Bitcoin Surges to $97,700 as Corporate Buying and Cooling Inflation Drive Rally Toward $100K

Strategy Inc. just dropped $1.3 billion on Bitcoin—their biggest purchase since July 2025—helping push the cryptocurrency to $97,700 yesterday, an eight-week high that has traders buzzing about the psychological $100,000 level.

The surge came as a perfect storm of positive catalysts aligned. U.S. inflation data showed the Consumer Price Index cooling to 2.7% year-over-year in December, with core CPI dropping from 2.7% to 2.6%. Meanwhile, Strategy's massive acquisition of 13,627 Bitcoin at an average cost of $91,519 reinforced institutional confidence in the asset.

The rally had immediate market consequences. Approximately $700 million in Bitcoin short positions were liquidated as the price broke through resistance levels. Spot Bitcoin ETFs saw matching inflows exceeding $700 million, suggesting institutional money is following Strategy's lead.

The Numbers Behind the Move

This wasn't just another speculative pump. Strategy now holds 687,410 Bitcoin, cementing its position as the largest corporate holder. The purchase came after Bitcoin had consolidated in a sideways pattern for 54 days, trading between $88,500 and $95,500—exactly the kind of technical setup that often precedes significant moves.

Polymarket traders are betting heavily on continued upside, with 73% odds that Bitcoin reaches $100,000 this January. The total crypto market cap rose toward $3.25 trillion, and the Fear & Greed Index climbed into neutral territory in the mid-40s.

The Retail Reality Check

Here's what's interesting though: this appears to be an institutional-driven rally, not a retail frenzy. The Coinbase Premium Index shows Bitcoin trading at a discount on Coinbase relative to global averages—a clear sign that U.S. retail demand remains weak.

This matters because sustainable Bitcoin rallies historically need both institutional and retail participation. Right now, we're seeing corporate treasuries and ETFs do the heavy lifting while everyday investors stay on the sidelines.

What's Next?

Bitcoin still sits well below its October 2025 all-time high of approximately $126,000, having corrected 36% from that peak before this week's rally. The current move has pushed through key technical resistance at $94,810, but moderate trading volumes suggest this reflects positioning shifts rather than broad-based enthusiasm.

Regulatory clarity could provide the next catalyst. The Senate pushed back markup of the Digital Asset Market Clarity Act to late January to secure bipartisan support—potentially removing a key uncertainty that's kept some institutional money on the sidelines.

The path to $100,000 looks increasingly plausible given the technical setup and institutional momentum. But whether Bitcoin can sustain those levels—and push toward new all-time highs—may depend on whether retail investors eventually join the party or if corporate buying alone can carry the market higher.