Why is the crypto market up today?
The crypto market is up today as investors view spot ETF inflows and the possibility of a strategic Bitcoin reserve in the US as positive catalysts for bullish market momentum.
The total crypto market capitalization is up 3.2% over the last 24 hours to rest at $3.71 trillion on Dec. 16.
The overall trading volume has also jumped 27% on the day to $162 billion, reinforcing the intensity of demand-side pressure.
Bitcoin BTC $104,661, the largest cryptocurrency by market capitalization, has risen 3.5% over the last 24 hours to trade at $81,587, just below the $106,488 all-time high set during the early Asian trading hours on Dec. 16.
Ether ETH $3,949.51, the second-largest crypto, climbed 3.25% to trade around $3,976 at the time of publication.
Let’s look closer at the factors driving the crypto market up today.
Prospects of Bitcoin becoming US reserve asset
One of the factors contributing to the bullishness in the crypto market today is US President-elect Donald Trump’s recent comment about his intentions to build a strategic Bitcoin reserve and do “something great” with crypto.
Trump could issue an executive order on “day one” of his second term to designate Bitcoin a reserve asset status, according to Jack Mallers, founder and CEO of Strike.
“It wouldn’t be the size and scale of 1 million coins, but it would be a significant position,” Mallers said.
There are also possibilities of a third Bitcoin reserve bill at the state level, which would follow Texas and Pennsylvania’s lead, said Satoshi Action Fund CEO Dennis Porter during an X Space on Dec. 15.
Porter added he expects at least 10 states to introduce a Bitcoin reserve bill in total.
“It’s not going to stop. We’re going to see more and more of these bills come. At least 10, in my opinion.”
