Bitcoin Climbs to $96K Joining Broader Crypto Market Rally
Bitcoin reached its highest level in two months on Wednesday, rising as much as 3.68% to $96,348 during early morning hours today. The move marked a clear shift for the largest cryptocurrency, which had spent much of the prior weeks trading in a narrow range while stocks and precious metals continued to advance. After pulling back slightly, Bitcoin still held solid gains as market sentiment remained positive.
Ethereum, the second-largest cryptocurrency by market value, performed even stronger with a gain of as much as 5.1%. The simultaneous advance in both leading digital assets signaled renewed investor interest across the sector after a quiet end to 2025.
Key Drivers Behind the Move
Several developments this week appear to have provided tailwinds for Bitcoin and the wider cryptocurrency market. A report released Tuesday showed underlying U.S. inflation increased less than economists had forecasted, easing pressure on the Federal Reserve to maintain restrictive policy. Lower-than-expected inflation readings often encourage investment in growth-sensitive assets, including cryptocurrencies.
Separate news about the Federal Reserve itself also drew attention when reports emerged that the central bank had received grand jury subpoenas from the Justice Department. While details remain limited, the event serves as a reminder of the benefits of holding assets outside traditional financial systems. Bitcoin, frequently described as digital gold, gained traction among those seeking alternatives to fiat currencies and conventional safe-haven assets.
Precious metals markets added another layer of context. The U.S. Mint announced a suspension of all silver product sales due to extreme price volatility and record-high production costs. Silver and gold have both enjoyed strong runs recently, and the pause in mint sales showcases the intense demand for physical precious metals. Bitcoin could attract additional capital as investors look to capture similar upside in a digital currency.
Institutional activity reinforced the positive momentum. Investors added $754 million to the twelve U.S.-listed spot Bitcoin exchange-traded funds on Tuesday, the largest single-day inflow since early October. That capital commitment reflected growing confidence that the current rally still has room to run. Across the broader cryptocurrency derivatives market, approximately $600 million in short positions were liquidated as prices moved higher, further fueling the upward pressure.
From a technical perspective, analysts note that a sustained close above $95,000 would clear a major resistance level. Such a break could open the path toward $100,000 and eventually the 200-day moving average, currently near $106,115. We're watching these levels closely as Bitcoin attempts to regain ground lost earlier in the year, when it posted a decline of more than 6% for 2025 overall.