Bitcoin Rally Sees $700 Million in Bearish Crypto Bets Wiped Out

Core Insights - Bitcoin has reached a two-month high, rising as much as 2.4% to $96,348, indicating a potential breakout after weeks of stagnation [1] - Ether, the second-largest cryptocurrency, also saw significant gains, increasing by 5.1% [1] - The recent rally has led to the liquidation of over $600 million in short positions across all cryptocurrencies, with $290 million specifically in Bitcoin [5] Market Dynamics - Bitcoin's performance has been influenced by a less-than-expected rise in US inflation and ongoing tensions surrounding the US Federal Reserve, which may enhance the appeal of Bitcoin as a safe-haven asset [4] - The current macroeconomic environment is viewed positively for Bitcoin, with traders anticipating increased allocations to the cryptocurrency as it aligns with a gold-catch-up narrative [3][7] Investment Trends - A significant inflow of $754 million into US-listed Bitcoin exchange-traded funds (ETFs) on a recent Tuesday reflects growing investor confidence in the rally [5] - Analysts suggest that a sustained break above $95,000 could lead Bitcoin towards the $100,000 mark and potentially the 200-day moving average of $106,115 [6]