Bitcoin returns to the $100,000 mark

After suffering strong selling pressure that sent the price tumbling to a low of $89,300 on January 13, 2024, the lowest level since mid-November 2024, Bitcoin quickly regained momentum. In just 72 hours, BTC recovered steadily and crossed the $100,500 threshold at dawn on January 16, 2024, marking an impressive return of the entire market.

Bitcoin is currently trading at $99,400, up 4.14% in the last 24 hours and more than 11% during the week of January 9-16. The rally has pushed Bitcoin closer to its all-time high of $108,000 set in December 2024.

Altcoins also benefited from this momentum with an average gain of 5-8%. In particular, there are altcoins that have risen more than 10%, such as S, FARTCOIN, ALGO, VIRTUAL, LDO, WIF, ENA...

On January 13, when Bitcoin fell to the $89,300 zone, the market saw more than $800 million liquidated, largely from Long orders. In the last 24 hours, although Bitcoin has risen sharply and rapidly, just over $350 million has been liquidated across the market, including $225 million from Short orders and $129 million from Long orders.

The volume of liquidations was significantly lower this time, in part because investors still expect prices to continue to rise, so the volume of short selling in the market is not as much.

The main reason driving Bitcoin's recovery is the new positive economic data released in the U.S., including the Consumer Price Index (CPI) and the recently released Manufacturing Price Index (PPI) are both lower than expected.

The CPI is up only 0.4%has generated positivity and reinforced expectations that the Fed may soon cut interest rates. This alleviates concerns about interest rates continuing to rise or remain high for long periods of time, thereby spurring investors to seek returns in riskier assets, including crypto.

In addition, with just four days to go, Trump officially takes office as the new US president, which is also positively influencing the crypto market.

According to the Reuters news site, the SEC's new leadership is expected to implement crypto policy reforms in the near future, with plans to provide clearer guidance on classifying crypto assets as securities. This is expected to untangle the legal problems that exchanges like Coinbase are facing.

Santiment, an on-chain data analytics platform, noted that the positive macroeconomic backdrop has supported Bitcoin's rise over the past 24 hours. US-related news, including that the Trump administration may suspend non-fraud-related crypto lawsuits and ease regulations, has fueled positive sentiment.

Other assets such as stocks and gold also rose sharply. According to CME FedWatch, the futures market now estimates a 30 percent chance that the Fed will cut interest rates in March 2025. Lowering interest rates will often benefit crypto and spur new price hikes.

Data from the CME exchange also showed that BTC futures for the February to April 2025 futures rose between 2% and 3% as of January 15, signaling a more positive medium-term price outlook for Bitcoin.