The cryptocurrency market has experienced a notable rebound, with the total market capitalization climbing by 3.3% over the last 24 hours to reach approximately $3.5 trillion as of Thursday, November 28, during the early Asian trading session. This resurgence was marked by Bitcoin’s (BTC) price briefly reaching $97.3k after a 4% rally, before settling around $95.6k at the time of writing. The altcoin sector also saw significant gains, led by Ethereum (ETH), which surged over 7% to achieve a daily high of approximately $3,682. This bullish momentum resulted in nearly $300 million being liquidated from the crypto-leveraged market, predominantly involving long traders.
Major Factors That Fueled the Crypto Rebound Today
Emergence of FOMO Traders
As Bitcoin’s price briefly soared to $91k, there was a noticeable increase in social media activity encouraging investors to “buy the dip” during this year’s Thanksgiving and Black Friday. Google Trends data for Bitcoin searches have surged to levels not seen since May 2022, indicating a resurgence of Fear of Missing Out (FOMO) among traders in the cryptocurrency sector. The overall Open Interest (OI) in the crypto market has reached a new all-time high, exceeding $120 billion. The notable increase in stablecoin supply across various blockchains further suggests a significant rise in FOMO-driven trading activity.
Crypto Deregulation in China and Morocco
In a significant policy shift, Morocco has ended its long-standing ban on cryptocurrency trading, which had been in place since 2017. Abdellatif Jouahri, the governor of Morocco’s central bank, Bank Al-Maghrib (BAM), announced that the bank is drafting legislation to regulate crypto assets, which is currently undergoing the adoption process. Meanwhile, in China, there is a gradual easing of the government’s crackdown on cryptocurrencies, with Chinese companies increasingly embracing digital assets like Bitcoin. On Thursday, SOS, a publicly traded Chinese company, revealed that its Board of Directors had approved a plan to invest $50 million in Bitcoin.
Rising Demand from Whale Investors
The recent ceasefire agreement between Israel and Lebanon, which hinted at potential stability in the Middle East, contributed to the bullish recovery in the cryptocurrency market, aligning with major global indices. The overall Bitcoin supply on centralized exchanges decreased by over 15,000 BTC in the past 24 hours, reaching a multi-year low of less than 2.3 million BTC. Additionally, spot Bitcoin and Ether ETFs in the United States recorded positive cash inflows on Wednesday, following outflows earlier in the week on Monday and Tuesday.
FAQs
Why is Bitcoin going up today?
The recent surge in Bitcoin’s price is attributed to increased buying by whale investors, a decrease in the supply of Bitcoin on exchanges, and renewed interest from both retail and institutional investors.
How did Ethereum lead today’s altcoin rally?
Ethereum led the altcoin rally with a 7% increase, driven by factors such as the growth of stablecoins, spikes in liquidity, and heightened investor optimism within the altcoin market.
