The crypto market pushed higher as regulatory optimism in the United States fueled a renewed wave of institutional inflows. Bitcoin climbed to $97,323, posting a 3.3% gain over the past 24 hours, while Ethereum advanced 4.7% to reach $3,366. Combined trading volume surged to $68.5 billion, reflecting strong participation from both spot and derivatives markets. Total crypto market capitalization rose 3.22% to $3.24 trillion, with Bitcoin maintaining a dominant 58.8% share.
Institutional demand was clearly visible in ETF flows. Spot Bitcoin ETFs recorded a substantial $753.8 million in net inflows on January 13, marking one of the strongest single-day additions in recent months. Ethereum ETFs also attracted fresh capital, with $130 million added during the same session. These inflows underscore growing confidence from regulated capital allocators amid improving legal clarity.
The primary catalyst behind the rally is progress on the U.S. Senate’s Digital Asset Market Clarity Act (DAMCA). The draft legislation proposes clear jurisdictional boundaries, assigning spot market oversight to the CFTC while maintaining SEC authority over digital asset securities. Crucially for markets, the bill introduces a “safe harbor” provision that exempts ETF-linked assets such as Bitcoin and Ethereum from being classified as securities, removing a long-standing institutional concern.
DAMCA also addresses stablecoin structure under Title IV, prohibiting yield-bearing stablecoins issued by centralized entities. This provision favors traditional banking models while preserving decentralized staking mechanisms, striking a balance between financial stability and on-chain innovation. The upcoming January 15 Banking Committee markup is widely viewed as a near-term volatility trigger, as final language could influence capital allocation decisions across crypto and traditional finance.
From a market perspective, Bitcoin is approaching critical resistance near $97,000, with the $100,000 psychological level acting as the next major hurdle. Support is firmly established between $91,000 and $92,000. Ethereum continues to hold above its 50-day moving average near $3,139, with a break above $3,447 opening the door toward the $3,670 zone.
Overall, the combination of strong ETF inflows, improving regulatory clarity, and constructive technical momentum suggests that institutional accumulation remains the dominant force driving the current crypto market expansion.
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