Why is Crypto Market Up Today?

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The crypto market is back on the rise, with its total value reaching $3.57 trillion after a 2.5% increase in the past 24 hours. Bitcoin, the largest cryptocurrency, is leading this recovery, trading at $101,380. Other top coins, including XRP, Solana, and Dogecoin, also saw strong gains of 8.5%, 7%, and 3.8%, respectively.

CPI Report Brings Optimism

The recent rise in crypto prices follows the release of the U.S. Consumer Price Index (CPI) report for December. The report showed a 0.4% increase, slightly above the expected 0.3%. Compared to last year, the CPI is up 2.9%, meeting predictions. These numbers suggest inflation is still an issue, but the steady improvement has reassured investors.

Litecoin ETF May Get Approval

Litecoin is gaining attention as the Nasdaq filed for a Litecoin ETF. This follows updated feedback from the U.S. Securities and Exchange Commission (SEC). Experts believe the chances of approval are now higher, creating excitement in the market.

Bitcoin ETFs See Strong Inflows

Bitcoin exchange-traded funds (ETFs) are seeing strong demand. On January 16, Bitcoin ETFs recorded an inflow of $626.1 million, following a $755 million inflow the day before. BlackRock, a leading asset manager, contributed $527.9 million to this surge. These inflows show growing interest in BTC after days of outflow.

Liquidations Push Prices Higher

The rise in crypto prices has been followed by a wave of liquidations in the derivatives market. Over $326 million worth of positions were liquidated in the last 24 hours, with $182 million being short positions. This means traders betting against the market were forced to close their trades. Binance recorded the largest single liquidation, worth $6.09 million.

Bitcoin Stays Strong Above $100,000

Bitcoin has successfully held its position above the critical $100,000 mark, a psychological support level that boosts investor confidence. Many analysts believe this stability could aim for $105,000 if buying pressure remains steady.