Cryptocurrencies experienced a rally, fueled by a cooling inflation scenario that has heightened optimism regarding the Federal Reserve’s potential path toward monetary easing. Amid rising tensions between the White House and the Federal Reserve, non-sovereign assets such as cryptocurrencies experienced a surge in demand. The overall crypto market capitalization stands at $3.22 trillion, experiencing a surge of over 3 percent overnight. This increase is attributed to robust inflows into Bitcoin Spot ETF products in the U.S. and a significant short squeeze affecting the market. On Tuesday morning, data revealed that headline annual inflation held steady at 2.7 percent, aligning with expectations. The core inflation, anticipated to rise to 2.7 percent from 2.6 percent in November, surprisingly held steady. Month-on-month inflation came in at 0.3 percent, aligning with consensus estimates. However, the core component surprised analysts by posting 0.2 percent, falling short of the 0.3 percent anticipated by the markets.
The positive shift in sentiment within the cryptocurrency market was also evident in the CMC Fear and Greed Index. The index has shown improvement, moving further into the “neutral” territory with a rise to 52 from 41 just a day prior and 49 from the previous week. Data revealed that crypto liquidations – the forced closure of a trader’s leveraged position by an exchange or lending protocol due to insufficient funds (margin or collateral) to cover potential losses – reached $686 million in the past 24 hours. This figure includes long positions totaling $96 million and short positions amounting to $590 million. The significant short squeeze propelled the upward momentum. On Tuesday, Bitcoin Spot ETF products in the U.S. saw impressive net inflows of $754 million, a significant increase compared to the $117 million in net inflows recorded on Monday. Fidelity Wise Origin Bitcoin Fund has seen impressive inflows, reaching a total of $351 million. BITB recorded inflows totaling $159 million. The market leader, iShares Bitcoin Trust ETF, saw inflows totaling $126 million. Bitcoin Spot ETF products experienced their strongest inflows since October.
On Tuesday, Ethereum Spot ETF products in the U.S. saw impressive net inflows of $130 million, a significant increase from the $5 million recorded on Monday. The iShares Ethereum Trust ETF has seen impressive net inflows amounting to $53 million. The overall crypto market capitalization stands at $3.22 trillion, reflecting a 3.01 percent increase overnight. The 24-hour trading volume has surged by 18.6 percent overnight, reaching a total of $157 billion. Nearly 80 of the top 100 cryptocurrencies are experiencing overnight gains exceeding one percent, while four are facing overnight losses greater than one percent. Bitcoin has surged 3.4 percent over the last 24 hours, currently trading at $95,087.77. The current price sits approximately 25 percent beneath the all-time high of $126,198.07, which was reached on October 7, 2025. The original cryptocurrency has surged by 3.4 percent over the last week. The trading activity over the past 24 hours fluctuated between $96,011.62 and $91,750.14. Bitcoin currently holds a commanding 58.7 percent share of the total crypto market. Ethereum experienced a notable increase of 5.2 percent overnight, now trading at $3,294.68. The prominent alternative cryptocurrency is currently trading at a level that is 33 percent lower than its all-time high of $4,953.73, which was achieved on August 25, 2025. The trading activity over the past 24 hours fluctuated between $3,357.75 and $3,127.32. Ether’s dominance in the crypto market stands at approximately 12.3 percent.
Bitcoin holds the 8th position, while Ethereum is placed at 35th in the global asset rankings based on market capitalization, according to reports. 4th ranked XRP has surged over 3 percent overnight, currently trading at $2.12, which is approximately 45 percent lower than its all-time high of $3.84 reached on January 4, 2018. BNB, currently holding the 5th rank, saw a nearly 3 percent increase overnight, pushing its price up to $933.91. BNB is currently trading at a level that is 32 percent lower than its all-time high of $1,370.55, which was reached on October 13, 2025. The price of 6th ranked Solana surged by 1.8 percent overnight, reaching $144.49. SOL is currently trading approximately 51 percent lower than its all-time high of $294.33, which was reached on January 19, 2025. TRON, now positioned 8th overall, saw a 1.1 percent increase overnight and is currently trading at $0.3017. The current trading price sits at 32 percent lower than the cryptocurrency’s all-time high of $0.4407, which was reached on December 4, 2024. Dogecoin, currently holding the 9th rank, surged by 5.3 percent overnight and is now trading at $0.1466. DOGE is currently trading at a staggering 80 percent below its previous peak of $0.7376, which was reached on May 8, 2021. Cardano, currently holding the 10th rank, surged by 5.9 percent overnight, now trading at $0.4152. ADA is presently trading 87 percent beneath its all-time high of $3.10 reached on September 2, 2021.
56th ranked Story, a Layer 1 blockchain aimed at underpinning intellectual property on the internet, surged overnight, leading the top 100 cryptocurrencies with an impressive gain of 26.2 percent. 40th ranked Internet Computer, a cryptocurrency associated with the AI & Big data sector, experienced overnight gains of 16.1 percent. The surge propelled the AI & Big Data sector to an impressive overnight increase of over 5 percent in market capitalization. 42nd ranked MemeCore emerged as the leader in recovering from overnight losses among the top 100 cryptocurrencies, despite experiencing a decline of over 4 percent. Canton, currently ranked 23rd, experienced a decline of 2.9 percent.