Bitcoin’s momentum slowed over the US Thanksgiving holiday, hovering near $95,000 after a sharp 10% drop that dashed hopes of hitting the $100,000 benchmark. This sideways trading pattern has drawn comparisons to the Thanksgiving of 2020, another bitcoin halving year, where the cryptocurrency experienced a 17% dip before embarking on a record-breaking bull run the following year.
Market watchers are left pondering whether history might repeat itself as Bitcoin’s current cycle unfolds.
Altcoins Steal the Spotlight
While Bitcoin took a breather, altcoins saw significant gains, bolstering their dominance in the crypto market. Legacy assets like XRP, Hedera (HBAR), and Cardano (ADA) have gained traction among investors.
XRP led the charge, breaking the $2 barrier for the first time in nearly seven years. This surge propelled it past Solana (SOL) and Tether (USDT) to become the third-largest cryptocurrency by market capitalization. Optimism surrounding pro-crypto regulations and expectations of a spot ETF approval in the US have fueled its recent rally.
HBAR also saw a remarkable rise, buoyed by reports that SpaceX will launch a satellite in January 2025 utilizing Hedera’s blockchain for in-orbit crypto transaction processing. Additionally, the Federal Reserve’s FedNow instant payments service recently incorporated Dropp, a Hedera-based payment platform, further boosting confidence in the asset.
Eyes on Economic Data
Attention now turns to Friday’s US nonfarm payroll figures, which could stir volatility in both cryptocurrency and traditional markets. A significant deviation from forecasts may influence the Federal Reserve’s stance on interest rates ahead of its December 18 meeting, potentially impacting investor sentiment across asset classes.
Microsoft’s Bitcoin Proposition
In a related development, Bitcoin advocate and MicroStrategy co-founder Michael Saylor recently met with Microsoft’s board of directors to propose adopting Bitcoin as a strategic reserve asset.
Saylor emphasized that Bitcoin, as “Digital Capital,” offers technical and economic advantages over physical assets. He argued that such a move could elevate Microsoft’s market value by an estimated $5 trillion.
Microsoft shareholders are set to vote on December 10 on whether the tech giant should incorporate Bitcoin into its balance sheet. If approved, this landmark decision could propel Bitcoin past the elusive $100,000 mark as the new year approaches.
eToro and the Evolving Crypto Landscape
eToro, a platform with over 38 million users worldwide, continues to cater to growing interest in cryptocurrency. As digital assets gain mainstream traction, eToro aims to empower investors with innovative tools to navigate the evolving financial ecosystem.
With altcoins surging and major corporations eyeing Bitcoin, the crypto market remains a focal point of innovation and opportunity as 2024 nears its conclusion.