Bitcoin Rallies to Two-Month High Near $96,000 on Macro Boost
After spending much of the past eight weeks trading between $88,000 and $93,000, Bitcoin finally broke above a key resistance zone. The move triggered a wave of momentum buying, pushing prices to levels last seen in mid-November. As of early U.S. trading hours, Bitcoin was holding above $95,500, up roughly 7% over the past 14 days and more than 120% year-over-year, according to aggregated market data.
Macroeconomic Tailwinds Fueling Bitcoin’s Rise
The latest Bitcoin price surge comes as macro signals align in crypto’s favor. Recent U.S. economic data shows inflation continuing to cool, with consumer price growth trending closer to the Federal Reserve’s long-term target. As a result, markets are increasingly pricing in rate cuts later this year, a scenario that historically benefits assets like Bitcoin.
Lower interest rate expectations reduce the opportunity cost of holding non-yielding assets, making Bitcoin more attractive compared to bonds or cash. At the same time, the U.S. dollar index has softened slightly over the past month, another supportive factor for Bitcoin and other hard-capped assets.
Institutional Demand and ETF Flows Strengthen the Rally
Institutional participation remains a major driver behind Bitcoin’s latest move. Spot Bitcoin ETFs continue to see steady inflows, with combined net inflows averaging hundreds of millions of dollars per week in recent sessions. Analysts estimate that ETFs now collectively hold well over 1 million BTC, representing a meaningful share of circulating supply.
This sustained demand has tightened available liquidity. On-chain data shows the number of Bitcoin held on centralized exchanges has dropped to multi-year lows, with less than 12% of total supply currently sitting on trading platforms. Historically, declining exchange balances often precede periods of higher prices, as reduced supply amplifies upward pressure during demand spikes.
Technical Breakout and Derivatives Data
From a technical standpoint, Bitcoin’s push above $95,000 marked a decisive breakout from a prolonged consolidation range. Trading volume jumped more than 30% above the 30-day average, confirming strong participation behind the move.
In derivatives markets, open interest in Bitcoin futures climbed to new monthly highs, while funding rates remained relatively neutral. This suggests the rally is not overly driven by excessive leverage, reducing the immediate risk of a sharp liquidation cascade. Still, short liquidations played a role, with estimates showing over $400 million in short positions wiped out during the breakout above $94,000.
Key Levels to Watch Going Forward
Analysts are closely watching the $100,000 psychological level, which represents both a major psychological barrier and a zone with heavy options activity. Data shows a significant concentration of call and put options around the $100K strike, meaning price action could become more volatile as Bitcoin approaches that level.
On the downside, the $92,000–$93,000 range now acts as near-term support. A sustained move below that zone could signal short-term exhaustion, while holding above it would keep the bullish structure intact.
What This Means for the Broader Crypto Market
Bitcoin’s strength is spilling over into the wider cryptomarket. Total crypto market capitalization has climbed back above $1.9 trillion, and Bitcoin dominance remains near 52%, suggesting BTC is leading the market higher. Historically, strong Bitcoin rallies often set the stage for broader participation across digital assets.
