Crypto Market News Today: Reasons Behind Current Price Movements

As of December 16th, the total crypto market capitalization has surged by 3.2% over the last 24 hours, settling at a substantial $3.71 trillion. Simultaneously, the overall trading volume has jumped by an impressive 27%, further indicating intense demand-side pressure.

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Bitcoin and Ethereum’s Price Hike

Bitcoin (BTC): With a rise of 3.5% over the last 24 hours, Bitcoin has reached a value of $81,587. Its price remains just below the all-time high of $106,488 achieved during early Asian trading hours on December 16th.
Ethereum (ETH): The second-largest cryptocurrency by market capitalization climbed 3.25% to trade around $3,976 at the time of publication.

Key Factors Driving the Crypto Market Uptrend

Prospects of Bitcoin Becoming a US Reserve Asset

One significant factor driving the crypto market’s bullishness is United States President-elect Donald Trump’s recent statement regarding his intention to establish a strategic Bitcoin reserve. Jack Mallers, founder and CEO of Strike, suggests that an executive order could be issued on ‘day one’ of Trump’s second term to designate Bitcoin as a reserve asset status.

"It wouldn’t be the size and scale of 1 million coins, but it would be a significant position," Mallers stated.

This move is also complemented by the possibility of additional Bitcoin reserve bills at the state level. Satoshi Action Fund CEO Dennis Porter anticipates that more states will introduce their own Bitcoin reserve bill in the future.

"We’re going to see more and more of these bills come. At least 10, in my opinion," said Porter.

Interest Rate Reduction Expected

The US Federal Reserve is predicted to reduce the benchmark borrowing cost by 25 basis points to a range of 4.25% to 4.5%. This marks a total interest rate reduction of 1% since September 18th.

Institutional Demand for Spot ETFs Remains High

The crypto market’s ongoing gains are in line with massive capital inflows into spot exchange-traded (ETF) funds. According to Farside Investors, approximately $2.16 billion flowed into US-based spot Bitcoin ETFs over the December 9-13 week.

Spot Bitcoin ETF flows table:

| Date | Volume |
| — | — |
| Dec 9 – Dec 12 | $1.83B |
| Dec 11 | $0.34B |
| Total | $2.16B |

Similarly, spot Ethereum ETFs have experienced two weeks of continuous inflows, with no single day of net outflow since November 21st.

Spot Ethereum ETF cumulative flows:

| Date | Volume |
| — | — |
| Nov 12 – Dec 13 | $1.4B |
| Cumulative Flows (Dec 13) | $1.98B |

The steady capital inflow into Bitcoin and Ethereum ETFs signals a growing institutional and retail interest in Ether.

MicroStrategy Continues to Buy Bitcoin

Institutional demand for Bitcoin is further demonstrated by continued buying from MicroStrategy, which now holds over $44 billion worth of Bitcoin. On December 4th, MicroStrategy CEO Michael Saylor hinted at additional Bitcoin purchases.

Crypto Market Performance and Chart Analysis

Data from Cointelegraph Markets Pro and TradingView show that the total market capitalization (TOTAL) has rallied more than 34% since November 11th.

An ascending parallel channel pattern is observed on the daily chart, indicating a bullish trend. A breakout above the upper boundary of this channel at $3.9 trillion could signal a continuation of the move higher. If the price holds above the lower boundary of the channel at $3.57 trillion, it may move toward the middle boundary and then to the upper boundary.

Conclusion

The crypto market’s uptrend is driven by several key factors, including expectations of Bitcoin reserve status, interest rate reduction, and institutional demand for spot ETFs. The price must hold above the immediate support provided by the lower boundary of the channel at $3.57 trillion to sustain the uptrend.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.