Bitcoin spikes above $21,000: is the crypto bear market over ?

The rally has inflicted pain on the bears who have liquidated hundreds of millions of dollars in short positions. According to Coinglass, these totaled around $125 million for Jan. 14 alone, with the period from Jan. 11 onward bringing nearly $300 million of short liquidations.

Second-largest token Ether
ETHE,
+0.36%
surged as much as 9.7%, and others such as Cardano
ADAUSD,
-0.17%
and Dogecoin
DOGEUSD,
-0.30%
also notched gains. Solana s
SOLUSD,
-0.53%
soared as much as 35%.

The gains pushed the total market capitalization of the cryptocurrency market over the $1 trillion mark for the first time since November, according to data from CoinGecko.

After dropping from just above $67,500 to a low near $15,000, a 77 % loss from the peak to the low, Bitcoin has spent about 13 months going mostly sideways, until buyers appeared again this week.

See also: What’s behind Bitcoin’s big rally, and why crypto traders bet the worst Is over

The current surge in bitcoin’s value comes after the U.S. Labor Department issued data showing that inflation is moderating with consumer prices up by 6.5% in December, down from 7.1% in November.

“Cryptoassets performed well following the soft CPI print, suggesting that crypto’s correlation to macro is not going away anytime soon,” Sean Farrell, head of digital asset strategy at Fundstrat told Bloomberg.

“This week’s follow-through in price action is certainly encouraging,” and barring any forced liquidations from troubled crypto company DCG, “there is a high probability that the absolute bottom is in for crypto prices.”