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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Dec 12, 2024 07:05 UTC
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Why Crypto Market Is Up Today: Key Reason
Crypto market surges 5.35% in 24 hours, driven by Bitcoin’s rise above $100K.
Bitcoin rallies 3% as inflation data sparks speculation of Federal Reserve rate cuts ahead.
Spot Bitcoin ETFs see $538M inflows, with BlackRock leading at $302M in investments.
The crypto market is on fire! Over the past 24 hours, the total market cap has jumped 5.35%, reaching $3.64 trillion, as Bitcoin reclaims the critical $100K mark. Trading volume has also surged by 35% to $225 billion, signaling strong momentum as December begins.
With altcoins joining the rally and institutional interest hitting new highs, the market is buzzing with optimism.
Altcoins are not lagging behind. Top cryptocurrencies like Ethereum, Solana, XRP, and Dogecoin have all gained between 5% and 9%, adding to the market’s bullish sentiment and drawing significant investor interest.
Could this be the start of a record-breaking month for cryptocurrencies? Let’s dive into the key drivers.
What’s Boosting Bitcoin’s Price?
Bitcoin, the market leader, has climbed to $100,100, marking a 3% increase. A key factor behind this rise is the release of the U.S. November Consumer Price Index (CPI) data, showing a 2.7% increase, in line with expectations.
This data indicates that inflation remains under control, fueling speculation that the Federal Reserve may soon lower interest rates. Lower rates typically make riskier assets like cryptocurrencies more attractive, boosting demand for Bitcoin.
Institutional Investment Reaches New Heights
Institutional interest in Bitcoin continues to grow. On December 11, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their 10th consecutive day of inflows, with total net inflows surpassing $34 billion.
Data from Lookonchain reveals that these ETFs brought in $538.45 million during this period. BlackRock led the inflows with $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.
Liquidations Spike Amid the Rally
While the rally has benefited many, it has also caused significant losses for some traders. In the last 24 hours, liquidations totaled $272.88 million, affecting 95,658 traders unprepared for Bitcoin’s swift move.
Short positions were hit hardest, with $193.43 million in short liquidations as traders underestimated Bitcoin’s rapid rise.
Outlook for Bitcoin
Bitcoin is currently trading at $100,598, just shy of its all-time high of $104,087. Holding above the crucial $100,000 support level could set the stage for new records. However, if the price dips below this level, it may fall to around $95,668, potentially increasing selling pressure.
Despite challenges like liquidations, the market outlook remains strong, with Bitcoin and other cryptocurrencies well-positioned for further gains and potential record-breaking milestones.
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FAQs
Bitcoin’s rise to $100,100 is fueled by positive CPI data and growing institutional interest, making it an attractive asset amid lower inflation.
CPI data showing controlled inflation boosts Bitcoin’s appeal, signaling potential rate cuts from the Federal Reserve, which strengthens demand for crypto.
Altcoins, including Ethereum, Solana, and XRP, are benefiting from Bitcoin’s bullish momentum, with gains of 5-9% as investor sentiment improves.
Yes 
No 
