According to CoinGecko data, the total market capitalization of the cryptocurrency industry surpassed $1 trillion for the first time since early November.
On January 14, Bitcoin surpassed $21,000 on speculation that inflation had peaked and struck a bottom. The largest cryptocurrency gained in value by 7.5% to $21,299 USD.
It hadn’t gone above $20,000 since November 8, and January 14 was its 11th consecutive day of gain. Ether, the second-largest cryptocurrency, increased by 9.7%, while smaller coins such as Cardano and Dogecoin also saw big rises.
Bitcoin’s price had been stuck in a narrow range between $16,000 and $17,000 for weeks before to this most recent outburst.
The rising volatility has caught shorts off surprise; according to Coinglass statistics, cryptocurrency short liquidations have exceeded $100 million in five of the last six days. The greatest amount was reached on January 14 and exceeded $296 million.
The rises corresponded with consumer pricing statistics released last week, which showed a drop in inflation from December to January levels.
Risky assets have profited from this, such as the Nasdaq 100 stock index, which has risen for six days in a row.
Following the mild CPI print, cryptoassets performed well, demonstrating that the correlation between crypto and macro is not going away anytime soon, according to Sean Farrell, Fundstrat’s head of digital asset strategy.
According to Hayden Hughes, chief executive officer of social trading platform Alpha Impact, the macroeconomic environment, which is still bleak, has been masked by the decreasing CPI and news that the FTX liquidators had recovered $5 billion in cash assets. The markets are going aggressively in the correct way as the FOMC meets later this month, he noted.
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