Why Crypto Market is Up Today? XRP, Bitcoin, and Institutional Interest Driving the Surge?

2 hours ago 6

The post Why Crypto Market is Up Today? XRP, Bitcoin, and Institutional Interest Driving the Surge? appeared first on Coinpedia Fintech News

The total crypto market cap gained around 2 percent in the past 24 hours to hover about $3.63 trillion on Thursday, January 16, during the early European session. With Bitcoin (BTC) correlation with the traditional stock indexes declining by the day, ahead of the much-anticipated inauguration of Donald Trump, the total crypto market cap has surpassed Apple Inc. (NASDAQ: AAPL) in valuation.

Bitcoin price rallied over 3 percent in the past 24 hours to trade above $100k before retracing towards $99.4k at the time of this writing. Ripple Labs’ XRP led the altcoin industry in palpable gains ahead of the much-anticipated altseason.

Major Factors that Contributed to Crypto Market Rebound Today

Crypto Short Squeeze

After Bitcoin price opened Monday in a dragonfly Doji candlestick, the bullish sentiment has gained the upper hand. In the past 24 hours, more than $346 million was liquidated from the crypto-leveraged market, with the majority involving short traders.

With more sellers turning to buyers, the emergence of a robust short-squeeze has propelled the crypto bullish sentiment.

Renewed Interest from Whale Investors

The cryptocurrency industry has registered renewed interest from institutional and retail traders after a robust rebound in the last two weeks. According to market data from Coinhsares, digital asset investment products saw inflows of $48m last week, led by Bitcoin, Ethereum, and XRP.

Meanwhile, the US spot Bitcoin ETFs registered a net cash inflow of $755 million on Wednesday, thus negating the losses recorded in the previous four days. Additionally, the US spot Ether ETFs registered a net cash inflow of $59 million, thus ending a dry streak of four days.

Positive Crypto Regulations in the US Amid Cooling Inflation

The cryptocurrency market has gradually gained bullish momentum catalyzed by high-impact news from the United States. Ahead of the much-anticipated inauguration of pro-crypto POTUS Donald Trump, the US inflation data shows a cooling effect, thus raising optimism of a potential rate cut later this month.

Meanwhile, the traction of the strategic Bitcoin reserve at the state and federal levels has gained significant momentum. Already, Texas State Senator Charles Schwertner has proposed a Bill to establish a Strategic Bitcoin Reserve soon. Additionally, Representative Cody Maynard has proposed a Strategic Bitcoin Reserve Bill for the state of Oklahoma.