Bitcoin gained significant momentum on Wednesday, trading close to the $95,000 mark as softer-than-expected US inflation data and rising geopolitical tensions boosted demand for alternative safe-haven assets. The leading cryptocurrency was trading at $95,266 on January 14.

Market Performance Overview

The cryptocurrency market demonstrated strong performance across major digital assets. Bitcoin and Ethereum posted impressive gains of over 4.42% and 7.23% respectively in the last 24 hours. The broader altcoin market showed even stronger momentum, with XRP, BNB, Solana, Tron, Dogecoin, Cardano, and Hyperliquid surging by over 9%.

Market Capitalisation Surge

The global cryptocurrency market capitalisation rose 4.58% to $3.25 trillion according to CoinMarketCap data. Market analysts noted that total crypto market capitalisation reached $3.33 trillion, marking the highest level this year and signalling rotation into risk assets.

Riya Sehgal, Research Analyst at Delta Exchange, explained that Bitcoin rose over 4% to trade near $95,000, reclaiming multi-week resistance as spot buying and higher open interest supported prices. Ethereum gained more than 7% above $3,300, driven by solid network activity and trading volumes.

Weekly Performance Analysis

Over the past week, Bitcoin and Ethereum recorded gains of 2.85% and 2.55% respectively. Several major altcoins demonstrated stronger weekly performance:

Positive performers:

• BNB, Solana, Tron, Dogecoin, and Cardano: Up by over 4%

Negative performers:

• XRP: Down 4.19%
• Hyperliquid: Down 5.41%

Market Drivers and Analysis

Akshat Siddhant, Lead Quant Analyst at Mudrex, highlighted that rising geopolitical tensions in the Middle East have pushed investors toward alternative safe havens like crypto, supporting the broader market rally. On-chain data adds to the positive setup, with short-term holders moving back into profit, which historically indicates that selling pressure eases and extends upside potential.

Market data showed improving liquidity and reduced caution following previous sell-offs. Despite the rally, market sentiment remains neutral according to CoinDCX Research, indicating that traders maintain caution about the surge. Nearly $600.00 million worth of short positions were liquidated over the past 24 hours following the move.

Expert Market Perspectives

CoinSwitch Markets Desk noted that Bitcoin climbed back after US CPI data showed inflation remains stable at approximately 2.7% year-over-year, easing fears of further Federal Reserve rate hikes. The analysis suggests that as long as Bitcoin holds above $96,000, the path remains open toward $100,000 and higher, while trading below $95,000 would signal short-term cooling.

Vikram Subburaj, CEO of Giottus, observed that the move suggests buyers are defending higher levels even as macro uncertainty persists. On-chain data point to a cooling of aggressive profit-taking, with realised profits moderating sharply from previous peaks. Momentum indicators have reverted toward neutral territory, consistent with consolidation above prior breakout levels rather than distribution.

Nischal Shetty, Founder of WazirX, emphasised that recent developments around the Digital Asset Market Clarity Act have played a meaningful role in Bitcoin's move toward the $95,000 mark. On the macro side, rising oil prices driven by Middle East tensions and a weaker Japanese yen are adding volatility to the market environment.

Bitcoin slipped back toward the $90,000 mark after a brief attempt to sustain levels above $92,000 on Tuesday. The pullback came after Trump announced a 25% tariff on any country trading with Iran, adding geopolitical uncertainty to cryptocurrency markets. The world's largest cryptocurrency was trading at $91,821 level on Tuesday.

Market Performance Overview

The cryptocurrency market showed mixed performance across major digital assets in the past 24 hours:

CoinSwitch Markets Desk noted that BTC briefly broke above $92,000 before pulling back toward $90,000. The comments by Trump announcing the 25% tariff on any country trading with Iran added geopolitical uncertainty into markets.

Safe-Haven Assets Rally Amid Uncertainty

Traditional safe-haven assets rallied sharply during the cryptocurrency pullback. Gold surged past $4,500 while silver also posted gains. This flight to traditional safe havens coincided with significant outflows from Bitcoin exchange-traded funds.

BTC ETFs recorded over $650 million in net outflows over the past week, effectively erasing much of the optimism seen at the start of the year, according to CoinSwitch Markets Desk. However, after several sessions of significant redemptions in early January, spot Bitcoin ETFs recorded net inflows of about $187 million on January 12.

Weekly Performance Analysis

The weekly performance data revealed divergent trends across major cryptocurrencies:

Expert Analysis

Vikram Subburaj, CEO of Giottus, observed that Bitcoin is trading around $91,000 on Tuesday to extend a phase of consolidation after the sharp volatility seen earlier this month. The world's largest crypto asset moved between $90,000 and $92,300 in the latest session, reflecting that the market is neither decisively risk-on nor meaningfully risk-off.

Riya Sehgal, Research Analyst at Delta Exchange, noted that Bitcoin and Ethereum remain stuck in a holding pattern as macro uncertainty continues to outweigh short-term bullish narratives. Bitcoin's brief push above $92,000 following headlines around a potential US Justice Department investigation into Federal Reserve Chair Jerome Powell failed to trigger sustained follow-through, highlighting how headline-driven rallies are struggling to gain traction without stronger underlying demand.

Market Outlook

The CoinDCX Research Team indicated that Bitcoin continues to consolidate within the same price range, appearing to be accumulating gains before the next price action. However, in the broader perspective, the cryptocurrency maintains a strong ascending trend. With US CPI data imminent, crypto markets appear positioned for volatility. Until macro clarity improves and fund flows stabilise, both Bitcoin and Ethereum are likely to remain range-bound, with any breakout requiring confirmation from renewed institutional participation rather than headlines alone.