Why Is Crypto Up Today? Bitcoin Nears $96K as DASH Soars 48%

• Bitcoin surged above $96,000 on easing inflation data, triggering short liquidations and lifting overall crypto markets.
• Altcoins led gains as risk appetite returned, with Dash up 48% and total crypto market cap topping $3.25T.
• Rate-cut hopes, regulatory progress, and corporate Bitcoin buying boosted confidence despite mixed global markets.

Crypto markets rose on Wednesday as Bitcoin climbed above $96,000, reaching a two-month high. The rally followed easing U.S. inflation data, regulatory developments, and shifting global risk sentiment. Altcoins outperformed as traders covered short positions and returned to risk assets.

Bitcoin Breaks Higher as Shorts Get Squeezed

Bitcoin rose nearly 5% today, trading around $94,700 after briefly hitting $96,400, its highest price since November. Now, analysts say Bitcoin needs to stay above the $92,000–$94,000 range to keep moving higher. If it fails, the price could move sideways or fall back toward $88,000.

Notably, Bitcoin’s rebound caused over $688 million in liquidations in the past 24 hours, including $292 million in Bitcoin, mostly from traders betting on a price drop. 

Altcoins Lead Gains as Risk Appetite Improves

Interestingly, many altcoins have surged far more than Bitcoin during the rally, showing increased risk appetite across the market. Dash in particular jumped as much as 48% in 24 hours, reaching its highest level since 2021. 

Other tokens, such as Optimism, Internet Computer, Pudgy Penguins, Pepe, and XRP, also recorded strong gains.

At the time of writing, Ethereum is trading at $3,321 after rising 6.1% in the past day. XRP posted a 3.9% gain, reaching $2.2, while Solana rose modestly to $144.

With most altcoins in positive territory, Bitcoin’s share of the total crypto market slipped slightly. Overall crypto market capitalization climbed above $3.25 trillion, up more than 3.2% in the past 24 hours.

Inflation Data and Rate Cut Expectations Support Crypto

Economic data also helped support the rally. U.S. inflation remained steady at 2.7% in December, while core inflation slowed to 2.6%. Recent jobs data also showed hiring is cooling.

These trends have increased expectations that the Federal Reserve could cut interest rates later this year, which usually boosts demand for risk assets like cryptocurrencies.

Market sentiment has improved as well. The Crypto Fear and Greed Index has moved from extreme fear in December to neutral levels this week, suggesting growing confidence without excessive speculation.

Regulation and Corporate Buying Add Confidence

Regulatory developments in the United States also lifted sentiment. Lawmakers released the text of the CLARITY Act ahead of a Senate markup. The bill aims to clarify the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission in overseeing crypto markets.

Corporate accumulation further supported prices. Michael Saylor’s firm, Strategy, disclosed the purchase of 13,627 Bitcoin worth about $1.25 billion to $1.3 billion at an average price near $91,500. Total holdings now stand at 687,410 BTC. Traders often view large corporate purchases as a stabilizing factor during volatile periods.

Meanwhile, Akshat Siddhant, lead quant analyst at Mudrex, said escalating Middle East tensions are driving investors toward alternative assets such as crypto. He added that on-chain data shows short-term holders back in profit, a sign that selling pressure is easing.

Global Markets Show Mixed Signals

Traditional markets sent mixed signals. In the U.S., the Dow fell 0.80%, the S&P 500 slipped 0.19%, and the Nasdaq eased 0.10%, led by losses in financial stocks.

In Asia, markets opened higher. Shanghai rose 0.89%, Shenzhen gained 1.54%, China A50 added 0.56%, and Hong Kong’s Hang Seng climbed 0.35%. Japan’s Nikkei 225 rose 0.9%, while the yen weakened.

Commodities strengthened. Oil prices rose on escalating geopolitical tensions in the Middle East, while gold climbed to fresh highs as investors sought defensive assets. Analysts said these flows reflected caution in global markets, even as crypto assets advanced.

Related: Iran’s Currency Collapse to “Zero”: Why It Matters for Bitcoin