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Crypto Market Cap Surpasses $1 Trillion For The First Time Since November

For the first time since early November, the total market capitalization of the cryptocurrency industry exceeded $1 trillion, according to data from CoinGecko.

On January 14, Bitcoin rose above $21,000 on the expectation that inflation had peaked and bottomed. The largest cryptocurrency rose as much as 7.5% to $21,299 in value. Since November 8, it had not exceeded $20,000 and January 14 was its 11th consecutive day of growth. Ether, the second largest cryptocurrency, rose as much as 9.7%, and other coins like Cardano and Dogecoin also saw significant gains.

Prior to this latest breakout, Bitcoin price had been trapped in a small range between $16,000 and $17,000 for weeks. The upward moves surprised the shorts; according to Coinglass statistics, cryptocurrency short liquidations have topped $100 million in five of the past six days. The highest amount was reached on January 14 and exceeded $296 million.

The increases coincided with consumer price data released last week which indicated a decline in inflation from December levels to January levels. Following this additional cooling, the Federal Reserve is on track to transition to lower interest rate hikes, but it should continue to do so until price pressures show more certain signs of easing. moderation. Risky assets, like the Nasdaq 100 stock index, which rose for six straight days, benefited.

Following the soft CPI print, crypto-assets performed well, indicating that the correlation between crypto and macro is not about to disappear anytime soon, according to chief strategy officer Sean Farrell digital assets at Fundstrat. The price action that has continued this week is undoubtedly positive, and barring forced liquidations by DCG, a financially troubled crypto firm, it is highly likely that the absolute bottom has been reached for prices. cryptocurrencies.

The macro environment, which remains bleak, was overshadowed by falling CPI and news that FTX liquidators had scooped up $5 billion in cash, according to Hayden Hughes, managing director of social trading platform Alpha. Impact. Heading into the next FOMC meeting later this month, markets are moving strongly in the right direction, he added.

(With Bloomberg entries)

This story was published from a news feed with no text edits. Only the title has been changed.

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