Why Crypto Market Is Up Today: Key Reason

The post Why Crypto Market Is Up Today: Key Reason appeared first on Coinpedia Fintech News

The crypto market is on fire! In just 24 hours, the total market cap has skyrocketed by 5.35%, reaching a massive $3.64 trillion, as Bitcoin surges back above the $100K mark. Not only that, but trading volume has also jumped 35%, hitting $225 billion, signaling strong momentum for December. 

Altcoins aren’t left behind either, with Ethereum, Solana, XRP, and Dogecoin all experiencing impressive gains of 5% to 9%.

CPI Report Boast BTC To $100K

Bitcoin, the leader of the market, has bounced back above $100,100, reflecting a rise of 3%. A key factor behind Bitcoin’s rise is the release of the U.S. November Consumer Price Index (CPI) data, which showed a 2.7% increase, just as expected.

This data suggests that inflation is under control, which has led to growing speculation that the Federal Reserve may soon cut interest rates. A rate cut would make riskier investments, like cryptocurrencies, more attractive, further driving demand for Bitcoin.

Bitcoin ETFs record $439.5m inflows 

In addition to positive economic data, institutional interest in Bitcoin is growing. On December 11, spot Bitcoin exchange-traded funds (ETFs) in the United States marked their 10th consecutive day of inflows, with total net inflows surpassing $34 billion.

According to Lookonchain data, these 10 Bitcoin ETFs attracted $538.45 million in inflows, with BlackRock leading the charge at $302.89 million, followed by Fidelity, Galaxy, and Grayscale. 

Over the past 10 days alone, more than $4 billion has flowed into these funds, signaling a significant increase in institutional interest in Bitcoin.

Market volatility liquidates $272.88 million

However, not all traders are benefiting from this market rally. In the past 24 hours, $272.88 million worth of trades were liquidated, with 95,658 traders caught off guard by the price movement. 

Short positions were hit hardest, with $193.43 million of short liquidations, as many traders did not expect Bitcoin to rise so quickly.

Bitcoin Eyes New All-Time High

Bitcoin is currently trading at $100,598, not far from its all-time high of $104,087. If Bitcoin can hold above the $100,000 level as support, there’s potential for it to break new records. 

However, if the price falls below this level, it could drop back to around $95,668, adding more selling pressure on bitcoin.