$28 Billion Flows Into Crypto Markets In 24 Hours As Bulls Push Prices Higher

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The cryptocurrency market entered the second week of 2023, witnessing bullish momentum with bulls holding the upper hand over bears. The bullish momentum has seen major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) recover to key levels while a section of altcoins appear to be decoupling, recording an instant spike in value.

Indeed, the market is under buying pressure, with the global capitalization of the crypto sector standing at $853.57 billion as of press time on January 9. In the last 24 hours, the market registered an additional $28.71 billion compared to the $824.86 billion recorded on January 8.

One-day capitalization chart of the global crypto market. Source: CoinMarketCap

As it stands, Bitcoin dominates the market at 39%, followed by Ethereum at 19%. Notably, although the market has rallied, the focus is on recovering the $1 trillion capitalization seen towards the end of 2022. In this case, investors are hoping the market will build on the positive start. of 2023.

Bitcoin recovers $17,000

Even though altcoins such as Cardano (ADA) take center stage; Bitcoin is trading in the green zone, reclaiming the $17,000 spot after weeks of consolidation below the level. There remains a general anticipation that Bitcoin is likely to maintain the bullish momentum in the coming days, banking on possible positive macro news.

At press time, the flagship cryptocurrency was changing hands at $17,249, after rising almost 2% in the past 24 hours.

One-day Bitcoin price chart. Source: Finbold

Additionally, the Bitcoin market capitalization stands at $332.33 billion, representing an inflow of approximately $6.27 billion in the previous 24 hours. This comes as crypto trading expert and analyst Michal van de Poppe predicted that the chances of asset breakouts have increased.

Meanwhile, Ethereum also recovered the $1,300 level, trading at $1,320 with daily gains of nearly 5%.

Why the Crypto Market is Rallying

The ongoing gains in the crypto market are mostly attributed to the positive macroeconomic factors that suggest slowing inflation and, therefore, influence the Federal Reserve’s monetary policy. Notably, the current momentum emerged following the positive employment data for December 2022.

There is also optimism about a slowdown in global inflation as China opens its international borders, which has boosted investor confidence.

However, the market is likely to experience some volatility in the coming days ahead of the Consumer Price Index (CPI) and Inflation releases. However, inflation is expected to be positive and help Bitcoin maintain the bullish momentum.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

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