WASHINGTON (dpa-AFX) - Cryptocurrencies rallied and Bitcoin breached the psychological level of $100,000 again amidst renewed anticipation ahead of the inauguration of Donald Trump's second presidency. Mixed inflation readings from the U.S. and large inflows to Bitcoin spot ETF products in the U.S on Wednesday bolstered market sentiment.
Hopes of a favorable regulatory regime strengthened as markets braced for the inauguration of Donald Trump's second term as President of the United States on January 20. Creation of a Strategic Bitcoin Reserve, favorable modifications to crypto accounting policies, approvals for altcoin ETF products and pro-crypto executive orders are some of the initiatives that markets are eyeing.
Consumer price inflation update from the U.S. Bureau of Labor Statistics on Wednesday also supported crypto market momentum. Annual headline inflation's increase to 2.9 percent from 2.7 percent in November was in line with market expectations. The core component thereof which was seen steady at 3.3 percent unexpectedly declined to 3.2 percent. Inflation, on a month-on-month basis which was seen steady at 0.3 percent unexpectedly edged up to 0.4 percent. The core component thereof however edged down to 0.2 percent in line with expectations.
Bitcoin Spot ETF products in the U.S. recorded inflows of $755 million as compared with outflows of $210 million a day earlier. Net inflows were last recorded on January 7. Fidelity Wise Origin Bitcoin Fund (FBTC) topped with near-record inflows of $463 million. Ether Spot ETF products in the U.S. recorded inflows of $60 million on Wednesday versus $1 million a day earlier.
Overall crypto market capitalization has increased 4 percent overnight to $3.48 trillion. Only 1 of the top 100 cryptocurrencies is trading with overnight loss of more than a percent.
Bullish momentum reverberated across the crypto spectrum, with memes rallying 8.3 percent, AI & Big data surging 9 percent and DeFi adding 8.2 percent in market capitalization during the past 24 hours. Trading volume over the 24-hour period also increased 28 percent to $158 billion.
Bitcoin gained more than 2 percent overnight to trade at $99,048.13, around 9 percent below the all-time high. BTC has added 6.7 percent in the past week. The leading cryptocurrency traded between $100,781.59 and $96,814.03 in the past 24 hours.
Ethereum rallied 3.9 percent in the past 24 hours to trade at $3,335.35 around 32 percent below the previous peak recorded in November 2021. Weekly gains are 1.7 percent. Ether traded between $3,473.10 and $3,276.93 in the past 24 hours.
Bitcoin is now ranked 7th and Ethereum 27th in the global ranking of all assets as per market capitalization published by companiesmarketcap.com.
3rd ranked XRP (XRP) jumped 18.8 percent overnight to trade at $3.32, around 14 percent below the all-time high touched in January 2018. The cryptocurrency's weekly gains are close to 45 percent. XRP's rally to a seven-year high came despite the SEC filing an appeal in court against a ruling in its case with Ripple Labs that was only a partial victory for the SEC.
The price of 5th ranked Solana (SOL) surged 12.8 percent overnight. With weekly gains of 11.5 percent, SOL is currently trading at $211.06, around 20 percent below its record high on November 23, 2024.
6th ranked BNB (BNB) rallied 2.8 percent overnight and 2.1 percent in the past week at its current trading price of $710.76. BNB is currently trading 10 percent below the all-time high touched on December 4, 2024.
7th ranked Dogecoin (DOGE) also rallied 7.6 percent overnight to trade at $0.381. Having leaped 16.3 percent in the past week, DOGE is trading 48 percent below the previous peak scaled in May 2021.
9th ranked Cardano (ADA) gained 8.2 percent overnight to trade at $1.09. ADA is currently trading 65 percent below the record high touched in September 2021.
10th ranked TRON (TRX) added 6.2 percent overnight to trade at $ 0.2387. TRX has however slipped 2.3 percent in the past week. The trading price is 46 percent below the cryptocurrency's all-time high recorded on December 4, 2024.
53rd ranked Virtuals Protocol (VIRTUAL) topped overnight gains with a surge of 21.5 percent. 35th ranked Algorand (ALGO) followed with gains of 21.2 percent. 16th ranked Hedera (HBAR) and 47th ranked Ethena (ENA) also added close to 20 percent in the past 24 hours.
65th ranked Movement (MOVE) topped overnight losses with a decline of close to 2 percent.
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