Why Crypto Market is Up Today: Bitcoin Hits $100K, XRP Leads Altseason

The total cryptocurrency market cap has risen by about 2% in the past 24 hours, reaching approximately $3.63 trillion as of Thursday, January 16, during the early European session. As Bitcoin’s (BTC) correlation with traditional stock markets continues to decrease, and with the much-anticipated inauguration of Donald Trump approaching, the crypto market has now surpassed Apple Inc. (NASDAQ: AAPL) in valuation.

Bitcoin’s price rose by 3% in the last 24 hours, briefly breaking the $100k mark before retracing to around $99.4k at the time of writing. Ripple Labs’ XRP led the altcoin market with impressive gains, fueling hopes of an upcoming altseason.

Here’s everything that’s brewing.

What’s Driving the Crypto Market Rebound?

Crypto Short Squeeze

After Bitcoin price opened Monday in a dragonfly Doji candlestick, the bullish sentiment has gained the upper hand. In the past 24 hours, more than $346 million was liquidated from the crypto-leveraged market, with the majority involving short traders.

With more sellers turning to buyers, the emergence of a robust short-squeeze has propelled the crypto bullish sentiment.

Renewed Interest from Whale Investors

Both institutional and retail traders have shown renewed interest in crypto following the strong rebound of 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 saw a net cash inflow of $755 million on Wednesday, recovering losses from the previous four days. Spot Ether ETFs also recorded a $59 million net inflow, breaking a four-day dry spell.

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U.S. 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 much-anticipated inauguration of pro-crypto POTUS Donald Trump, the US inflation data shows a cooling effect, thus raising optimism of a potential rate cut later this month. 

Additionally, there’s growing support for a national Bitcoin reserve. Texas State Senator Charles Schwertner has introduced a bill to create a Strategic Bitcoin Reserve, and Oklahoma Representative Cody Maynard has done the same in his state. These moves reflect increasing institutional backing for Bitcoin.

With Bitcoin and other cryptocurrencies gaining momentum, it’s clear that the market is preparing for something big – hopefully, another powerful bull rally!

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