The total market capitalization of cryptocurrencies increased by around 2% in the last 24 hours, reaching around $3.63 trillion on Thursday, January 16, during the first European session. As Bitcoin’s (BTC) correlation with traditional stock markets continues to decline and as Donald Trump’s highly anticipated inauguration approaches, the crypto market has now surpassed Apple Inc. (NASDAQ: AAPL) in terms of valuation.
The price of Bitcoin increased by 3% in the last 24 hours, briefly crossing the $100,000 mark before falling back to around $99.4,000 at the time of writing. Ripple Labs’ XRP dominated the altcoin market with impressive gains, fueling hopes of a new season ahead.
Here’s everything that’s coming up.
What’s Driving the Crypto Market Rebound?
Crypto short squeeze
After Bitcoin price opened on Monday in a Dragonfly Doji candlestick, bullish sentiment took over. Over the past 24 hours, more than $346 million has been liquidated in the crypto leveraged market, with the majority involving short traders.
As more sellers turn to buyers, the emergence of a strong short squeeze has propelled bullish sentiment in cryptocurrencies.
Renewed interest from whaling investors
Institutional and retail traders have shown renewed interest in crypto following the strong rebound over the past two weeks. According to CoinShares data, digital asset investment products saw $48 million in inflows last week, with Bitcoin, Ethereum and XRP leading the way.
U.S. spot Bitcoin ETFs recorded a net cash inflow of $755 million on Wednesday, recouping losses from the previous four days. Spot Ether ETFs also saw a net inflow of $59 million, breaking a four-day drought.
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US economic news fuels crypto optimism
The cryptocurrency market has gradually gained bullish momentum, catalyzed by high-impact news from the United States. Ahead of the highly anticipated inauguration of pro-crypto POTUS Donald Trump, US inflation data is showing a cooling effect, sparking optimism over a possible rate cut later this month.
Additionally, there is growing support for a national Bitcoin reserve. Texas State Senator Charles Schwertner introduced a bill to create a strategic Bitcoin reserve, and Oklahoma Representative Cody Maynard did the same in his state. These moves reflect the growing institutional support for Bitcoin.
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With the rise of Bitcoin and other cryptocurrencies, it’s clear that the market is gearing up for something big – hopefully another powerful bull rally!
FAQs
The cryptocurrency is up today due to a short squeeze, whale investor interest, and positive U.S. regulation ahead of Trump’s inauguration.
Bitcoin surged more than 3% on strong bullish sentiment, a short squeeze and institutional support, briefly crossing the $100,000 mark.
The price of Ethereum is increasing due to renewed interest from institutional investors and positive market trends, including the growing influx of ETFs.
