Bitcoin price surged to $100,000 today in a significant market rally fueled by positive U.S. inflation data that exceeded expectations. The rally also saw Ethereum and Dogecoin prices rise over 6% in response to the news. This surge in cryptocurrency prices comes amidst growing market hopes for Federal Reserve rate cuts, which have been driving volatility in the crypto sector.
The market rally was detailed in a report by Watcher Guru, which highlighted the gains made by major cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin. Bitcoin saw a 5.03% increase, reaching $100,927.86, while Ethereum jumped 6.42% to $3,828.77, and Dogecoin rose by 6.38% to $0.4121. The surge in prices was attributed to November’s Consumer Price Index meeting market expectations, sparking a broad crypto surge across major tokens.
The surge in Bitcoin price triggered mass liquidations of short positions worth $154 million, with another $400 million in shorts potentially facing liquidation if prices reach $104,000. This chain reaction could push values to a new all-time high for Bitcoin, as derivatives traders scrambled to reposition on major trading platforms to capitalize on the momentum.
Top gainers in the market included smaller tokens like Peanut the Squirrel (PNUT), Virtuals Protocol (VIRTUAL), and Sui (SUI), which saw significant percentage gains in the last 24 hours. Analysts like Michaël van de Poppe and venturefounder have made predictions for Bitcoin and Ethereum, with van de Poppe emphasizing the importance of Bitcoin holding key support levels to maintain upward momentum, while venturefounder predicts Ethereum reaching $4,900 in the near term.
The broader market impact of the crypto surge was reflected in the total crypto market value expanding by 5.02% to reach $3.61 trillion. Stock markets also showed strength, with the Nasdaq hitting a new high of 20,034.89, gaining 1.77%. Technology stocks moved in tandem with crypto prices, indicating a positive correlation between the two markets.
Looking ahead, fresh inflation data has pushed the probability of a Federal Reserve rate cut to 98.6%, up from 88.9%. Bitcoin price indicators suggest sustained buying pressure, while Ethereum and Dogecoin movements point towards growing altcoin market strength. The cryptocurrency volatility index indicates continued upward momentum, with a new all-time high for Bitcoin potentially within reach if current support levels hold steady.