Bitcoin moved above $96,000 late on Jan. 13, lifting its market capitalization past $1.9 trillion and pushing the total crypto market to $3.33 trillion. The jump came as U.S. President Donald Trump renewed his attacks on Federal Reserve Chair Jerome Powell, adding a political spark to an already strong bid in crypto.
Spot ETF inflows hit their strongest day since launch
The clearest driver came from spot bitcoin ETFs, which posted $753.8 million in net inflows on Jan. 12. Data platform Lookonachain said that was the largest single-day net inflow since the products launched in 2024. Among the biggest funds, Blackrock’s IBIT brought in $126.3 million, while Fidelity’s FBTC led with $351.4 million. Those figures gave the rally a strong institutional base.
By 12:30 a.m. EST, bitcoin was up nearly 5% from its Jan. 12 level of about $90,500, making it one of the week’s strongest performers at that point. The report said institutional demand supported the move, but the initial trigger came from the Trump administration’s subpoena against the Federal Reserve.
Pressure on the Fed added a political catalyst
In a speech in Detroit celebrating 4.3% GDP growth in the third quarter of 2025, Trump criticized Powell and accused him of refusing to cut interest rates in line with economic momentum. Some observers view the administration’s effort to pressure the Fed as a threat to central bank independence. After the renewed attacks and the Justice Department subpoena, the heads of several central banks issued a statement backing Powell and his team.
Short liquidations accelerated as price cleared resistance
The sharp move higher set off heavy liquidations in bearish positions. According to Coinglass, bitcoin’s break above $96,000 led to more than $270 million in bitcoin short liquidations over 24 hours, versus nearly $24 million in long liquidations. Across the broader crypto market, more than $590 million in shorts were wiped out, compared with just under $90 million in long positions.
The report also said bitcoin had moved through the $95,000 resistance level. Analysts cited in the piece said that leaves the market closer to retesting the $100,000 psychological threshold.