Why did the crypto market rise today? CPI slowdown and ETF capital inflows are the key drivers

On January 14, news that inflation data has weakened and regulatory expectations have improved has driven the cryptocurrency market to strengthen overall today. In the past 24 hours, the total market capitalization of cryptocurrencies has increased by approximately 4.5%, reaching $3.35 trillion, with market risk appetite significantly rebounding.

In terms of price performance, Bitcoin temporarily rose about 4.5% intraday, reaching a two-month high of $95,800, then slightly retreated below $95,000 to consolidate. Ethereum performed relatively stronger, with a gain of 6.7%. Meanwhile, mainstream cryptocurrencies such as XRP, BNB, and Solana generally increased by 4% to 5%, and tokens like Dogecoin, Cardano, and Ethena also rebounded to varying degrees. Most of the top 100 cryptocurrencies by market cap closed higher.

This round of rally was first triggered by a technical breakout in Bitcoin. The price of Bitcoin surged quickly and broke above $94,500, breaking the consolidation range since early December 2025, directly triggering a chain reaction. As the price rose rapidly, there was a large-scale short covering in the derivatives market, with over $591 million in forced liquidations of short positions in the past 24 hours, approximately $267 million of which were related to Bitcoin. The passive buying driven by short covering further amplified the upward momentum.

From a macro perspective, the latest U.S. CPI data is an important catalyst. The data shows that overall inflation continues to decline, with core CPI below market expectations. This reinforced market expectations of room for future rate cuts by the Federal Reserve, improved liquidity outlook, and prompted funds to flow back into risk assets including Bitcoin and Ethereum.

On the regulatory front, the U.S. “CLARITY Act” was postponed to a vote in late January, but the market did not react negatively. Investors generally believe that once enacted, the bill will provide a clearer regulatory framework for digital assets, which is conducive to continued institutional capital inflows into the crypto market.

Additionally, institutional funds flowing back through ETF channels also support market sentiment. Data shows that the daily net inflow into spot Bitcoin ETFs reached $753.7 million, significantly higher than previous levels; at the same time, Ethereum ETFs also recorded about $130 million in inflows. Overall, continuous net inflows into ETFs are seen as an important structural support for the current market rebound.