TL;DR (70 words total)
- Crypto market cap added over $110B as bitcoin hit about $96,500 and hovered near $95,000, with ETH above $3,300 and IP up 28%.
- Softer U.S. inflation data showed core CPI up 0.2% in December and 2.6% year over year, easing Fed pressure and supporting a risk-on tone.
- ETF inflows and liquidations amplified the move: Bitcoin ETFs drew $753.73M, Ether ETFs $129.99M, and short liquidations exceeded $593.7M out of $686.58M total.
Crypto markets swung higher in a fast risk-on burst as bitcoin sprinted to around $96,500 before cooling near $95,000. Its market cap climbed to just under $1.9 trillion and dominance held at 56.9%. Majors joined in: Ether rose above $3,300, Cardano gained over 8%, and Stellar added 9%. The hotter end of the tape was louder, with IP up 28% and PEPE up 14%, alongside ICP up 14%, PUMP up 12%, ENA up 11%, and ARB up 10%. Cumulative market cap added over $110 billion. The whole complex moved like a coordinated repricing of risk.
CPI, ETF flows, and forced buying sharpened the move
Another strand of the rally ran through macro data. Bitcoin pushed past $95,000 on Wednesday after U.S. inflation came in softer than expected, easing pressure on the Federal Reserve as it weighs its next rate move. Core CPI rose 0.2% in December and 2.6% year over year, with headline inflation showing the same increase and also undershooting forecasts. Ether traded above $3,300 as total crypto market cap was cited at $3.27 trillion. Dash and Story gained 30% or more in the surge. Lower inflation prints gave traders room to lean into risk without feeling reckless.
Institutional flow data added a second engine. U.S. spot Bitcoin ETFs recorded $753.73 million in daily net inflows on Tuesday, one of the biggest single-day tallies since Oct. 7, just before a historic sell-off and more than $19 billion in liquidations. Spot Ether ETFs also flipped back to inflows after three straight days of outflows, posting $129.99 million. The shift reversed the recent redemption trend and lifted cumulative ETF assets. Inflow burst signaled institutional confidence as easing inflation revived hopes of rate cuts. When ETFs turn from drag to tailwind, spot traders tend to follow.
Leverage then did the rest. In the past 24 hours, more than $593.7 million in short positions were liquidated, helping push prices higher as traders were forced to buy back exposure. Total liquidations reached $686.58 million, with shorts making up over 86%, while long liquidations were $92.86 million. Bitcoin shorts accounted for $294.69 million and Ether shorts for $214.32 million. The squeeze was fairly evenly split between them. When short-covering becomes the flow, rallies can look orderly even while risk is rising underneath. With bitcoin near $95,000, the next sessions will test whether demand stays.
