The cryptocurrency market has entered a consolidation phase after failing to build on the rally caused by the positive macroeconomic news. The consolidation saw leading assets, Bitcoin (BTC) and Ethereum (ETH), now fall into familiar territory.
Here’s why the crypto market is soaring today – December 21
As a result, the global crypto market capitalization stands at $812.53 billion, and the $1 trillion mark remains uncertain amid protracted sell-offs. According to CoinMarketCap data, in the last 24 hours, the market cap has registered small increases of about 0.2% compared to December 20.
Global crypto market cap one-day chart. Source: CoinMarketCap
Indeed, the small gains coincided with both Bitcoin and Ethereum pulling off short-term buying activity. Accordingly, with a market cap of $324.95 million, Bitcoin has regained 40% dominance of the overall global crypto market.
The same trend is repeated in Ethereum, with the decentralized finance (DeFi) asset holding an 18.3% share and representing a market cap of $148.94 million.
Major crypto industry events
The pressure to buy relief comes even as the market continues to feel the effects of the FTX crypto exchange crash. For example, crypto trading platform Auros Global announced that it has been given a “temporary liquidation” to restructure outstanding debt to lenders. Platform encountered problem after FTX infection.
At the same time, bankrupt crypto lending platform Voyager Digital will now be acquired by Binance USA. The deal will allow Binance to purchase the platform’s assets for $1,022 billion.
Also, cryptocurrency exchange Coinbase has released a report highlighting the market’s 2023 outlook. The report predicted that the market would emerge from the prevailing crypto winter and attract institutional investors. With the release of the report, the platform was criticized for skipping crypto projects like Cardano (ADA).
Meanwhile, Bitcoin and Ethereum remain focused on the price trajectory as the two assets are known to dictate the overall price action.
Bitcoin price analysis
Currently, Bitcoin is trading at $16,853 with small gains of less than 0.1% in the last 24 hours, with the weekly chart showing losses of around 6%. Based on the asset’s recent price action, analysts have suggested that Bitcoin still has a mountain to climb.
Bitcoin seven-day price chart. Source: Finbold
Ethereum price analysis
At press time, Ethereum was trading at $1,213 and the price has recorded minimal movements over the past 24 hours. On the weekly chart, the second-ranked cryptocurrency by market cap has corrected by almost 9%.
Ethereum seven-day price chart. Source: Finbold
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