The total crypto market capitalization has seen a significant gain of 3.2% over the last 24 hours, reaching an impressive figure of $3.71 trillion on December 16th.
Trading Volume Sees a 27% Jump
In addition to the increase in market capitalization, the overall trading volume has also seen a substantial jump of 27% on the day, with a total trading volume of $162 billion. This surge in demand-side pressure is a clear indication that investors are pouring money into cryptocurrencies.
Bitcoin and Ethereum Prices Surge
Among the top-performing cryptocurrencies, Bitcoin (BTC) has risen by 3.5% over the last 24 hours to trade at an impressive price of $81,587, just below its all-time high of $106,488 set earlier in the day on December 16th.
The second-largest cryptocurrency, Ethereum (ETH), has also seen a significant gain, rising by 3.25% to trade around $3,976 at the time of publication.
Prospects of Bitcoin Becoming US Reserve Asset
One of the key factors driving the bullishness in the crypto market today is the prospects of Bitcoin becoming a US reserve asset. According to Jack Mallers, founder and CEO of Strike, US President-elect Donald Trump’s recent comment about his intentions to build a strategic Bitcoin reserve and do ‘something great’ with crypto has created optimism among investors.
Mallers believes that Trump could issue an executive order on ‘day one’ of his second term to designate Bitcoin a reserve asset status, which would be a significant development for the cryptocurrency industry. This move would not only increase demand for Bitcoin but also provide legitimacy to the cryptocurrency market as a whole.
Institutional Demand for Spot ETFs Remains High
The crypto market’s ongoing gains are also aligned with the huge capital flows into spot exchange-traded (ETF) funds. According to Farside Investors, approximately $2.16 billion flowed into US-based spot Bitcoin ETFs over the Dec 9-13 week, while spot Ethereum ETFs have attracted a total of $1.4 worth of capital over the last 14 days.
These inflows are a clear indication that institutional and retail investors are increasingly interested in cryptocurrencies, particularly Ether. The steady capital inflow into Bitcoin and Ethereum ETFs is a testament to the growing popularity of these cryptocurrencies among investors.
MicroStrategy’s Continued Buying Spree
One of the most notable institutional buyers of Bitcoin is MicroStrategy, which now has a Bitcoin reserve worth over $44 billion. On December 4th, MicroStrategy CEO Michael Saylor hinted at further Bitcoin buying, indicating that the company remains committed to its strategy of accumulating Bitcoin as a store of value.
Bitcoin Mining Giant Riot Platforms Enters the Fray
In addition to MicroStrategy’s continued buying spree, another significant player in the crypto industry has entered the fray. Riot Platforms, a leading Bitcoin mining giant, announced last Friday that it had acquired 5,117 Bitcoin at an average price of around $99,669 per BTC.
Crypto Market Cap Nears $4 Trillion
Data from Cointelegraph Markets Pro and TradingView show that the total market capitalization of all cryptocurrencies, represented by the symbol TOTAL, has rallied more than 34% since November 11th. This price action has recorded a series of higher highs and higher lows, leading to the appearance of an ascending parallel channel pattern on the daily chart.
Technical Analysis
The ascending parallel channel pattern is a bullish trend indicator that suggests a continuation of the move higher if the price breaks above the upper boundary of the channel at $3.9 trillion. A breakdown below the lower boundary of the channel at $3.57 trillion could indicate a possible trend change.
Conclusion
The crypto market has seen significant gains in the last 24 hours, with the total market capitalization reaching an impressive figure of $3.71 trillion. The surge in demand-side pressure, driven by institutional and retail investors, is a clear indication that cryptocurrencies are gaining mainstream acceptance.
While there are risks associated with investing in cryptocurrencies, the prospects of Bitcoin becoming a US reserve asset and the growing popularity of Ethereum among investors make this market an exciting space to watch. As always, it’s essential for investors to conduct their own research before making any investment decisions.
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