Why did avalanche's price go up today? Crypto market cap flirts with $1T amid rally

Avalanche ( AVAX-USD ) tokens shot up as much as 8% in Tuesday's trading as sentiment across the cryptocurrency market continues to improve from depressed levels at the end of 2022. The global crypto market cap , tracked by CoinMarketCap, honed in on $1T as short liquidations gained steam, edging up 0.1% to $996.7B as of 4:16 p.m. ET, though still remains well below the roughly $3T November 2021 peak. AVAX outpaced other major tokens during the session, rising 4.4% at the time of writing. By comparison, bitcoin ( BTC-USD ) edged up 0.9% to $21.32K, while ethereum ( ETH-USD ) inched down 0.1% to $1.58K. Despite the boring intraday price action, both tokens are up at least 26% since the start of 2023 as market participants cheer softer inflation data and thus a potentially less hawkish Federal Reserve ahead. In light of those positive macroeconomic catalysts and the subsequent shift in sentiment, traders were betting long for four straight days in the bitcoin ( BTC-USD ) futures market based on the long-short ratio, Bradley Duke, co-CEO at crypto exchange-traded product provider ETC Group, said in an emailed statement Monday. Last week, (Jan. 11) AVAX spiked on Amazon Web Services alliance to swell blockchain adoption .