November is the most bullish month of the year, with the Coinglass monthly Bitcoin returns report indicating a +36.29% increase, which is more than 3x the Uptober. The same stats would have been even higher if the crypto market had not witnessed a crash yesterday, but that has changed today. The bulls have returned to the higher side, pushing the Bitcoin price back to $95.7K from the earlier drop of $91k.
That simple crash became concerning, as the investors were already scared of the possibility of the Thanksgiving Day Massacre, which pushed the Bitcoin price down by 17% within a few hours in 2020. However, the market has a different plan, as all cryptos are painted green on the heatmap.
Why is the Crypto Market Up After the Earlier Drop?
With a small setback, the market has returned to its earlier conditions. As a result, the global market cap is at $3.31T after a 3.11% surge. Even the fear and greed index has shifted higher towards ‘extreme greed,” and all major cryptos are in green, including Ethereum, which is at $3.6k after a 5% surge, Solana at $239 after a 2.6% surge, XRP at $1.48 after 6% surge and much more.
Although this is a part of the industry where consolidation happens after major rallies, followed by recovery, there are four more reasons behind this crypto market rally.
1. FOMO Sentiments Returning To The Crypto Market
With Bitcoin hitting $91k, the demand for buying increased as people awaited the drop around Thanksgiving and Black Friday. It is because historical trends indicate a significant surge past these festivities. In this period, everyone focused on the token, some with excitement while the rest in fear. Regardless, Google Trends reached an ATH for the first time since May 2022. It clearly indicates the FOMO sentiments returning to the market.
Not only Bitcoin but the hype built up against the rest trending altcoins as well. It even includes the failing tokens like XRP, whose before-crash performance shocked investors. Even the Ethereum futures open interest reached an all-time high, indicating the market’s bullish sentiment. The same is true for Bitcoin, as the overall Open interest has peaked past $120 Billion, fueling the crypto market rally.
2. Political Shift Favoring The Industry
The US Presidential election was one of the biggest macroeconomic events that positively influenced the crypto market. With Donald Trump turning into a pro-crypto supporter, the entire market has witnessed this bullish push, leading to Bitcoin price nearing $100k. The same political influence is helping the market, where the discussion of establishing a strategic Bitcoin Reserve, replacing SEC chair Gary Gensler with a more crypto-friendly leader, and much more is helping the market’s bullishness.
Many other countries are considering Bitcoin for nations’ financial investments. Just recently, the Vancouver city mayor, Ken Sim submitted a Bitcoin motion to diversify the financial resources and become a Bitcoin-friendly city.
3. Morocco and China Unban Cryptocurrency
Morocco and China are among the few countries that have banned cryptocurrency for the last few years, which has affected the market’s performance. However, things are settling back together, and many Chinese companies have begun adopting cryptocurrencies. One of the biggest examples of this is the SOS planning to invest $50M in Bitcoin to strengthen themselves on a big level. Moreover, some positive hints are also out there from the Chinese government, which could result in complete unbanning.
On the other sites, the news of Morocco removing the ban on the crypto industry yesterday has pushed the crypto market up. The government has banned crypto trading since 2017 but legalized the adoption with an announcement at present.
4. BTC and ETH ETF Inflows & New ETF Filings
The Bitcoin ETF has become a major sensation among investors. Within a few months, this ETF established a high demand, leading to a trading volume of millions. The crypto market crash itself was the result of the increased ETF outflows, but that changed. The stats revealed that the BTC ETF gained $103M in inflows, where 1,120 BTC were bought.
Even the ETH ETF inflow also turned high, bagging a $90.1M inflow, where around 27,080 ETH were bought. Overall, this is an indication of the steady institutional interest.
Additionally, the craze for ETFs is constant, as Bitwise has filed for 10 Crypto Index ETFs, including Bitcoin, XRP, Solana, Cardano, Uniswap, Polkadot, Chainlink, Ethereum, Avalanche, and Bitcoin Cash, which is impressive.
Will Bitcoin Price Hit $100K Next?
With the recovery in the crypto market performance and the investor’s bullish sentiments, the biggest question is whether the Bitcoin price will hit $100K next or not. The token does possess potential, as it almost touched the $100k mark, setting an ATH at $99.6k.
However, things have changed with the recent consolidation, as the 12-hour chart indicates a bearish divergence. This could lead to a further consolidation or a slight pullback before the tokens break out.
Considering that, some analysts believe that the Bitcoin price might witness a 30% correction before achieving the $100K mark, which can take days or even weeks.,
The post 4 Reasons Why the Crypto Market Is Up Today? appeared first on CoinGape.
