The crypto market rallied on Wednesday, with total capitalization rising 4.5% to $3.35 trillion. Bitcoin led the move, climbing above the long-standing $94,500 resistance and briefly touching $96000 before stabilizing lower. The breakout triggered more than $591 million in short liquidations across the market, sharply shifting trader sentiment and pushing the crypto fear and greed index into neutral territory.
The surge was driven mainly by cooler U.S. inflation data, which strengthened expectations of future Federal Reserve rate cuts and boosted demand for risk assets. Additional support came from strong institutional activity, as spot Bitcoin ETFs attracted nearly $754 million in net inflows in a single day, while Ethereum and other crypto ETFs also recorded positive flows.
