In the past 24 hours, major cryptocurrencies have seen significant price increases, with Bitcoin (BTC) surpassing $95,000. This uptrend is attributed to various factors, including the anticipation of a more crypto-friendly administration under President-elect Donald Trump and the upcoming halving event in 2024.

Market Sentiment: A Shift Towards Bullish Expectations

According to CoinDesk’s analysis, trading volumes for XRP have been unusually high due to its popularity among South Korean exchanges. Historically, this has led to price volatility with a bias towards the upside. As a result, XRP surged 11% in the past day, leading growth among majors.

Majors See Significant Gains

• Cardano’s ADA: Added up to 8%
• Solana’s SOL: Up by 8%
• Chainlink’s LINK: Also added up to 8%
• Ether (ETH): Rose by 3%
• BNB Chain’s BNB: Followed a similar trend, increasing by 3%

The broader market also saw gains, with the CoinDesk 20 (CD20) – a liquid index tracking the largest tokens by market capitalization, minus stablecoins – rising by 5.8%.

Memecoins Join the Uptrend

• Dogecoin (DOGE): Added 5% to its value
• Shiba Inu (SHIB): Followed a similar trend, increasing by 5%

A Bullish Year Ahead?

The anticipation of a more crypto-friendly administration under President-elect Donald Trump has contributed significantly to the market’s optimism. As part of his campaign promises, Trump has vowed to implement policies that are favorable to cryptocurrencies.

Historically, the Bitcoin halving event in 2024 has led to a bullish trend in the following year due to reduced supply and increased demand. The broader crypto market also tends to follow a four-year cycle influenced by these events.

Predictions for the Future

Several firms have made predictions about the future of the cryptocurrency market. Some notable predictions include:

• Galaxy Research: Forecasts large-scale institutional, corporate, and nation-state adoption in bitcoin investments. The firm also predicts that at least five Nasdaq-100 companies and five nation-states will adopt the asset.
• QCP Capital: Echoes similar sentiments, stating that institutions will adjust their asset allocations in January, leading to increased demand for downside puts and covered call selling.

Will Mainstream Adoption Reduce Volatility?

Some experts believe that mainstream adoption may reduce volatility, making it more attractive to institutional firms. Augustine Fan, head of insights at SOFA, stated that declining realized volatility would add diversification benefits and alpha to traditional 60/40 portfolios.

Conclusion

The cryptocurrency market has seen significant gains in the past day, with Bitcoin surpassing $95,000. The anticipation of a more crypto-friendly administration under President-elect Donald Trump and the upcoming halving event in 2024 have contributed to the market’s optimism.

As we enter a new year, it is essential to consider the predictions made by various firms and experts. While some believe that mainstream adoption will reduce volatility, others are optimistic about large-scale institutional, corporate, and nation-state adoption in bitcoin investments.

The future of the cryptocurrency market is uncertain, but one thing is clear: the market is heading towards a bullish year, with significant gains expected across various majors.