In an impressive turn of events, the total cryptocurrency market capitalization climbed by 3.3% within the last 24 hours, reaching approximately $3.5 trillion on Thursday, November 28, during the early hours of the Asian trading session. Bitcoin (BTC) experienced a brief spike, touching $97.3k following a 4% rally before settling at around $95.6k as of this writing. The altcoin market also saw remarkable gains, with Ethereum (ETH) leading the charge by surging over 7% to achieve a daily high of approximately $3,682. As a result, the crypto-leveraged market saw liquidations of nearly $300 million, predominantly impacting long traders.
Major Factors That Fueled Crypto Rebound Today
Emergence of FOMO Traders
As Bitcoin’s price momentarily hit $91k, the community’s call to “buy the dip” during Thanksgiving and Black Friday soared, according to social media trends. Google searches for Bitcoin have reached their highest levels since May 2022, indicating a resurgence of FOMO (Fear of Missing Out) traders in the crypto market. Currently, the overall Open Interest (OI) in the cryptocurrency sector has reached a record high of over $120 billion. The notable increase in stablecoin supplies across various blockchains suggests a substantial rise in FOMO-driven trading activity.
Crypto Deregulation in China and Morocco
In a significant policy shift, Morocco has legalized cryptocurrency adoption after banning it since 2017. Abdellatif Jouahri, the governor of the Bank Al-Maghrib (BAM), announced the development of a draft law aimed at regulating crypto assets, which is currently in the adoption phase. Meanwhile, Chinese enterprises are increasingly embracing cryptocurrencies, led by Bitcoin, as the government relaxes its stringent stance on digital assets. On Thursday, SOS, a publicly traded Chinese company, revealed that its Board of Directors has approved a $50 million investment in Bitcoin, signaling growing confidence in the crypto sector.
Rising Demand from Whale Investors
The ceasefire between Israel and Lebanon has brought potential stability to the Middle East, contributing to a bullish recovery in global financial markets, including the cryptocurrency sector. The supply of Bitcoin on centralized exchanges has decreased by over 15,000 BTC in the past 24 hours, reaching a multi-year low of less than 2.3 million BTC. Additionally, United States-based spot Bitcoin and Ether ETFs recorded positive cash inflows on Wednesday, reversing the outflows seen earlier in the week.
FAQs
Why is Bitcoin going up today?
Bitcoin’s recent surge is attributed to increased buying from whale investors, a reduction in exchange supply, and renewed interest from both retail and institutional participants.
How did Ethereum lead today’s altcoin rally?
Ethereum led the altcoin surge by gaining 7%, driven by the growth of stablecoins, sudden liquidity influxes, and heightened investor optimism within the altcoin market.
