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Why is the crypto market up today?

Why is the crypto market up today?

Amid its struggles after the FTX collapse, the cryptocurrency market is recording modest gains today, pushed by the similarly modest price increases recorded by its largest assets by market capitalization – Bitcoin (BTC) and Ethereum (ETH).

Indeed, the total crypto market cap at press time stands at $811.31 billion, which demonstrates an increase of this indicator by 0.38% across the previous 24 hours, as per CoinMarketCap data retrieved by Finbold on December 20.

Total 1-month cryptocurrency market cap. Source: CoinMarketCap

That said, the current crypto market cap is still a far cry from its peak of November 9, 2021, when it had commanded a wealth worth $2.92 trillion, its present state representing a staggering decline of 72.23% since then, as well as of 62.97% since the year’s turn.

The increases in the global crypto market cap arrive as internet personalities like the former kickboxer Andrew Tate express their enthusiasm about the space and the spend-to-earn decentralized finance (DeFi) protocol Fluidity Money launching on the Ethereum mainnet.

On top of that, the report has come out that the number of dead coins had dropped over 70% in 2022 and that 92% of high net worth clients are seeking access to crypto, as Finbold earlier reported. Furthermore, the global market cap inflows are also the direct result of Bitcoin and Ethereum recording gains.

Bitcoin price analysis

Indeed, Bitcoin is notching daily gains of 0.51%, changing hands at the price of $16,827 and recovering from the weekly loss of 3.56%, while its market cap stands at $323.73 billion, maintaining its position as the largest cryptocurrency by this indicator.

Bitcoin 24-hour price chart. Source: Finbold

In the meantime, the technical analysis (TA) indicators for Bitcoin on 1-day gauges are still slightly bearish, as their summary suggests ‘sell’ at 15, the result of oscillators indicating ‘buy’ at 4 and moving averages (MA) in the ‘strong sell’ zone at 13, as per TradingView data.

Ethereum price analysis

At the same time, Ethereum has increased its price by 2.42% to the current $1,213, as it is recovering from the 5.80% drop across the week, with a market cap of $148.42 billion, making it the second-largest crypto asset by this indicator, preceded only by Bitcoin.

Ethereum 24-hour price chart. Source: Finbold

In terms of the 1-day TA, gauges for Ethereum are also in the bearish zone, indicating ‘sell’ at 14, as summarized by oscillators suggesting ‘buy’ at 4 and MAs in the ‘strong sell’ area at 13 – similarly as the flagship digital asset, although strongly outperforming Bitcoin in the second half of 2022.

It is also worth noting that the market capitalization inflows could change based on the movements of these two leading digital assets as both bulls and bears continue their daily fight over which gets to control the cryptocurrency market.

Whether their movements remain bullish will depend on the developments in the crypto sector, such as the possible staked ETH withdrawals, whales stockpiling Bitcoin, the Ripple v. Securities and Exchange Commission case outcome, as well as the macroeconomic landscape, including the Federal Reserve’s monetary policy. 

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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