Bitcoin is once again knocking on the door of the six-figure mark. After a decisive break above $95,000 this Tuesday, the crypto market is buzzing with anticipation. Unlike previous rallies driven by speculative “paper” trading, analysts suggest this current move is backed by something much more substantial: genuine demand for the asset itself.
The latest data shows Bitcoin climbing over 4.6% in a 24-hour window, catching many bearish traders off guard. According to CoinGlass, this sudden surge triggered the liquidation of approximately $269 million in short positions, effectively clearing the path for further upward momentum.
Why Spot Demand is the Secret Sauce for This Bull Run
Market experts are increasingly optimistic because this rally appears to be driven by spot buying. In the crypto world, spot buying means investors are purchasing actual Bitcoin rather than trading futures or options contracts. This is a crucial distinction; while derivatives can often inflate prices artificially, spot demand indicates that investors are accumulating the underlying asset, which provides a much more solid floor for the price.
Analyst Will Clemente noted on social media that the strength of this rally lies in this organic buying pressure. When investors move Bitcoin into cold storage or long-term portfolios, it reduces the available supply on exchanges, creating a “supply shock” that can drive prices higher even faster.
Historically, January has been a relatively quiet month for Bitcoin, averaging gains of about 4%. However, February has a reputation for being much more explosive, with average historical returns exceeding 13%. If Bitcoin can maintain its current trajectory, it may enter its most bullish month with significant momentum.
Will Retail FOMO Push Bitcoin Over the Finish Line?
The “psychological” barrier of $100,000 is more than just a number; it is a major catalyst for market sentiment. For the past two months, the Crypto Fear & Greed Index has been stuck in a cycle of “fear” and “extreme fear,” following a massive market liquidation in October. As of Wednesday, the index remains cautious with a score of 26, but that could change overnight.
According to the sentiment platform Santiment, if Bitcoin begins to tease the $100K level, we are likely to see a return of “Retail FOMO” (Fear Of Missing Out). This occurs when casual investors, who have been sitting on the sidelines due to fear, suddenly rush back into the market to avoid being left behind during a historic breakout.
Predictive markets like Polymarket currently give Bitcoin a 51% chance of reclaiming $100,000 by February 1st. While the road to six figures has been bumpy since the brief dip last November, the consensus among analysts like Michaël van de Poppe is clear: the bull market isn’t over—it might just be getting started. For those watching the charts, any minor “dips” are increasingly being viewed as final opportunities to buy before the six-figure era begins.
