The Macro Shift
The primary driver of today's price action is the December CPI report, which came in at 2.7%. This cooling inflation has given the market confidence that the Federal Reserve will finally ease interest rates. As a result, capital is flowing from the US Dollar into "Hard Assets" like Bitcoin and Gold.
The Short Squeeze
According to CoinGlass, over $290 Million in Bitcoin short positions were liquidated in just 24 hours. When bears are forced to buy back their positions to cover losses, it creates a "feedback loop" that pushes the price even higher.
Institutional Support
Charles Edwards of Capriole Fund noted today that retail investors aren't the ones driving this recovery—it's Institutional Dry Powder. With the CLARITY Act providing a regulatory roadmap, big banks are no longer asking "if" they should buy, but "how much."
What's Next?
With Fogo ($FOGO ) listing on Binance tomorrow and Bitcoin eyeing the psychological $100,000 barrier, the rest of January is looking incredibly bullish.
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