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Reading: Bitcoin Exceeds $94 Thousand, Markets Price in Fed Tension: Hard Short Squeeze in XRP
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EdaFace Newsfeed > Latest News > Bitcoin and BTC > Bitcoin Exceeds $94 Thousand, Markets Price in Fed Tension: Hard Short Squeeze in XRP
Bitcoin and BTC

Bitcoin Exceeds $94 Thousand, Markets Price in Fed Tension: Hard Short Squeeze in XRP

vitalclick
Last updated: January 13, 2026 9:34 pm
7 hours ago
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Contents
ETF Inflows Turned Positive AgainExpectation of 100 Thousand Dollars is on the Table AgainTension Rising Between Trump Administration and FedHard Short Squeeze on XRP: Liquidations ExplodedXRP Keeps the Pulse of Derivatives MarketsMacro Shocks Are Still Hitting Crypto Hard

Cryptocurrency markets started the day with a strong upward wave today, January 13, 2026. Bitcoin maintained its momentum since the beginning of the year by briefly rising above the $94,100 level during the day. The rise took place in the shadow of December inflation data announced in the USA and the increasing tension between the Trump administration and the US Federal Reserve (Fed).

Although the announcement of the US Consumer Price Index (CPI) as 2.7% on an annual basis indicates that inflation continues to persist, it did not dampen the appetite for risky assets. Although Bitcoin stabilized just above $94,000 towards 23:00 UTC, it managed to remain at a premium of approximately 2% compared to the $91,600 level a day ago.

ETF Inflows Turned Positive Again

The rise in Bitcoin was also supported by a remarkable turnaround in fund flows into spot Bitcoin ETFs. As its long-running streak of outflows comes to an end, BlackRock’s IBIT ETF stood out with net inflows of nearly $112 million. Grayscale’s GBTC fund recorded an additional inflow of approximately $64 million.

With this recovery, total cumulative inflows into spot Bitcoin ETFs rose to over $56 billion. The fact that institutional investors started to take positions again was decisive in Bitcoin holding above the 92 thousand dollar level.

Expectation of 100 Thousand Dollars is on the Table Again

While the rise in Bitcoin increased its market value to over 1.87 trillion dollars, the size of the total cryptocurrency market reached 3.28 trillion dollars. As prices returned to levels last seen on January 7, investors began to debate whether Bitcoin could test the $100,000 threshold before the end of the first quarter.

However, the 2.7% CPI data announced is still above the Fed’s 2% inflation target. In terms of traditional monetary policy, this situation does not constitute a strong basis for aggressive interest rate cuts.

Tension Rising Between Trump Administration and Fed

Despite this, the Trump administration has increased the pressure on the Fed. While calls for lowering interest rates grew harsher, the Department of Justice (DOJ) launched an investigation into the Fed, further increasing tensions. Critics interpret this step as a direct interference with the independence of the central bank. This environment of political uncertainty increased volatility in crypto markets and re-strengthened Bitcoin’s “alternative to macro risks” narrative.

Hard Short Squeeze on XRP: Liquidations Exploded

The impact of the macroeconomic surprise was not limited to Bitcoin. Especially in derivative markets, XRP showed a remarkable movement. While a total of $76,450 of positions were liquidated in just one hour, the overwhelming majority of these liquidations came from short (bearish) positions.

According to the data:

  • Short position liquidations: $70,180
  • Long position liquidations: $6,270
  • Liquidity imbalance: 1.122%

This chart points to a classic “short squeeze” scenario. Investors positioned in anticipation of a decline were forced to buy rapidly, mechanically pushing the price up.

XRP Keeps the Pulse of Derivatives Markets

Analysts emphasize that this extreme imbalance in XRP is more than a technical coincidence. XRP’s high liquidity and market structure make it extremely sensitive to macro developments. The sudden price jump following the CPI data indicates that market depth has weakened and short-term arbitrage transactions have a great impact on the price.

In particular, the $2.08 level is being questioned as a strong resistance, suggesting that XRP has become a “tension indicator” for short-term speculative positions.

Another noteworthy point is that although there are liquidations in Bitcoin and Ethereum, the buyer-seller imbalance is much harsher in XRP. In the same time period, $4.72 million was liquidated in Bitcoin and $3.39 million in Ethereum.

Macro Shocks Are Still Hitting Crypto Hard

The weakness observed in XRP ETFs before the CPI data showed that fragility in the market had already accumulated. The macroeconomic surprise only accelerated this imbalance. Recent events have once again revealed that even the largest crypto assets are still vulnerable to sentiment shifts and sudden position adjustments in derivative markets.

In the coming weeks, both political developments on the Fed front and the course of ETF flows will continue to be decisive for the direction of crypto markets.

Disclaimer: The information contained in this content is not investment advice. Please note that cryptocurrencies involve high volatility and therefore risk. It is recommended that you make your investment decisions based on your own research and risk assessments. You can review our Trust Center page for detailed information.

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