Why Crypto Market Is Up Today: Key Reason

The Crypto Market Soars to New Heights

In a remarkable surge, the cryptocurrency market has experienced a 5.35% increase in total market capitalization within just 24 hours, reaching an astounding $3.64 trillion. Bitcoin has led the charge, reclaiming the $100,000 milestone. Trading volume has also witnessed a significant jump of 35%, hitting $225 billion, indicating strong bullish momentum for December.

Altcoins Share the Gains

Altcoins have not been left behind in this rally. Ethereum, Solana, XRP, and Dogecoin have all recorded impressive gains ranging from 5% to 9%.

CPI Report Boosts Bitcoin to $100K

Bitcoin, the market leader, has surged past $100,100, marking a rise of 3%. A key catalyst for this rally is the release of the U.S. November Consumer Price Index (CPI) data, which showed a 2.7% increase, in line with expectations.

This data suggests a controlled inflation rate, prompting speculation that the Federal Reserve may consider lowering interest rates soon. A rate cut could make riskier investments like cryptocurrencies more enticing, further driving demand for Bitcoin.

Bitcoin ETFs Witness Significant Inflows

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

According to Lookonchain, these 10 Bitcoin ETFs have 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, highlighting a substantial increase in institutional adoption of Bitcoin.

Market Volatility Triggers Liquidations

While the market rally has brought gains to many, not all traders have been as fortunate. In the past 24 hours, $272.88 million worth of trades were liquidated, affecting 95,658 traders caught off guard by the price movements.

Short positions bore the brunt of the liquidations, with $193.43 million in losses, as many traders underestimated Bitcoin's rapid ascent.

Bitcoin Eyes New All-Time High

Bitcoin currently trades at $100,598, approaching its all-time high of $104,087. If Bitcoin can maintain support above the $100,000 level, it has the potential to set new records.

However, if the price falls below this level, it could retrace to around $95,668, leading to increased selling pressure.