Bitcoin Surges Past $96,000, Ethereum Tops $3,300 as Crypto Rally Gains Steam
Overview
Bitcoin surged past $96,000 and Ethereum crossed $3,300 on Wednesday, January 16, marking a broad rally across cryptocurrencies. The upward momentum was fueled by stable US inflation data (2.7% YoY) easing Federal Reserve rate hike concerns and improved investor risk appetite. Analysts cite spot buying and short position liquidations as key drivers, with Bitcoin facing immediate resistance near $98,000.
Crypto Market Stages Broad Advance
Cryptocurrency markets saw a significant upswing on Wednesday, January 16, with Bitcoin reclaiming the $96,000 level. The flagship digital currency advanced over 4 percent, breaking through multi-week resistance as strong spot buying and increased open interest supported prices.
Ethereum followed suit, gaining more than 7 percent to trade above $3,300. This rise was attributed to robust network activity and high trading volumes. Other altcoins, including Cardano, Stellar, and Dogecoin, registered gains of approximately 9-10 percent.
Macro Factors Boost Digital Assets
Analysts pointed to improving risk appetite and spot accumulation as primary drivers for the rally. On-chain data indicated liquidations of short positions as Bitcoin surpassed key resistance marks. The favorable sentiment was bolstered by the latest US Consumer Price Index (CPI) data, which showed year-on-year inflation holding steady at 2.7 percent.
This stable inflation reading eased concerns about further interest rate hikes from the Federal Reserve. CoinSwitch Markets Desk noted that the data suggests a balanced macroeconomic environment, supportive of risk assets like cryptocurrencies, as prices are neither accelerating nor collapsing.
Technical Outlook and Altcoin Performance
Bitcoin faced profit-taking pressure at higher levels, dipping below $96,000 but maintaining an overall upward trend. At last check, the largest cryptocurrency by market capitalization traded at $94,870, up 3.33 percent, with a 24-hour trading volume of $60.14 billion. The asset had traded between $91,727 and $96,011 in the preceding 24 hours. Bitcoin remains approximately 24 percent below its all-time high.
Ethereum was priced at $3,328.76, a 6.43 percent increase, accompanied by a 24-hour trading volume of $33.4 billion. It fluctuated between $3,118 and $3,357 over the past day. Riya Sehgal, research analyst at Delta Exchange, identified immediate resistance for Bitcoin in the $98,000–$100,000 range and for Ethereum at $3,500.
"A short-term consolidation phase is possible before further gains. Overall sentiment remains bullish, supported by both institutional and retail inflows," Sehgal commented. The broader altcoin market also participated in the rally, with notable gains seen across various digital assets, though a few experienced minor declines.
