Why Crypto Market Is Up Today: What’s Behind The Surge?

Why Is The Crypto Market Up Today: Why is Bitcoin Price Going Up Today

Cryptocurrency Market Cap Nears $4 Trillion Milestone  

The global cryptocurrency market capitalization has seen a 1.80% increase over the past 24 hours, reaching $3.86 trillion. With steady growth, the market is inching closer to the $4 trillion mark. Meanwhile, daily trading volume has surged to an impressive $497 billion, reflecting robust investor activity across the crypto ecosystem.

Bitcoin Surpasses $2 Trillion Market Cap  

Bitcoin has achieved a groundbreaking market capitalization of over $2 trillion, putting it on par with tech giants like Alphabet and Amazon. The futures market is buzzing, with long positions and funding rates climbing by 81%, while daily trading volumes have exceeded $100 billion. Experts predict Bitcoin may hit $120,000 by year-end, a new peak in its historic journey.  

Currently, Bitcoin’s market cap surpasses the GDPs of nations such as Mexico ($1.85 trillion), Australia ($1.8 trillion), and Spain ($1.73 trillion). It trails only slightly behind Russia ($2.18 trillion), Brazil ($2.19 trillion), and Canada ($2.21 trillion). Additionally, Bitcoin’s valuation has overtaken major entities like Saudi Aramco ($1.796 trillion), Silver ($1.791 trillion), Facebook ($1.549 trillion), and Tesla ($1.148 trillion), solidifying its position as the 7th largest asset globally.

Spot Bitcoin ETFs See Record Inflows

Spot Bitcoin ETFs in the U.S. have recorded an extraordinary five-day streak of inflows, amassing over $2 billion. December 4 alone saw $556.82 million pouring into 12 Bitcoin ETFs collectively. BlackRock’s iShares Bitcoin Trust (IBIT) played a significant role in this surge, reaching $50 billion in assets under management in just 228 days, setting a record for institutional adoption.  

This week alone, $1.6 billion has flowed into these ETFs, signaling growing institutional confidence in Bitcoin as a key financial instrument.

Bitcoin Hits $100,000 Amid Regulatory Optimism  

Bitcoin’s price surged past $100,000 recently, fueled by optimism surrounding Republican Donald Trump’s election as U.S. President. Market participants anticipate a more crypto-friendly regulatory framework under his administration, driving bullish sentiment.

SEC Leadership Change Brings Hope to Crypto Industry 

The appointment of Paul Atkins as the new chairman of the U.S. SEC has ignited optimism within the crypto community. Known for his pro-crypto stance, Atkins is expected to steer the commission toward more favorable and clear regulations, a stark contrast to the stringent policies of former chair Gary Gensler.  

Ripple CEO Brad Garlinghouse lauded the move, calling it a pivotal moment for the industry. Garlinghouse described Atkins as “an outstanding choice” who could bring much-needed common sense to the regulatory landscape.

Federal Reserve Chairman Compares Bitcoin to Gold  

Jerome Powell, Chairman of the Federal Reserve, addressed the ongoing comparison between Bitcoin, gold, and the US Dollar at the New York Times Dealbook Summit. Powell highlighted Bitcoin’s speculative nature and closer correlation to gold rather than fiat currencies like the dollar.

Hut 8 Mining Plans Major Expansion  

Hut 8, a leading Bitcoin mining company, has unveiled plans to raise $500 million through stock sales to bolster its Bitcoin reserves, support operations, and manage corporate expenses. Additionally, the company has launched a $250 million stock repurchase program, allowing it to buy back up to 5% of outstanding shares over the next year, showcasing strategic financial management amid Bitcoin’s bullish trend.

Circle Meets Canadian Stablecoin Regulations  

USDC issuer Circle has become the first stablecoin provider to comply with Canada’s new regulatory framework. The company announced on December 4, 2024, that it had received approval from the Ontario Securities Commission (OSC) and Canadian Securities Administrators (CSA) to offer USDC under the Value-Referenced Crypto Asset (VRCA) guidelines.  

This regulatory milestone ensures USDC’s continued availability on compliant Canadian crypto platforms, strengthening its position in the global stablecoin market.  

Ripple CEO Welcomes SEC Leadership Shift  

Ripple CEO Brad Garlinghouse expressed optimism regarding the appointment of Paul Atkins as the new SEC chair. In a statement, Garlinghouse called Atkins “an outstanding choice” and emphasized his potential to bring clarity and common sense to crypto regulations. This leadership change is viewed as a positive turning point for the industry.