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Here’s why the crypto market is up today; December 21 update

Here's why the crypto market is up today; December 21 update

The cryptocurrency market has slid into a consolidation phase after failing to build on the rally induced by the positive macroeconomic news. The consolidation has seen leading assets, Bitcoin (BTC) and Ethereum (ETH), drop to now familiar zones. 

All in all, the global crypto market capitalization stands at $812.53 billion as the $1 trillion mark remains elusive amid the extended sell-off. Over the last 24 hours, the market cap has registered minor gains of about 0.2% from December 20, according to CoinMarketCap data.

Global crypto market cap one-day chart. Source: CoinMarketCap

Indeed, the minor gains have coincided with both Bitcoin and Ethereum attracting short-term buying activity. In this line, Bitcoin, with a market capitalization of $324.95 million, has reclaimed 40% dominance of the general global crypto market. 

The same trend is also replicated on Ethereum, with the decentralized finance (DeFi) asset accounting for a share of 18.3%, representing a market cap of $148.94 million. 

Key crypto sector events 

The relief buying pressure comes even as the market continues to feel the effects of the FTX crypto exchange collapse. For instance, crypto trading platform, Auros Global revealed that it was granted a “provisional liquidation” to restructure outstanding debt to lenders. The platform ran into trouble in the wake of the FTX contagion. 

At the same time, Voyager Digital, the bankrupt crypto lending platform, will now be acquired by Binance U.S. The deal will see Binance acquire the platform’s assets for $1.022 billion.

Furthermore, cryptocurrency exchange Coinbase released a report highlighting the market’s outlook for 2023. The report projected that the market would exit the prevailing crypto winter and attract institutional investors. With the report coming out, the platform was slammed for omitting crypto projects like Cardano (ADA). 

Meanwhile, the focus remains on Bitcoin and Ethereum price trajectory, considering the two assets are known to dictate the general price movement. 

Bitcoin price analysis

As things stand, Bitcoin is trading at $16,853 with minor gains of less than 0.1% in the last 24 hours, while the weekly chart indicates losses of about 6%. Based on the asset’s recent price movement, analysts have maintained that Bitcoin still has a mountain to climb. 

Bitcoin seven-day price chart. Source: Finbold

Elsewhere Bitcoin technical analysis (TA) indicators are bearish, with a summary of the one-day gauges going for the ‘sell’ sentiment at 15, the result of oscillators indicating ‘sell’ at 2 while moving averages (MA) are hovering around the ‘strong sell’ zone at 13. 

Bitcoin technical analysis. Source: TradingView

Ethereum price analysis

By press time, Ethereum was trading at $1,213, with the price recording minimal movements in the last 24 hours. On the weekly chart, the second-ranked cryptocurrency by market cap has corrected by almost 9%.

Ethereum seven-day price chart. Source: Finbold

Additionally, Ethereum technical analysis remains significantly bearish, with the summary going for ‘sell’ sentiment at 14 while moving averages are for ‘strong sell’ at 13. Oscillators are neutral at 9.

Ethereum technical analysis. Source: TradingView

All in all, despite the market consolidating, investors are betting on positive outcomes for the future. For example, as per Finbold’s report, XRP whales are increasingly accumulating the token as the community awaits the outcome of the Securities Exchange Commission (SEC) case with Ripple

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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