$BTC just reclaimed $96K and ETF demand is tightening supply fast

$BTC pushed above $96,000, marking its highest level this year and its strongest showing since November. The move capped a near 5% rally in 24 hours, with BTC briefly touching the $96,600 area before cooling near $95K. Momentum has clearly flipped back toward buyers.

The driver is institutional flow. U.S. spot Bitcoin ETFs pulled in over $750M in net inflows in a single day. Fidelity’s FBTC and Bitwise’s BITB led the charge, showing that demand is not slowing as price rises. This is steady absorption, not speculative chasing.

Macro conditions helped set the stage. U.S. CPI came in at 2.7%, in line with expectations, easing inflation fears and supporting risk assets. While uncertainty around Trump-era tariff court rulings remains, the market reaction shows liquidity and flows are taking priority.

Bitwise CIO Matt Hougan added fuel to the move, arguing that ETF demand is structurally bullish. Since launch, ETFs have been buying more than 100% of new Bitcoin supply. Price has not gone parabolic yet because long-term holders have been willing to sell. Hougan’s view is simple. That supply is not infinite.

If ETF inflows persist, sellers eventually run out. When that happens, marginal demand has nowhere to go but higher. That is how parabolic moves start, not from hype, but from supply imbalance.

The breakout caught traders off guard. Roughly $688M in short positions were liquidated in 24 hours, showing how crowded the downside had become. Short-term squeezes add fuel, but the bigger picture is structural.

Bitcoin is moving less on headlines and more on sustained institutional absorption. If these flows continue, this move may be the early phase of a supply-driven expansion, not just another spike.