What’s Driving the Crypto Market Up Today? Bitcoin's Surge and New Year Anticipation

As the crypto market gains momentum, Bitcoin surged to $90,000 during the Asian trading session on December 29, marking a 2% increase. This upswing came after a quiet holiday period where BTC missed the anticipated Santa rally that propelled U.S. equities to record highs.

Key Takeaways

Bitcoin surged to $90,000 during the Asian trading session, marking a 2% increase.
The rise in Bitcoin's price was primarily driven by a liquidity hunt for leveraged shorts.
Speculators are becoming more bullish on the futures market, with expectations for a New Year rally.
Major altcoins like Canton, Midnight, and Solana have begun to see gains.
The altcoin market shows signs of renewed strength, breaking key resistance despite lagging behind Bitcoin.

In summary, the recent fluctuations in the crypto market, particularly Bitcoin’s rise and the potential for a New Year rally, have created a vibrant atmosphere for both Bitcoin and altcoin traders.

What's Driving the Crypto Market Up Today? Bitcoin's Surge and New Year Anticipation

According to data from CoinGlass, this recent surge was primarily fueled by a liquidity hunt aimed at leveraged short positions above $90,000. In the past few days, Bitcoin (BTC) has fluctuated within a range of $85,000 and $90,000, with recent price movements influenced by liquidity searches.

Bitcoin

Source: CoinGlass

With some liquidity available at $90.9K, there may be a potential for further upward movement in the near future.

Expectations for a New Year Rally and Altcoin Gains

The reasons behind these movements could extend beyond simple liquidity grabs. Insights from CryptoQuant reveal that speculators in the futures market are increasingly placing bullish bets, potentially preparing for a New Year rally. The Bitcoin Funding Rate, which reflects overall market sentiment, has seen a noticeable increase, highlighting a growing bullish outlook for a possible breakout.

Why is crypto up today

Source: CryptoQuant

Sebastian Bea, Chief Investment Officer at ReserveOne Inc., noted that Monday's increase seems to be significantly influenced by short-term retail traders increasing their positions in the futures market.

The altcoin market has also seen some minor gains following Bitcoin's upward movement. Notably, the top daily performers included Canton (CC), Midnight (NIGHT), and Solana (SOL), with CC rising by 10%, NIGHT by 9.4%, and SOL by 3%.

There has been a trend of significant accumulation in altcoins, particularly with Chainlink (LINK) and Artificial Superintelligence Alliance (FET). This trend has been documented through Binance's Altcoin Netflow data.

Why is crypto up today

Source: CryptoQuant

Although altcoins have yet to catch up to BTC, with the overall altcoin season index sitting at 18, the market cap for altcoins has successfully broken through a significant resistance level, which might suggest renewed strength in the altcoin market, as noted by analyst Ash Crypto.

Why is crypto up today

Source: X

Looking ahead, the release of the Federal Open Market Committee (FOMC) minutes from the last meeting is expected on December 30. This will influence January rate cut expectations and may lead to increased market volatility as New Year’s Eve approaches.