Bitcoin has overcome selling resistance
|Market picture
The cryptocurrency market hit record highs in terms of capitalisation, reaching $3.73 trillion at the start of active Asian trading and is sitting at $3.71 trillion at the time of writing. The market digested the overhang of pending selling in Bitcoin near psychologically important levels and continued to move higher.
Bitcoin gained about 3% over the past day, slightly outperforming the broader market. The move into all-time high territory, including this morning's push above $106K, confirms the bullish bias. This is especially important after a three-week consolidation near the $100K level. An acceleration in growth is now likely if unexpected news from the traditional financial markets doesn't stop this rally.
Ethereum is struggling at the $4000 level after quickly recovering from a 15% drop ten days ago. The second largest cryptocurrency has a high chance of overcoming resistance at the round level and coming close to updating all-time highs at $4800.
News background
According to cryptocurrency bank Signum, every $1 billion inflow into the BTC ETF pushes Bitcoin up by 3-6%. Growing institutional interest in the asset sets the stage for a "demand shock" in 2025.
Texas has proposed creating a Bitcoin reserve, and other US states are working on similar proposals. According to the Satoshi Action Fund, at least ten states plan to introduce strategic Bitcoin reserve legislation.
According to a JPMorgan report, publicly traded mining companies have begun implementing a MicroStrategy-style strategy to acquire bitcoins for their balance sheets. The companies are issuing bonds and stocks to fund operating costs and forgoing the sale of mined coins.
MicroStrategy shares will be included in the Nasdaq 100 stock index starting 23 December. That means equity ETFs, including the popular $325 billion Invesco QQQ trust, will automatically start buying them.
Avalanche raised $250 million in a closed token sale ahead of the Avalanche9000 upgrade scheduled for 16 December.
According to a survey conducted by crypto exchange Kraken, 73% of respondents plan to continue investing in crypto assets in 2025. Only 8% of respondents agree that cryptocurrencies are like a financial pyramid scheme.
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