News author: Crypto Emergency
Bitcoin rose above $95,000 on Tuesday — the first time in over 50 days. The increase was driven by two factors: slowing inflation in the U.S. and escalating tensions between Washington and Tehran, which led to a noticeable inflow of capital into cryptocurrencies.
Geopolitics increased demand for defensive assets
Markets reacted sharply after a statement from the U.S. State Department, urging citizens to immediately leave Iran and prepare for possible prolonged communication disruptions. The warning came amid widespread protests in the country and heightened U.S. rhetoric toward Iran, fueling concerns about conflict escalation in the region.
Travel restrictions became an additional catalyst: during periods of geopolitical instability, investors traditionally turn to alternative and defensive assets. In recent years, Bitcoin has increasingly been viewed as a hedge against global risks, particularly in scenarios involving internet outages and increased government control.
Amid the evolving situation, traders actively shifted into Bitcoin and other liquid cryptocurrencies. Throughout the day, BTC rose above $96,000, while Ethereum, Solana, and XRP also showed significant gains.
Declining inflation in the U.S. supported the market
An additional factor strengthening the market was the latest report on the Consumer Price Index (CPI). Inflation in the U.S. remains at a stable pace, without signs of acceleration. This reduces the likelihood of further tightening by the Fed and lowers the risk of a recession caused by rate hikes.
As a result, investors gained more favorable conditions for investing in riskier assets, including cryptocurrencies. The CPI release eased market pressure precisely at the moment when Bitcoin began recovering after weeks of ETF sell-offs.
ETFs stabilized, and signs of a bullish market are intensifying
The beginning of January was marked by a significant outflow from U.S. spot Bitcoin ETFs—over $6 billion. This was driven by profit-taking by participants in the late phase of the October rally. Selling pressure pushed the BTC price down to the ETF cost basis—around $86,000.
However, inflows and outflows have since balanced out, indicating the end of the main phase of sell-offs. Exchange data show: global demand is absorbing ETF supply, while U.S. institutional investors have merely taken a pause. The negative premium on Coinbase reflects caution, but not a mass exodus from the market.
Bitcoin is back on track toward $100,000
After recovering above $93,000 and subsequently breaking through the $95,000 level, it became clear that selling pressure had eased and a fresh wave of demand returned to the market. With inflation remaining stable and geopolitical uncertainty increasing, Bitcoin gains additional support as a macro asset and as a tool for crisis protection.
If ETF inflows resume and tensions in the Middle East persist, the $100,000 level could become the next key target for traders.
