The cryptocurrency market continued its sizzling rally on Sunday, fueled by the anticipation of a pro-crypto administration under President-elect Donald Trump. Leading cryptocurrencies surged higher, extending their electrifying gains into the weekend.
Bitcoin, the world’s largest cryptocurrency, reached a historic milestone, breaching the $81,000 mark for the first time ever. This surge in Bitcoin’s value is attributed to the growing optimism surrounding the potential for a more favorable regulatory environment for cryptocurrencies under the incoming administration.
Ethereum, the second-largest cryptocurrency, also saw significant gains, breaking the $3,200 barrier for the first time since July 31. Meanwhile, Dogecoin, the meme-inspired cryptocurrency, took the lead in the daily gains, skyrocketing over 34%.
The market dominance of Bitcoin increased to over 60%, reflecting the increasing demand for the digital asset. Ethereum also experienced a slight increase in its market share.
However, despite the overall bullish sentiment, not everyone is convinced the rally will continue unabated. Some analysts are predicting a potential pullback in the near term. Legendary cryptocurrency trader Peter Brandt projected Bitcoin to hit $125,000 by New Year, but cautioned that a market correction might be on the horizon.
Meanwhile, widely-followed cryptocurrency trader and analyst Scient predicted a halt in Bitcoin’s rally around $84-85,000, followed by a 7-10 day correction/consolidation phase before resuming the uptrend. These predictions highlight the inherent volatility of the cryptocurrency market and the ongoing uncertainty surrounding future regulatory policies.
The global cryptocurrency market capitalization surged to $2.76 trillion, reflecting the positive sentiment and continued investment in digital assets. Stock futures also saw gains on Sunday night, signaling continued optimism in the broader financial markets.
As the market moves forward, investors will closely monitor key inflation numbers, including October’s consumer price index scheduled for Wednesday and the producer price index data due on Thursday. These data points will provide insights into the health of the overall economy and potentially influence market sentiment in the coming weeks.
