Market Update 12th December 2024
By Shikha Singh
Bitcoin saw a strong rally on Thursday, rising 3.5% to $100,875, extending its rebound after a brief pullback earlier in the week.
U.S. consumer inflation data that met expectations fueled this surge in risk appetite and increased expectations of a Federal Reserve interest rate cut next week.
Bitcoin’s recovery has pushed it beyond the $90,000-$100,000 trading range seen in recent weeks, recouping its losses from the previous week.
The performance of Bitcoin has outpaced not only stocks and bonds in 2024 but also gold, as highlighted by technical market analyst Peter Brandt.
A key Bitcoin-to-Gold ratio has recently flashed a bullish signal, suggesting a possible long-term upward trend for Bitcoin, which could continue through 2025.
This has further fueled bullish sentiment in the market, especially after a record-setting week for Bitcoin ETF inflows, which has caught the attention of institutional investors.
As Bitcoin gains momentum, altcoins have followed suit. The price of Ethereum (ETH) rose 6.9% to $3,911, while XRP gained 4.1% to $2.4.
Other notable altcoins such as Cardano, Solana, and Polygon surged by 5%-15%. Meme tokens, including Dogecoin (DOGE), added 6.4%.
Despite some volatility, Ripple’s XRP token has rebounded after recent losses, while other major altcoins like Solana, Toncoin, and Shiba Inu also saw notable gains.
However, not all coins performed well—PEPE, for example, dropped 7% from its recent all-time high. Overall, the total crypto market cap has surged by $150 billion in just 24 hours, reaching $3.65 trillion. This rally indicates a broader market optimism, with Bitcoin’s bullish performance continuing to drive the market’s growth, particularly in the wake of a potential change in U.S. interest rates.
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