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Crypto Market Sees 2.5% Gain in Value as Investors React Positively to CPI Report and ETF Filing
The crypto market has witnessed a significant surge in value over the past 24 hours, with its total valuation reaching $3.57 trillion after a 2.5% increase. The rise in prices has been led by Bitcoin, which has broken the $100,000 psychological barrier, currently trading at $101,380.
Other major cryptocurrencies such as XRP, Solana, and Dogecoin have also seen notable gains of 8.5%, 7%, and 3.8% respectively.
The sudden increase in value can be attributed to a combination of factors that have instilled confidence among investors.
One key factor contributing to this growth is the latest Consumer Price Index (CPI) report released by the U.S. government. The figures, which revealed a 0.4% increase, slightly above expectations, have allayed concerns over inflation rates and provided a positive outlook for the market.
The filing of a new Litecoin ETF has also sparked excitement among investors. The news comes as an update from the U.S. Securities and Exchange Commission (SEC), indicating that the chances of approval are now higher. This development is seen as a significant step forward in mainstream adoption, allowing institutional investors to participate in the cryptocurrency market.
In addition, Bitcoin exchange-traded funds (ETFs) have witnessed strong inflows, with a staggering $626.1 million and $755 million worth of investments made on January 16th and 17th respectively. Notably, BlackRock contributed $527.9 million to this surge, demonstrating the growing interest in BTC.
The market has also seen a significant rise in liquidations within the derivatives market, with over $326 million worth of positions closed due to traders betting against the market being forced to liquidate their assets. This has further fueled the upward momentum.
Bitcoin’s ability to hold above the crucial psychological barrier of $100,000 is viewed as a key factor contributing to this growth. Many analysts believe that if buying pressure remains consistent, the cryptocurrency could potentially reach $105,000 in the near future.
The current market trend demonstrates investors’ renewed confidence in the market’s potential and growing appetite for digital assets.
Source: coinpedia.org
