Bitcoin rose on Saturday above $21,000 for the first time in over two months. The whole crypto market is in the green. Market capitalization increased by 35 billion USD in the past 24 hours.
Bitcoin, the world's biggest and best-known cryptocurrency, rose 4.6% to $20,853 at 01:01 GMT on Saturday, adding $922 to its previous close.
The cryptocurrency is up 26.4% from the year's low of $16,496 on January 1.
What's driving BTC's rally?
The main catalyst for the recovery was the positive CPI report released by the Bureau of Labor Statistics (BLS), which showed overall inflation for all urban consumers down 0.1%.
This is the biggest drop in inflation since April 2020. Analysts hope that the positive data will prompt the Fed to ease monetary policy, reducing interest rate hikes at the Federal Open Market Committee (FOMC) meeting on February 1.
Accordingly, starting from the $16,943 mark on January 8, Bitcoin slowly inched up as the market prepared to welcome the US CPI news on January 12.
In the past, the times when the price broke the cloud, there was a strong upward trend. Bitcoin's nearest target is the $22,500 - $25,000 zone.
The total Liquidations in the last 12 hours
In the last 12 hours, more than 500 million USD of derivative orders were liquidated, with a short-order ratio of nearly 93%.
The value of cryptocurrencies liquidated in the last 12 hours, data from Coinglass.
This can be considered one of the reasons for the market to growth today.
According to data from CoinScreener, one of the top traders on Binance made 2.8 million after 1 year of trading, but lost 3 million with two short positions.
In addition, many other coins also increased strongly such as SOL, APT, DOGE, GALA... causing short-selling traders to liquidate their positions.
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