Daily Market Update: Crypto Market Gains as Stock Futures Drop Wednesday
TLDR
Bitcoin climbed above $95,000 with a 4% gain while Ethereum surged 7% to reach $3,330 on Wednesday
US inflation data came in below expectations, boosting crypto prices and reinforcing rate cut expectations
Crypto futures saw $688 million in liquidations with short sellers losing $603 million as prices rallied
Stock market futures declined with Dow down 0.3% and S&P 500 down 0.2% ahead of bank earnings
Federal Reserve faced political pressure as Justice Department investigation created market uncertainty
Cryptocurrency markets pushed higher on Wednesday as Bitcoin broke through the $95,000 level for the first time in a week. The move came as US inflation data showed prices rising less than economists expected.
Bitcoin gained more than 4% over 24 hours to trade above $95,000. Ethereum performed even better with a gain exceeding 7% to reach around $3,330. Other major cryptocurrencies followed the upward trend.
Solana, Cardano, XRP and BNB all posted gains as high as 9% during Wednesday’s trading session. The broad-based rally showed strong demand across the cryptocurrency market.
The December inflation report came in below forecasts. This data reinforced trader expectations that the Federal Reserve will continue lowering interest rates in 2026. Lower inflation typically creates better conditions for risk assets like cryptocurrencies.
Improved liquidity conditions and reduced pressure on bond yields have historically supported crypto price movements. These factors encouraged investors to buy digital assets on Wednesday.
Political Pressure on Federal Reserve Grows
Political developments also played a role in market movements. The Justice Department served grand jury subpoenas on the Federal Reserve earlier in the week. This action created uncertainty about the central bank’s independence.
The dollar weakened following news of the investigation. A weaker dollar often boosts appeal for cryptocurrencies that operate outside traditional government control.
President Trump escalated his criticism of Federal Reserve Chair Jerome Powell on Tuesday. His comments added to concerns about political interference with the central bank. Business leaders and some Republican lawmakers have pushed back against the Justice Department’s investigation.
Crypto Traders Face Major Liquidations
The price surge caught many cryptocurrency traders off guard. Over $688 million in crypto futures positions were liquidated in the past 24 hours according to data from Coinglass.
Short sellers bore the brunt of the losses. Traders betting on falling prices accounted for approximately $603 million of total liquidations. Nearly 122,000 traders had positions closed as markets moved against them.
The largest single liquidation was a $12.9 million ETHUSDT position on Binance. The heavy liquidations show many traders had positioned for price declines before the inflation data release.
Stock market futures moved in the opposite direction on Wednesday morning. Dow futures fell about 0.3% while S&P 500 and Nasdaq 100 futures both declined 0.2%.
The pullback followed a down session on Tuesday when the Dow led major indexes lower from record highs. Investors prepared for earnings reports from Bank of America, Wells Fargo and Citigroup.
JPMorgan Chase reported quarterly results on Tuesday that disappointed market participants. The bank’s shares fell following the earnings release. Investors also monitored the Supreme Court for a potential ruling on President Trump’s tariff authority.
Trump proposed capping credit card interest rates at 10% for one year. This policy suggestion put pressure on financial stocks. Visa and Mastercard shares both closed lower on Tuesday.
Asian equity markets reached record highs on Wednesday. Silver prices broke above $90 per ounce for the first time. Gold traded near all-time highs as investors sought alternative assets.
The post Daily Market Update: Crypto Market Gains as Stock Futures Drop Wednesday appeared first on Blockonomi.
Filed under: Bitcoin - @ January 14, 2026 12:17 pm