Crypto Market Volatility
The market staged a strong rebound after early December's sell-off. Bitcoin surged over 7%, hitting a two-week high above $93,000 before settling around $92,000. The total crypto cap jumped about 5-7%, from roughly $2.94 trillion to $3.10 trillion, driven by gains in Ethereum, Solana, and others. However, this volatility wiped out leveraged positions big time—over $400 million in liquidations, mostly shorts, as per Coinglass data. That's a hefty hit for bearish traders, signaling how quickly sentiment can flip.
On the political front, things are mixed. UK ministers are pushing to ban crypto donations to parties, citing anonymity risks, which could hurt pro-crypto groups like Reform UK. China's renewed crackdown pressured Hong Kong-listed firms, adding to global regulatory jitters. Trump-linked American Bitcoin tanked 40% post-lockup, amid broader volatility warnings. Yet, Bank of America now recommends 1-4% crypto allocations for clients, showing growing institutional buy-in.
Overall, these political moves amp up uncertainty, fueling short-term dips but potentially paving the way for clearer rules that boost long-term adoption. Stay vigilant—crypto's not for the faint-hearted.
Stay tuned for tomorrow’s pulse!
