In a stunning market rally just before Christmas, Bitcoin (BTC) surged past $98,500, marking a 5.65% increase driven by heavy spot market buying. This "Santa rally" has injected fresh optimism into the cryptocurrency market, with major altcoins following Bitcoin's upward trajectory.
The leading cryptocurrency reached new local highs across major exchanges like Bitstamp, recovering strongly from December's earlier lows. The bullish momentum triggered nearly $40 million in short position liquidations over 24 hours, reinforcing the upward price movement.
The altcoin market showed remarkable strength, with several tokens posting impressive gains. Ethereum (ETH) climbed 5% to reach $3,500, while XRP jumped 7.5% to $2.33. Solana (SOL) approached the $200 mark with a 6.1% increase. Avalanche (AVAX) emerged as the top performer, surging 12.2% to exceed $41.
BNB held steady near $700, showing a 2.1% increase. Cardano (ADA) traded at $0.94 after gaining 6.6%, while Dogecoin (DOGE) rose 7.5% to $0.334.
Market analysts remain divided on the sustainability of this rally. While some celebrate the return of large buyers as a positive indicator, others urge caution. Trader Rekt Capital warned about the importance of reclaiming previously lost support levels to maintain the upward momentum.
The crypto market's performance notably outpaced traditional financial markets, with both the S&P 500 and Nasdaq 100 showing gains under 1%. This divergence suggests renewed independent strength in cryptocurrency markets, though risks and uncertainty persist.
As the holiday season continues, all eyes remain on Bitcoin's ability to maintain its trajectory and potentially break the psychological $100,000 barrier.