Why Is Bitcoin and Cryptocurrency Surging Today? Here Are the Latest Data!

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• The global crypto market cap surged over 6% today, surpassing $1.75 trillion, contributing to a 30% increase in the total crypto market cap in the last 24 hours.
• According to Coinglass data, today witnessed a significant liquidation of large short positions, totaling over $130 million.
• COINOTAG also reported a surprising increase in the Bitcoin funding rate to 66%, indicating a willingness among bulls to hold their positions.

Bitcoin price is gaining strength above $45,000: What do the current cryptocurrency data indicate?

Why Is Bitcoin Price Rising Today?

The global crypto market cap surged over 6% today, surpassing $1.75 trillion, contributing to a 30% increase in the total crypto market cap in the last 24 hours. Bitcoin dominance rose back to 50.94% after an impressive 8% rally in the last day. Meanwhile, Ethereum (ETH) price increased by 7%, reaching $2,428, gaining momentum towards $3,000.

The broader crypto market rally began on January 1st with a positive sentiment increase towards a potential approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) around January 10. As predicted by COINOTAG on December 30, despite concerns of a complete wipeout of Bitcoin and Ethereum open interest (OI) during the year-end expiration of $11 billion, the crypto market started 2024 with a bullish rally. Bitcoin and Ethereum futures and options OI slowly began to increase.

There were over $160 million in liquidations in the last 24 hours in the crypto market. According to Coinglass data, today witnessed significant liquidation of large short positions, totaling over $130 million. In the last 24 hours, more than 46,000 traders were liquidated, and the largest single liquidation order on Binance’s BTCUSDT was valued at $10.16 million. The broader crypto market turned “green” today due to over $200 million in short position liquidations.

Moreover, the total Bitcoin futures open interest across all exchanges increased by nearly 10%, reaching $20 billion. BTC OI on CME and Binance increased by 7.76% and 14.20%, respectively. Additionally, BTC option data saw 70% calls dominating the trading volume in the last 24 hours.

Total Ethereum futures OI surpassed $8.24 billion, showing a 9% increase in the last 24 hours. ETH OI on three major futures crypto exchanges, Binance, Bybit, and OKX, increased between 9% and 11%. Furthermore, ETH option data saw 75% calls dominating the trading volume in the last 24 hours.

COINOTAG also reported a surprising increase in the Bitcoin funding rate to 66%, indicating a willingness among bulls to hold their positions. According to the Matrixport report, Bitcoin mining companies are inclined to limit supply around upcoming halving cycles expected in April 2024.

The Coinbase Premium Gap started to increase again on January 2nd, indicating strong Bitcoin buying pressure on Coinbase. The BTC price suddenly started to move as traders and investors began placing new bets.

Crypto Market Rally: Bitcoin and Altcoin Prices

BTC price increased by 8% in the last 24 hours, currently trading at $45,550. The 24-hour low and high values are $42,547 and $45,899, respectively. Additionally, the trading volume increased by 92% in the last 24 hours, indicating growing interest among traders.

While Ethereum increased by 7%, SOL surged by 12% despite increased activity on the network. Other altcoins, including XRP, ADA, AVAX, DOGE, DOT, and MATIC, rose between 3% and 7% in the last 24 hours in a generally improved environment.