Why is Crypto Market Going Up Today: Latest Crypto & Bitcoin News

Why is The Crypto Market Up Today: Why is $BTC Price Going Up Today

Crypto Market Capitalization Rises by 1.14%, Signals Bullish Momentum

The global cryptocurrency market capitalization has surged by 1.14% over the past 24 hours, reaching $3.43 trillion as of January 6. This upward trend coincides with the growing trading volume, which has climbed 9.45% to $95.72 billion, reflecting heightened demand-side pressure.

Cryptocurrency Market Sentiment Analysis: Fear & Greed Index

The Fear & Greed Index, a popular sentiment analysis tool for the cryptocurrency market, currently indicates a sentiment of Extreme Greed with a score of 76. This suggests heightened bullish behavior among market participants, often fueled by optimism and confidence.

Historically, the index shows a progression in positive sentiment. Yesterday's score was 72 (Greed), while last week's score of 65 also reflected Greed. Last month's sentiment score was 75, closely mirroring today's extreme sentiment level.

Bull Flag Pattern Suggests Extended Uptrend

From a technical analysis perspective, the total cryptocurrency market capitalization (TOTAL) is showing signs of a bull flag pattern on the daily chart. This pattern indicates the possibility of an extended upward trend in the near future.

After hitting a peak of $3.73 trillion on December 17, the market experienced a sharp correction, dropping to $3.05 trillion before rebounding to its current level of $3.44 trillion. The formation of the bull flag suggests that further gains could be on the horizon.

Key Resistance Level and Potential Breakout

The critical resistance level for the market lies at the upper boundary of the bull flag, around $3.62 trillion. A strong weekly close above this level could confirm a breakout, potentially pushing the total market capitalization toward the $4 trillion milestone.

Source: TradingView

Market Participants Expect Steady Fed Interest Rates

In a related development, market participants are assigning a 90.90% probability that the U.S. Federal Reserve will maintain the benchmark interest rate within the 4.25% to 4.5% range during its upcoming FOMC meeting on January 29.

Source: CME Group

Crypto Markets Rally Ahead of Trump’s Second Inauguration

Anticipation is building as the cryptocurrency markets gain momentum ahead of Donald Trump’s second inauguration as U.S. President on January 20. Investors are optimistic about the potential pro-crypto stance of the incoming administration and its impact on the industry.

Ripple CEO Optimistic About U.S. Crypto Landscape

Ripple CEO Brad Garlinghouse has expressed confidence in the changing regulatory environment, stating that “75% of Ripple’s open roles are now U.S.-based.” He attributes this shift to the expected pro-crypto policies of the upcoming Republican administration and Donald Trump’s favorable rhetoric toward digital assets