Market Update 25th November 2024
By Shikha Singh
The cryptocurrency market is surging, with Bitcoin (BTC) nearing $100,000 after breaking its previous all-time high. Bitcoin’s price hit nearly $99,000, bolstered by growing institutional inflows into spot Bitcoin ETFs, which now boast over $100 billion in assets under management. Bitcoin’s dominance has reached 58%, and the total market cap has surpassed $3.43 trillion, driven by both Bitcoin’s rise and strong altcoin performance.
Ethereum (ETH) has rebounded to $3,360, fueled by increased trading activity and inflows into centralized exchanges. This surge reflects a broader shift as investors diversify beyond Bitcoin. A significant rally in altcoins complements Ethereum’s growth. XRP, for instance, has surged to $1.40, its highest level since May 2021, as optimism around Ripple’s legal battle with the SEC grows. Cardano (ADA) has also jumped to $0.86, its highest since April 2022, while other altcoins like Stellar (XLM), Hedera (HBAR), and Algorand (ALGO) have posted strong weekly gains of 40%-110%.
While Bitcoin and Ethereum dominate, smaller altcoins are also seeing strong gains. Bitcoin Cash (BCH) surged 17% to over $500, while Bitcoin SV (BSV) rose 10.3% to $76. However, some other altcoins, like ADA and meme coins (PEPE, SHIB, and DOGE), are facing slight pullbacks, down over 5% on the day.
The derivatives market is heating up, with about 29,000 Bitcoin options contracts expiring today, worth around $2.84 billion. A massive $9 billion Bitcoin options expiry event will occur next week, potentially adding volatility. Ethereum options are also expiring, bringing the total combined expiry to about $3.4 billion. Institutional interest and the launch of new spot Bitcoin ETF options continue to support the bullish market sentiment.
Overall market sentiment is extremely optimistic, with Bitcoin’s move toward $100,000 boosting the entire crypto market. Ethereum and altcoins are benefiting from the broader rally, signaling the start of a potential altcoin season. Despite some caution about elevated leverage in the derivatives market, the outlook remains positive. As institutional and retail interest grows, the market could continue its bullish trend, with altcoins potentially leading the next phase of the rally.
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