BTC ETFs Log $753M in Inflows, Short Liquidations Skyrocket

Core Insights - The crypto market reacted positively to the US inflation report, with the Consumer Price Index (CPI) for December 2025 showing a 2.7% year-over-year increase, consistent with November's rate [1][2] - The CPI data is significant as it may influence the Federal Reserve's decisions regarding interest rates, with current inflation still above the 2% target [2] - Following the CPI release, Bitcoin surpassed $96,000 for the first time in two months, while Ethereum reached a two-month high of $3,340 [3] Market Reactions - The cryptocurrency market experienced a notable spike, leading to a 211% increase in total liquidations, amounting to $688 million, with $93 million in long positions and $595 million in short positions [4] - Bitcoin accounted for $294.7 million in daily liquidations, with $28 million in longs and $266.7 million in shorts, affecting 126,235 traders [5] - The largest liquidation occurred in the ETH/USDT pair on Binance, valued at $12.9 million [5] Investment Products - Spot Bitcoin exchange-traded funds (ETFs) in the US saw a net inflow of $753.8 million, the highest since October 7, 2025, driven by Fidelity's $351.4 million contribution [6] - Spot Ethereum ETFs also recorded a $130 million net inflow, led by BlackRock's $53.3 million investment [6] - Future market movements may be influenced by the upcoming US Federal Reserve rate decision and geopolitical tensions between Iran and the US [6]