Why Is Bitcoin Soaring This Christmas Day?

The crypto market experienced a true Christmas rally on December 25, 2024, with Bitcoin soaring to 98,000 dollars, leading to a general increase that added over 100 billion dollars to the total market capitalization.

A Historic Christmas Day for Bitcoin

The crypto market celebrates Christmas with a spectacular increase that began the day before December 25. Starting from 94,000 dollars, Bitcoin climbed quickly to approach the symbolic barrier of 100,000 dollars, briefly reaching 99,000 dollars before stabilizing around 98,000 dollars. This 4% increase in just a few hours represents a substantial gain for holders, bringing Bitcoin’s market capitalization to 1,940 billion dollars.

The rise comes after a tumultuous period triggered by the last meeting of the U.S. Federal Reserve. Despite announcing a 25 basis points decrease in interest rates, Bitcoin paradoxically dropped by 16,000 dollars, falling from 108,000 to 92,000 dollars at the end of last week.

Bitcoin’s dominance in the crypto market has strengthened, now exceeding 54%, with a market capitalization nearing 1,940 billion dollars. This performance showcases the renewed confidence of institutional investors in the digital asset, despite recent volatility.

The timing of this rally, coinciding with Christmas festivities, recalls the historical movements observed during previous year-end periods, where the crypto market often displayed increased activity.

A Dragging Effect on the Entire Crypto Market

The rise of Bitcoin has had a positive effect on the entire crypto sector. The total market capitalization is now approaching 3.6 trillion dollars, driven by notable performances across all altcoins.

Ethereum, the second-largest crypto, has approached 3,500 dollars with a 2% increase. Other major assets like Avalanche have recorded even larger gains, with a 5% rise taking its price above 40 dollars. Solana and Dogecoin were not left out, showing gains between 2 and 4%.

Smaller market capitalizations also joined the festivities, with tokens like MOVE and BGB recording spectacular increases of up to 26% and 16% respectively.

As Santa Claus seems to have generously filled the bags of crypto investors this year, the entire team wishes you a Merry Christmas! May this end of the year be as bright as the market performances, and may 2025 continue on this promising trend!