The cryptocurrency market today displayed bullish sentiment, with the Fear and Greed Index rising to 79, indicating extreme greed, up from 73 yesterday. Despite a 0.48% decline in the total cryptocurrency market cap to $3.41 trillion and a 12.05% decline in 24-hour trading volume to $117.91 billion, Bitcoin’s dominance rose to 57.20%, reflecting growing investor confidence. Key market drivers included significant developments in Bitcoin exchange-traded funds, Ethereum momentum, and blockchain adoption in Asia.
Bitcoin Below $100,000: Mixed Sentiment Amid ETF Outflows
Bitcoin struggled to hold near $98,000, facing resistance amid record outflows from BlackRock’s iShares Bitcoin ETF (IBIT), which reported $188.7 million in outflows on Christmas Day. However, data on Bitcoin futures showed a bullish sentiment, with a 12% annualized premium indicating strong demand for long positions. Analysts are forecasting a potential rally towards $105,000, supported by Bitcoin’s correlation to traditional markets like the S&P 500.
Ethereum: Optimism Grows for $3,500 Breakout
Ethereum has seen positive momentum as its ETFs surpassed $2.5 billion in inflows. Despite a 10% weekly price drop, ETH has remained resilient, trading at $3,475. Analysts are bullish on a break above $3,500, with a price target of $4,000 expected before President Trump’s inauguration. Institutional sentiment remains strong, with VanEck predicting a $6,000 cycle top for Ethereum in 2025.
Conclusion
Today’s crypto market reflects a dynamic mix of optimism and caution. While Bitcoin and Ethereum are facing key resistance levels, the bullish momentum remains intact in derivatives and ETF flows.