In the wake of Bitcoin's impressive rally surpassing the $66,000 milestone, the cryptocurrency market witnessed a surge in short liquidations, totaling over $58 million within a mere 24-hour period. This surge in liquidations was predominantly fueled by the escalation in Bitcoin's value, which not only caused a ripple effect across the wider cryptocurrency market but also coincided with the release of crucial U.S. inflation data.

The rally in Bitcoin's price came hot on the heels of Wednesday's release of U.S. inflation figures, revealing a notable uptick in core CPI, with a month-on-month increase of 0.3% and a year-on-year surge of 3.6%. Despite these numbers marking the lowest 12-month core inflation reading since April 2021 and the smallest monthly increase since December, they hinted at a moderation in inflationary pressures, sparking optimism among investors.

In tandem with Bitcoin's surge, the broader cryptocurrency market experienced over $155 million in liquidations, with a significant portion — approximately $113 million — stemming from short positions, as per data from Coinglass. Bitcoin's current trading value stands at approximately $66,300, marking an impressive 6% surge within the past 24 hours, as reported by The Block’s price page.

The enthusiasm surrounding Bitcoin's rally was further underscored by the substantial inflow witnessed in Bitcoin spot ETFs, which recorded their most significant daily influx since early May. Wednesday saw a staggering net inflow exceeding $302 million into Bitcoin spot ETFs, representing the highest influx since May 3rd.

Leading this influx was Fidelity’s FBTC, attracting $131 million, closely followed by the Bitwise Bitcoin ETF (BITB) with $86 million, according to data from SoSoValue. Additionally, Ark Invest and 21Shares’ ARKB garnered $39 million, adding to the fervor surrounding Bitcoin investments.

Bitcoin dominance witnessed a slight uptick to 51.9% over the past day, while ether dominance experienced a marginal decline to 14.4%, according to Coingecko data. Simultaneously, the global cryptocurrency market cap surged by 5.5% within the past 24 hours, now standing at an impressive $2.51 trillion, according to The Block's Prices Page.

Furthermore, the GM 30 Index, representing a curated selection of the top 30 cryptocurrencies, surged by 5.45% to 133.49 during the same period, reflecting the widespread optimism and bullish sentiment prevailing in the cryptocurrency market amidst Bitcoin's remarkable rally and the reassuring inflation data.