Bitcoin breaks above $96,000 as tame inflation data and Iran tensions spur rally

[Ben Graham]

Bitcoin surpassed $96,000 on Tuesday, January 14, 2026, reaching its highest level in more than two months. The cryptocurrency's advance was driven by a combination of favorable macroeconomic data and an escalation in the Middle East. The move triggered large short squeezes estimated at more than $600 million and pushed total crypto market capitalization above $3.3 trillion.

The immediate catalyst was US inflation data published by the Bureau of Labor Statistics on January 13. December's consumer price index showed core inflation rising just 0.2% month?on?month and 2.6% year?on?year, with both readings below the consensus. Those figures reduced fears of further monetary tightening by the Federal Reserve and increased risk appetite across global markets.

Geopolitical developments provided an additional boost. The US State Department reissued a Level 4 warning, urging American citizens to leave Iran immediately amid continuing protests that have reportedly left more than 600 people dead. President Donald Trump said he had halted all negotiations with Iranian officials and posted on Truth Social: "Iranian patriots, KEEP PROTESTING, SEIZE YOUR INSTITUTIONS!"

That mix of controlled inflation and foreign?policy instability reinforced narratives of Bitcoin as a crisis hedge. Bitcoin Magazine reported that BTC peaked at $97,700, a move that led to roughly $700 million in short liquidations.

The risk?on move also fueled the largest single?day inflow into US spot Bitcoin ETFs since October. On January 13, inflows totaled about $754 million. Fidelity's FBTC led with $351 million, followed by Bitwise's BITB with $159 million and BlackRock's IBIT with $126 million. The inflows ended a four?day exodus that had seen more than $1.3 billion leave ETFs between January 6 and 9. Cumulative net inflows into US Bitcoin ETFs now stand at about $56.5 billion.

Analysts are watching the psychologically important $100,000 level. Crypto strategist Michael van de Poppe said that a break above the 21?day moving average and the development of a pattern of higher highs point to the start of a new bull cycle.

He forecasts that Bitcoin could reach six?figure levels within days. Polymarket data shows traders currently assign a 73% probability that BTC will exceed $100,000 in January.

Other major digital assets also rose: Ethereum climbed above $3,300, XRP gained about 5%, and Solana added roughly 4%. Over the past 24 hours, total crypto market capitalization increased by approximately $103 billion.

With bullish sentiment building and a high probability of Bitcoin approaching $100,000, traders may consider long positions in BTC and other large assets such as ETH, SOL, and XRP.

The growing interest in spot ETFs also offers a route for indirect participation through traditional investment vehicles. Market participants should, however, account for heightened volatility and employ risk?management strategies, particularly given the ongoing geopolitical uncertainty.

The material has been provided by InstaForex Company - www.instaforex.com