,” US President Donald Trump posted on Truth Social.
The cryptocurrency market recorded notable gains following the CPI data.
Bitcoin BTC $66 523 24h volatility: 1.2% Market cap: $1.33 T Vol. 24h: $44.30 B rose above $96,000 for the first time in two months. The leading asset is still trading above $95,000.
The leading altcoin, Ethereum ETH $1 953 24h volatility: 1.1% Market cap: $235.56 B Vol. 24h: $22.00 B , is also trading at a two-month high of $3,340 at the reporting time.
Bears Have Been Liquidated
The sudden market-wide spike caught many traders by surprise.
According to data from CoinGlass, the total crypto liquidations increased by 211% in the past 24 hours, reaching $688 million: $93 million longs and $595 million shorts.
Short liquidations have historically proven to add to the bullish momentum of the market. On the other hand, a sudden increase in liquidations can also bring higher volatility, especially for risky assets, such as small-cap altcoins and meme coins.
Bitcoin is leading the chart with $294.7 million in daily liquidations: $28 million longs and $266.7 million shorts.
In total, 126,235 traders have been liquidated over the past day, and the largest wiped-out position is worth $12.9 million in the ETH/USDT pair on Binance, the largest crypto exchange by trading volume.
With the rising sentiment, spot BTC exchange-traded funds in the US recorded a net inflow of $753.8 million, led by Fidelity’s $351.4 million inflow, according to data from Farside. This marks the highest net inflow for the BTC-based investment products since Oct. 7, 2025.
Spot ETH ETFs also registered a $130 million net inflow, led by BlackRock’s $53.3 million buying spree.
The next major catalysts for the crypto market will likely be the US Fed rate decision and the outcome of the Iran-US tensions.
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