It’s another positive day in the world of cryptocurrenciesthe overall market capitalization of this asset class having reached a new historic high. As of 3:30 p.m. ET, the overall crypto market was up 5.1% over the past 24 hours to reach a total valuation of over $3.25 trillion.
Unsurprisingly, the best tokens Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO: ETH)And Dogecoin (CRYPTO:DOGE) are among the main drivers of this development. Given that these three major tokens combined represent almost three-quarters of the value of the entire crypto market, one would expect to see a market-relevant development for these three digital assets today.
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As of 3:30 p.m. ET, Bitcoin, Ethereum, and Dogecoin were up 3.7%, 8.8%, and 2.1%, respectively. Each of these tokens had already made moves higher than 3% during intraday trading.
Let’s take a look at the key drivers behind today’s move and what could move these top chips higher from here on.
Investors will be watching to see if Bitcoin can reach the important $100,000 threshold over the coming days. It now trades around $98,000 per token, and new all-time highs have become the norm following President-elect Donald Trump’s election victory.
The latest catalyst on the Bitcoin front that appears to be prompting a number of crypto traders and investors to step up their bullish bets on the world’s largest cryptocurrency is a report that Trump may seek to elect a “coin czar”. crypto” in a move that would further legitimize the sector. This, along with previous reports that Trump is seeking to build a strategic Bitcoin reserve, is prompting investors to place broad bets that Bitcoin will likely only go higher from here. For now, this consensus appears to be based on some key fundamental factors that are exacerbated by outsized bets on derivatives and leverage, causing momentum to skyrocket.
Ethereum’s recently approved spot exchange-traded funds (ETFs) have positioned this crypto as one of the biggest potential beneficiaries of any type of strategic crypto reserve. Many of the same catalysts that are driving Bitcoin higher, including supply and demand dislocations, are likely to be present with Ethereum, if one-off ETF inflows continue to generate continued buying pressure over time and various deflationary measures put in place by the Ethereum team come to fruition. Ethereum is also surging forward in this post-election world, although this token remains about 30% off its all-time high seen at the height of the last cycle.