The world of cryptocurrency is witnessing a spectacular surge, with the market showing remarkable growth. In the past 24 hours alone, the total market cap has soared by an impressive 5.35%, reaching a staggering $3.64 trillion. This surge is largely driven by Bitcoin, which has once again surged past the $100,000 mark. Alongside this, trading volume has also seen a significant increase of 35%, reaching $225 billion, which indicates strong momentum as we move further into December. Altcoins such as Ethereum, Solana, XRP, and Dogecoin are not far behind, each demonstrating notable gains ranging from 5% to 9%.
CPI Report Lifts Bitcoin Above $100K
Bitcoin, the frontrunner in the crypto market, has managed to rebound above $100,100, marking a 3% increase. A pivotal factor contributing to Bitcoin’s rise is the release of the U.S. November Consumer Price Index (CPI) data, which indicated a 2.7% increase, aligning with expectations. This data implies that inflation is being kept in check, sparking speculation that the Federal Reserve might soon lower interest rates. Such a move would enhance the attractiveness of riskier investments, including cryptocurrencies, thus driving further demand for Bitcoin.
Bitcoin ETFs See Record Inflows of $439.5 Million
Beyond favorable economic indicators, institutional interest in Bitcoin continues to grow. On December 11, U.S. spot Bitcoin exchange-traded funds (ETFs) reported their 10th consecutive day of inflows, with total net inflows exceeding $34 billion. According to Lookonchain data, these 10 Bitcoin ETFs attracted $538.45 million in inflows. BlackRock led the influx with $302.89 million, followed by Fidelity, Galaxy, and Grayscale. In just the past 10 days, over $4 billion has poured into these funds, highlighting a notable rise in institutional interest in Bitcoin.
Market Volatility Results in $272.88 Million Liquidations
Despite the market’s upward trend, not all traders are reaping the benefits. In the last 24 hours, trades worth $272.88 million have been liquidated, affecting 95,658 traders who were caught off guard by the rapid price movements. Short positions were particularly impacted, with $193.43 million worth of short liquidations, as many traders did not anticipate Bitcoin’s swift ascent.
Bitcoin on the Verge of a New All-Time High
Currently trading at $100,598, Bitcoin is inching closer to its all-time high of $104,087. Should Bitcoin maintain its position above the $100,000 support level, there is potential for it to set new records. However, if the price dips below this threshold, it might retreat to around $95,668, which would increase the selling pressure on Bitcoin.
In conclusion, as the cryptocurrency market continues to gain momentum, investors and traders are keenly observing these developments. With institutional interest on the rise and economic indicators showing promise, the coming weeks could be pivotal for Bitcoin and the broader crypto market.
