Bitcoin (BTC) Price: Spot Buying Pushes BTC Above $95,000 as Analysts Eye $100K

TLDR

• Bitcoin price rallied 4.65% to reach $95,190, with analysts attributing the move to spot buying rather than futures contracts
• Short positions totaling $269.21 million were liquidated as traders betting against Bitcoin were caught off guard
• Prediction markets give Bitcoin 51% odds of hitting $100,000 by February 1st, though it hasn’t reclaimed that level since November 13th
• The Coinbase Premium Index remains negative, showing U.S. investors are selling more than buying compared to global markets
• January typically brings modest 4.18% gains for Bitcoin while February historically delivers stronger 13.12% average returns

Bitcoin climbed above $95,000 on Tuesday as spot buying drove the rally. The cryptocurrency traded at $95,190 at the time of publication, marking a 4.65% gain over the previous 24 hours.

Crypto analyst Will Clemente noted the rally appears driven by spot purchases. This means investors are buying actual Bitcoin rather than futures contracts or options. Spot buying is viewed as more sustainable than derivative-based rallies.

The price move caught short sellers off guard. Data from CoinGlass shows $269.21 million in Bitcoin short positions were liquidated during the rally.

MN Trading Capital’s Michaël van de Poppe believes Bitcoin will reach $100,000 within the coming week. The cryptocurrency last traded above that psychological level on November 13th before falling below it.

Prediction markets on Polymarket currently give Bitcoin 51% odds of reclaiming $100,000 by February 1st. The platform shows a 23% chance of reaching $105,000 during that timeframe.

Historical Patterns Point to February Strength

Bitcoin has historically performed modestly in January. Since 2013, the cryptocurrency has averaged gains of 4.18% during the first month of the year.

February tends to be much stronger for Bitcoin price action. The cryptocurrency has delivered average returns of 13.12% during the second month across the same period.

Crypto sentiment platform Santiment suggests retail investor fear of missing out may increase if Bitcoin approaches $100,000. The platform noted that retail FOMO could start building if the cryptocurrency begins testing six-figure prices in the coming days.

The Crypto Fear & Greed Index posted a score of 26 on Wednesday. This reading falls in the “fear” category. The index has bounced between “fear” and “extreme fear” since early November following a market liquidation event on October 10th.

U.S. Demand Remains Weak Despite Rally

The Coinbase Premium Index shows negative readings despite Bitcoin’s price gains. This metric compares Bitcoin prices on Coinbase against Binance prices.

A negative premium means Bitcoin costs less on Coinbase than on Binance. This pattern indicates U.S. investors are selling more than buying compared to global markets.

Singapore-based exchange Phemex explained that a negative premium suggests strong selling pressure and potential capital outflows from U.S. markets. The indicator peaked in October alongside Bitcoin’s price before turning negative in early November.

U.S. demand has traditionally led major Bitcoin rallies. This pattern strengthened after President Trump’s reelection in November 2024.

Some analysts believe U.S. investors may be waiting for regulatory clarity. The Senate has pushed back the markup of the Clarity Act to late January to secure bipartisan support.

The Clarity Act aims to establish clearer rules for cryptocurrency regulation. Some analysts expect Bitcoin could reach new highs if the legislation becomes law.

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