As the crypto market continues its rollercoaster ride in mid-January, Bitcoin briefly touched the psychologically significant $100K mark before settling at $99.9K, up 0.9% in the last 24 hours. This surge comes on the heels of the recently released US Producer Price Index (PPI) data, which showed a modest 0.2% month-on-month increase in December, falling short of economists' expectations. The lower-than-anticipated PPI figures have reignited optimism among crypto enthusiasts, as they suggest a potential easing of inflationary pressures and could influence the Federal Reserve's future monetary policy decisions.
The ripple effects of this macroeconomic data were felt across the broader crypto landscape. Ethereum, the second-largest crypto by market cap, is currently trading at $3.3K, experiencing a slight dip of 1.64% over the past day but maintaining an impressive 20% gain since January 13. This resilience in the face of market volatility underscores the growing maturity of the crypto ecosystem and its increasing correlation with traditional financial markets.
In a surprising turn of events, small-cap cryptos have emerged as the dark horses of today's trading session. Misato led the charge with a staggering 624% increase, followed by Whisp at 407% and JailbreakMe at 240%. These astronomical gains highlight the speculative nature still present in certain corners of the crypto market and serve as a reminder of the potential for both substantial rewards and risks in this dynamic space.
Institutional interest in crypto continues to grow, with Bitcoin and Ethereum ETFs seeing significant inflows. According to Lookonchain, 10 Bitcoin ETFs recorded a net inflow of 7,066 BTC (equivalent to $703.6M), while 9 Ethereum ETFs saw a net inflow of 14,425 ETH ($48.3M). This surge in institutional investment suggests a growing acceptance of cryptos as legitimate financial assets and could pave the way for increased mainstream adoption.
As the crypto community eagerly anticipates President-elect Donald Trump's inauguration on January 20th, speculation is rife about potential policy shifts that could reshape the regulatory landscape. Reports suggest that Trump may issue executive orders related to cryptos shortly after taking office, potentially addressing the "de-banking" issue and reversing the controversial SAB 121 policy. These potential changes have injected a new wave of optimism into the market, with many believing that a more crypto-friendly administration could catalyze the next leg of the bull run.