Positive economic data and increasing institutional participation have propelled Bitcoin’s price beyond $100,000, resulting in gains for the crypto market. Moreover, the sector’s market cap has collectively risen by around 4.92% lately as of this publication.
These developments follow a period of subdued market sentiment and reflect growing optimism. Data from economic reports and insights from leading market analysts have shed light on the factors driving this recovery.
What you'll learn 👉
Inflation Data Stabilizes Sentiment
According to economic updates shared by X user Chichi (@ChiCharts) on December 11, the latest U.S. Consumer Price Index (CPI) data aligned with expectations. The year-over-year CPI growth stood at 2.7%, matching forecasts and marking a slight increase from 2.6% in the previous report.
Similarly, Core CPI, which excludes food and energy prices, remained unchanged at 3.3%, consistent with projections. Month-over-month figures also aligned with expectations, with both CPI and Core CPI rising by 0.3%.
The release of this data contributed to a sense of stability, mitigating fears of unanticipated inflationary pressures.
Positive developments were not limited to the U.S.; Canadian reports showed a reduction in inflation, further supporting market optimism as noted by YouTuber Crypto Foxxy. These factors provided a strong foundation for the recent rally, as traders became more confident in the macroeconomic environment.
ETF Inflows Highlight Growing Institutional Support
Another major factor behind the rally was substantial institutional inflows into crypto exchange-traded funds (ETFs).
Data from Lookonchain (@lookonchain) revealed that on December 11, Bitcoin ETFs saw a net inflow of 5,459 BTC, equivalent to $538.45 million. BlackRock led the inflows, adding 3,071 BTC, increasing its holdings to 530,832 BTC, valued at $52.36 billion.
Ethereum ETFs also experienced strong activity, with a net inflow of 81,254 ETH worth $302.91 million. Fidelity was a key contributor, purchasing 63,500 ETH, raising its total holdings to 406,250 ETH, valued at $1.51 billion.
These substantial inflows signal sustained institutional interest in cryptocurrencies, reflecting a growing acceptance of Bitcoin and Ethereum as valuable assets within diversified portfolios.
Read also: How Much Will 25,000 Stellar (XLM) Tokens Be Worth at Peak of the Bull Run?
Bitcoin’s Market Recovery Gains Momentum
The rally pushed Bitcoin’s price to $100,890, supported by a daily trading volume of $109 billion, according to CoinGecko at press time. Analyst Crypto Foxxy explored this recovery in a YouTube analysis, noting Bitcoin’s rise to $101,000 following a market-wide gain in a day.
Foxxy’s analysis highlighted key drivers, including the CPI data and institutional inflows, while addressing earlier concerns like Microsoft’s non-involvement in Bitcoin investments and potential blockchain vulnerabilities.
Amid recent dips, analysts predict BTC price could reach $110k by Christmas or early next year. This sustained recovery highlights the combined impact of economic stability and institutional confidence in steering the market upward.
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