On January 14, Bitcoin alone increased to over $21,000, with Ethereum, Cardano, and Dogecoin also registering significant gains.
Crypto Short Liquidations Exceed $100 Million
The recent breakout in crypto prices has surprised shorts, with cryptocurrency short liquidations exceeding $100 million in five of the last six days. The highest amount was reached on January 14 at over $296 million.
Macroeconomic Environment and Crypto Prices
The declining Consumer Price Index (CPI) and the recovery of $5 billion in cash assets by FTX liquidators contributed to the positive market direction for crypto. Experts believe the correlation between macroeconomics and crypto prices will not soon disappear. The Federal Reserve's plan to transition to smaller interest-rate hikes also suggests a positive outlook for risky assets such as the Nasdaq 100 stock index.
Expectations for the Upcoming FOMC Meeting
The markets are moving in the right direction going into the upcoming Federal Open Market Committee (FOMC) meeting later this month, according to Hayden Hughes, CEO of social-trading platform Alpha Impact.
He believes the declining CPI and the recovery of cash assets by FTX liquidators have overshadowed the gloomy macroeconomic environment. Experts are optimistic that the absolute bottom for cryptocurrency pricing has been reached and that the market will continue to see positive growth.