Bitcoin (BTC) has snapped into action after a dour weekend, posting a 3% gain on Monday before continuing an upward trend throughout Tuesday morning.
At the time of writing, the benchmark cryptocurrency was trading above $43,000 on the BTC/USDT pair.
The crypto markets are enjoying a bout of volatility as the bulls ponder whether the Santa rally has any gas left in the tank.
Research analyst Matteo Greco at Fineqia International Inc (CSE:FNQ, OTC:FNQQF) observed: “High volatility is a typical outcome following periods of significant uptrends and downtrends, triggering a cascade of liquidations that reduce market leverage and contribute to a more sustainable price action and market environment.
“Traders often capitalise on moments of heightened volatility to attract liquidity and readjust their positions.”
Heightened volatility has brought a surge in trading volumes, as Greco observed: “An analysis of daily volume on centralised exchanges, measured over a seven-day period from the 11th to the 17th of November, revealed a daily volume exceeding $36 billion.
“This represents the highest level recorded since March 2023, affirming strong trading activity that contributes to increased volatility.”
Encouragingly for the bulls, BlackRock has revised its spot-bitcoin ETF application to appease gatekeepers at the US Securities and Exchange Commission (SEC).
BlackRock said it will allow cash redemptions alongside in-kind redemptions in its highly anticipated crypto fund, a seemingly innocuous addition that should nonetheless sweeten the odds of approval.
Bitcoin remains over 160% higher year to date – Source: tradingview.com
Ethereum (ETH) snapped back from a bearish position to close Monday one percent higher before adding another 1.5% this morning.
At the time of writing, the ETH/USDT pair was swapping for $2,254.
Solana (SOL) and Cardano (ADA) led the charge on the blue-chip altcoin space by adding 8% and 10% overnight respectively, followed by mid-single-digit gains from Avalanche (AVAX) and Polkadot (DOT).
Global cryptocurrency market capitalisation surged 2% higher overnight to $1.6 trillion, with bitcoin dominance remaining above 53.5%.