The cryptocurrency market experienced a notable surge on January 14, with a 3.33% rise in the last 24 hours. The market capitalization is now at 3.24 trillion with robust returns on various assets.
Bitcoin price rallied above $95,000, eyeing $100,000 mark, whereas Ethereum price increased to $3,300 after taking a bullish turn. Dash recorded a 40% growth, and Story was next with a 30% growth.
Internet Computer (ICP), Pepe (PEPE), Optimism (OP), and Pudgy Penguins (PENGU) are among other leading performers in the market, which made the market uptrend in general.
Reasons Why Crypto Market is Surging Today
Several factors are contributing to the current crypto market surge. One major reason behind the rally is the encouraging economic data released recently. The U.S Bureau of Labor Statistics released a report that indicated that the headline Consumer Price Index (CPI) was at 2.7% in December, as it was stable.
The underlying CPI, which excludes food and energy inflation, declined a little to 2.6%. This information created a buzz in the market and led to the rise in the price of Bitcoin to above the $94K point.
The other factor that can affect the tariffs of Trump is the possible effect of the U.S. Supreme Court decision. The decision may also have a further impact on inflation, which may result in a slight decline in the inflation rates.
Besides the macroeconomic statistics, the market is responding to new regulatory trends. The crypto community has been keen on the advancement of a new market structure bill CLARITY Act.
According to a recent report, the U.S economy recorded an addition of only 50,000 jobs, and the rate of unemployment dropped to 4.4%. Although such data is an indicator of a weaker job market, the fall in inflation has been a formidable driver of the crypto rally.
Having the CLARITY Act and the prospective Supreme Court decision on the verge of being completed, the crypto market appears to be ready to expand further.
Institutional Demand and Inflows Boost Crypto Assets
Institutional demand has also contributed to the boom in the crypto market. The inflows of U.S. spot Bitcoin ETFs were impressive on January 13, with the overall inflow amounting to 754 million.
The FBTC of Fidelity was the first to step forward, and the figure of single-day inflows was almost $351m, indicating a serious institutional interest in Bitcoin. There was also strong demand in the Spot Ethereum ETFs, where it received net inflows of $130 million.
Source: Sosovalue dataHealthy inflows were also witnessed with other big crypto assets. Solana and XRP spot ETFs attracted $5.91 million and $12.98 million, respectively.
Bitcoin Surges Past $95,000, Ethereum, XRP See Significant Gains
The Bitcoin price has reached over $95,000 mark, the first time since November, which triggered over half a billion liquidations. The BTC price is at the current stage of 94,890, with a strong upsurge of 4% increase.
Ethereum price has been rising notably, by 7%, surpassing more than $3,300 following a good upward trend. Additionally, the XRP price has surged by 5%, trading at $2.14.
Other major cryptocurrencies, such as BNB, Dogecoin (DOGE), Cardano (ADA), and TRON (TRX), have also gained tremendously. The market trend shows the presence of a very robust bullish trend among several digital assets.
Source: https://coingape.com/trending/why-is-crypto-market-up-today-jan-14/
