The global crypto market cap reached $3.5 trillion on January 6 after a 3.2% increase in 24 hours, driven by Bitcoin's rally toward $100,000 and strong performances from cryptocurrencies like XRP, Solana, and Dogecoin. This recovery follows the January 15 Consumer Price Index (CPI) report showing a 0.4% increase in December, slightly above expectations but still indicating inflation persists above the Federal Reserve's target. Consequently, market participants are adjusting their expectations for interest rate cuts. Notably, over $347 million in crypto positions were liquidated, primarily involving short positions, indicating a shift in market sentiment that caught many traders off-guard. The total market capitalization has regained support from the 50-day simple moving average, setting the stage for potential further gains, particularly with the upcoming political changes expected to foster a crypto-friendly regulatory environment under Trump's administration.

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