Bitcoin Price Hits $72K, Top Reasons Why It’s Skyrocketing Today

Bitcoin price hit $72K today, surging more than 3% over the last 24 hours. This comes despite today’s crypto options expiry and the US PCE inflation data release. This rally comes with support from derivatives traders and institutional buying, as evidenced by spot Bitcoin ETF inflows.

Short Squeeze and Technical Rebound Push Bitcoin Price to Above $72K

Following recent dips tied to the US-Iran conflict, Bitcoin benefited from deeply negative funding rates in perpetual futures markets. This triggered a classic short squeeze, driving prices higher.

On-chain analyst IT Tech revealed that spot sellers are dumping and futures traders are buying. Bitcoin Perpetual CVD has increased to 1.32 billion, keeping the price up.

The technical chart in the daily timeframe shows Bitcoin price successfully bouncing above the 50-day moving average. If bulls hold advance, prices could rally to even $81K.

Renewed Institutional Accumulation and Bitcoin ETF Inflows

Institutions appear to be aggressively buying, as evidenced by Coinbase Premium spikes. Analyst Ted Pillows said “Coinbase Premium is going up, which means spot demand is strong.”

If BTC holds above $70,000, it could rally towards the $76,000 level, Pillows predicted. Matrixport also noted that a setup for a Bitcoin price rebound Is quietly emerging as liquidity improves and stablecoin inflows return.

Moreover, continued positive flows into spot Bitcoin ETFs have kept traders bullish for the short term. Farside Investors data shows fourth-consecutive inflows of $53.8 million. BlackRock’s IBIT recorded $46.1 millin in inflows, reflecting sustained demand from large players treating BTC as a macro hedge amid fiat concerns and economic uncertainty.

Bullish Bitcoin Options Expiry and US PCE Inflation Hopes

Almost 27K BTC options of notional value $1.9 billion expired today. The put/call ratio was 0.97, indicating a neutral sentiment. Deribit highlighted that open interest (OI) was heavily concentrated on puts between $55,000 and $60,000 and calls between $75,000 to $80,000.

As CoinGape reported, BTC options showed stable crypto market sentiment. This happened as BTC 25 delta skew fell, indicating lower demand to hedge downside protection.

Bitcoin max pain price was at $69,000, with the probability of Bitcoin options expiring above $71,000 almost 86%. This triggered an upside momentum in Bitcoin price for a potential rally.

The US core PCE inflation, which excludes food and energy, is forecast to rise 0.4%, similar to the previous month. Core rate is seen edging up to 3.1% from 3%.

Meanwhile, US PCE inflation is expected to rise 0.3% MoM in January, slightly below December’s 0.4% increase. On a year-over-year basis, headline PCE inflation is likely to hold steady at 2.9%.

Falling Oil Prices Trigger Bitcoin Price Rise

Despite challenges like oil price volatility and tech selloffs, Bitcoin has shown relative strength. Coordinated global actions, such as strategic reserve releases, helped curb some inflation concerns.

WTI crude oil futures fell more than 1.70% to $94 and Brent oil futures slipped 1% to below $100 on Friday. It followed the US issuance of a 30-day waiver for countries to buy sanctioned Russian oil and petroleum products currently stranded at sea.

Bitcoin price is currently trading at $72,503, with a 24-hour low and high of $69,402 and $72,571, respectively. Furthermore, trading volume has increased by almost 10% in the last 24 hours, indicating a rise in interest among traders.