Why Is the Crypto Market Up Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) whiplashed over the last 24 hours as volatility ensued. BTC forming a new all-time high (ATH) triggered this instability, which interestingly proved to be beneficial to the likes of Worldcoin (WLD), which rose by 21%.

In the news today:-

• A ChainPlay report reveals that 93% of Web3 GameFi projects are effectively dead, with values down 95% from all-time highs. While retail investors averaged 15% profits, institutional investors achieved significantly higher returns.
• President-elect Trump appoints PayPal co-founder David Sacks as the first White House cryptocurrency and AI czar. With a strong fintech and tech background, Sacks is expected to guide national policy and position the US as a leader in these fields.

The Crypto Market Shows Uncertainity

The total crypto market cap experienced extreme volatility yesterday, initially surging by $113 billion before dropping $203 billion within 12 hours. This dramatic swing underscores the unpredictability of the market, highlighting both opportunities for gains and risks of losses for investors. Such fluctuations continue to drive intense market scrutiny.

Currently, the total market cap (TOTAL) has recovered to $3.50 trillion, maintaining a delicate balance. The focus now is on sustaining the $3.49 trillion support level to ensure the continuation of the uptrend. Retaining this support is crucial for maintaining investor confidence and encouraging further market participation.

If TOTAL fails to hold $3.49 trillion, it risks falling further, potentially testing the next support level at $3.10 trillion. This scenario could trigger increased selling pressure and shake short-term market optimism.

Bitcoin Falls to $90,000

Bitcoin (BTC) hit a new all-time high (ATH) yesterday at $104,087, fueling extreme bullish sentiment across the market. However, the rally was short-lived as BTC experienced intra-day lows of $90,500, reflecting the volatile nature of the cryptocurrency market. 

BTC has since rebounded, trading at $97,490 and attempting to stabilize. The cryptocurrency’s current focus is reclaiming the critical $100,000 level as a support floor to continue its uptrend. Successfully holding this level could reinvigorate bullish momentum and attract renewed interest from both retail and institutional investors.

Should Bitcoin fail to reclaim $100,000, it risks prolonged consolidation below this milestone. Extended stagnation could trigger profit-taking and increased selling pressure, dampening market optimism. This scenario would pose challenges to Bitcoin’s ability to sustain its upward momentum, leaving traders vigilant for potential downside risks.

Worldcoin Makes It to the Top

Worldcoin (WLD) has emerged as the best-performing cryptocurrency over the last 24 hours, with its price surging by nearly 21%. Currently trading at $3.99, this significant rise has positioned WLD as a strong contender in the altcoin market. The rally highlights renewed investor interest and increasing market activity around the token.

Despite reaching an intra-day high of $4.19, Worldcoin is yet to establish solid support to sustain its recent gains. The lack of strong backing increases the risk of short-term volatility. 

Currently trading at a six-month high, WLD faces potential risks of a drawdown if the rally loses steam. A slip to $3.00 would invalidate the bullish thesis and challenge the coin’s upward trend. Such a decline would signal increased caution among traders, potentially impacting future price movements.

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