Bitcoin and Ethereum Surge to Record Levels
Bitcoin reached a historic peak of $107,822** on Monday, marking a 5.5% increase from the previous week. Ethereum also climbed to **$4,081, its highest price since December 2021, surpassing earlier peaks recorded in March and December 2023.
At publication time:
- BTC stabilized at $105,815 (3% daily gain, 9% weekly rise)
- ETH held at **$4,029** (3% daily increase), still **16% below** its November 2021 ATH of $4,878
- Total crypto market capitalization hit $3.7 trillion, up 2.97% in 24 hours
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Market Liquidation Data
CoinGlass reports $489M in liquidations over 24 hours:
- BTC: $177M
- ETH (including long positions): $97M
Institutional Demand Reaches Unprecedented Levels
Cryptocurrency funds have attracted $32B in net inflows** over four weeks, per CoinShares. Year-to-date inflows total **$445B—quadruple previous annual records.
Key highlights:
US Bitcoin ETFs:
- $21.7B weekly inflow
- $53B total since January 2024 launch
Ethereum Funds:
- 7 consecutive weeks of inflows ($1B total)
- Bernstein analysts note accelerating ETH ETF demand (~$800M weekly)
Altcoin Momentum:
- XRP: $145M weekly inflow
- Polkadot/Litecoin: $3.7M and $2.2M respectively
The "Santa Rally" Phenomenon
Historical data shows BTC closed December higher in 6 of the past 8 years, with gains ranging from 8% to 46%. This year's rally appears ahead of schedule, fueled by:
MicroStrategy's Nasdaq 100 Inclusion:
- MSTR shares rose 600% YTD
- May trigger capital cycle: Index funds buy MSTR → MSTR acquires more BTC → Reinforces price momentum
Macroeconomic Factors:
- Potential Fed rate cuts
- Declining inflation
- Pro-crypto policies under potential Trump administration
💰 Expert Forecasts:
- BTSE's Jeff Mei projects $125K BTC by 2025
- IG's Tony Sycamore identifies $110K as next psychological resistance
FAQ: Understanding the Crypto Rally
Q: Why are Bitcoin and Ethereum rising simultaneously?
A: Institutional ETF approvals and anticipated spot ETH ETFs create parallel demand. Historically, ETH follows BTC's lead during major bull cycles.
Q: What defines a "Santa Rally" in crypto?
A: Seasonal December-January price surges driven by holiday optimism, tax planning, and year-end portfolio rebalancing.
Q: How sustainable is this uptrend?
A: While corrections are inevitable, analysts cite strong fundamentals: institutional adoption, halving effects, and favorable regulations.
Market Outlook: Altcoin Season Ahead?
Coinstash's Mena Theodorou observes:
"With BTC above $100K and ETH's ETF momentum, we may see altcoins rally next. Combined with pro-crypto policies and economic tailwinds, conditions for sustained growth are optimal."
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Disclaimer: Cryptocurrency investments carry high risk. Conduct independent research before trading.