Bitcoin holding ground above $100k
AS investors return from the holiday season, cryptocurrency markets are showing renewed vigour.
Bitcoin, the market cap leader, has gained roughly 10% in the past week. After trading in a range between $92,000 and $98,000 for much of the past seven days, it leaped overnight to start trading around $101,000 this morning.
The surge pushed its market capitalisation above the $2 trillion mark, putting it within striking distance of Alphabet’s $2.4 trillion valuation.
The rally coincides with significant inflows into US Bitcoin exchange-traded funds, which recorded their highest daily intake yesterday since late November. Among altcoins, Hedera (HBAR) and Algorand (ALGO) have also joined the upswing - up 7% and 3% respectively.
Attention now turns to two key events to kick off the year: the US non-farm payrolls data on Friday, expected to provide insight into the health of the labour market and influence Federal Reserve rate expectations, and Donald Trump’s inauguration on 20 January.
These moments could each set the tone for crypto, along with other risk-on investments, and broader markets as 2025 unfolds.
In the Markets
Total crypto market cap
$3.59 trillion (+1.43%)
What Bitcoin did yesterday
Daily high $102,512 | Daily low $98,688
Bitcoin market capitalisation
$2.01 trillion (+2.5%)
Bitcoin 24-hour trading volume
$48.22 billion (+70%)
SP500
+0.55%
Fear and Greed Index
Greed
Source: Coinmarketcap
The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.
Bitcoin Relative Strength Index (RSI) (14)
62.8
Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.
Post Script…
Cautionary Notes
It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
