The cryptocurrency market is surging today, driven by favourable Consumer Price Index (CPI) data and increasing confidence in a pro-crypto regulatory environment under U.S. President-elect Donald Trump. As of January 16, 2025, the global crypto market capitalization has climbed 3.2% over the past 24 hours, reaching $3.5 trillion. Bitcoin leads the rally, approaching the critical $100,000 mark.

XRP, Solana (SOL), and Dogecoin (DOGE) are among the top-performing assets:

The December U.S. CPI report delivered a mix of relief and optimism:

These figures suggest that while inflationary pressures remain, the Federal Reserve may pause further rate hikes, providing a favorable environment for risk-on assets like cryptocurrencies.

The market witnessed over $347 million in crypto liquidations in the past 24 hours, including $212 million in short positions. Bitcoin alone saw $58.42 million in short liquidations, creating upward pressure on prices as traders closed leveraged positions.

The anticipation of President-elect Trump’s inauguration on January 20 has amplified bullish sentiment. His administration is expected to introduce crypto-friendly policies and possibly establish a U.S. Bitcoin strategic reserve, boosting confidence in the market.

The total cryptocurrency market cap (TOTAL) has reclaimed its 50-day Simple Moving Average (SMA) at $3.37 trillion, signaling strong support. A continued bullish trend could see the market cap target the $3.51 trillion resistance, last tested on December 18, 2024.

While the CPI report and Trump’s inauguration offer a favorable backdrop, traders remain cautious. A resurgence in sell pressure or unexpected macroeconomic developments could challenge the current rally. For now, the crypto market's bullish momentum positions it for potential gains in the days ahead, according to Cointelegraph.