The cryptocurrency market has recorded a growth of around 2% in the past 24 hours, reaching around $3.63 trillion on Thursday, January 16, in early trading in Europe. Notably, with the correlation between Bitcoin (BTC) and traditional stock indices decreasing, before Donald Trump took office, the total market capitalization of the cryptocurrency market has surpassed the value of Apple Inc. (NASDAQ: AAPL).
The price of Bit has increased by more than 3% in the past 24 hours to surpass the $100,000 threshold, before adjusting down to $99,400 at the time of writing. Ripple Labs' XRP is leading the altcoin sector with significant gains, just before the much-anticipated "altseason" begins.
Several key factors have contributed to the recovery of the cryptocurrency market today, including a Bit short squeeze. After the Bit price opened the trading day in a Doji dragonfly candlestick pattern, the upward price trend has gained significant momentum. In the past 24 hours, over $346 million has been liquidated from the cryptocurrency market, with most of it coming from short-term investors switching to buying, leading to a powerful short squeeze that has fueled the bullish sentiment.
The renewed interest from large investors has also contributed significantly. The cryptocurrency industry has seen new interest from both institutional and individual traders following the strong recovery over the past two weeks. Digital asset investment products have attracted around $48 million in investment just last week, focused on Bit, Ethereum, and XRP. Meanwhile, the Bit ETF fund in the United States recorded a net inflow of $755 million on Wednesday, offsetting the losses in the previous four days.
Additionally, positive cryptocurrency regulations in the United States have boosted the market. Before Donald Trump took office, US inflation data showed a declining trend, raising hopes of a rate cut at the end of this month. In response to this development, there have been several proposals to establish Strategic Bit Reserve Funds at the state and federal levels.
The cryptocurrency market has been gaining bullish momentum, driven by high-impact news from the United States. Optimism is growing, especially as lawmakers propose Strategic Bit Reserve Fund drafts, laying the foundation for significant changes in this non-traditional finance sector.
