Why is the Crypto Market Up Today?

Over the past day, I’ve noticed a modest increase in the total market capitalization of cryptocurrencies, moving from approximately $3.42 trillion to $3.45 trillion. This seems to be an extension of an upward trend that began at the start of the year.

So far this year, the value of the cryptocurrency market has grown by more than $200 billion, and currently, the price of bitcoin is at $99,500 after falling to $92,000 on December 30 and subsequently recovering.

The second most valuable digital currency, Ethereum‘s ether, has bounced back from approximately $3,100 to more than $3,600 at this moment. It’s important to mention that crypto analyst Ben Lilly proposes that the price increase might be due to the increasing worth of Ethena, a platform that bets against ETH as part of its risk management strategy.

Today’s rise in the cryptocurrency market is largely believed to be due to hopes for a more favorable regulatory climate under President-elect Donald Trump. Expected policy changes, such as setting up a strategic Bitcoin reserve and appointing Paul Atkins as SEC head, have increased investor trust.

Moreover, the approval of Bitcoin spot ETFs at the start of last year has broadened accessibility to digital currencies, thereby fueling the market’s continued growth.

At the same moment, significant corporations are increasing their investments in Bitcoin, with MicroStrategy planning to acquire an extra $2 billion by selling preferred stocks, which they will use to buy more Bitcoin in 2021.

As an analyst, I find myself reflecting on the recent announcement by Metaplanet, a notable Japanese investment firm likened to Japan’s version of MicroStrategy. They have expressed their intention to invest in approximately 10,000 Bitcoins, which currently equates to nearly a billion dollars in value.

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2025-01-06 16:03