2025-01-22 02:24:34 by Benzinga

Leading cryptocurrencies surged Tuesday after the SEC under President Donald Trump launched a dedicated cryptocurrency task force. CryptocurrencyGains +/-Price (Recorded at 8:00 p.m. ET)Bitcoin BTC/USD+4.61%$105,950.10Ethereum ETH/USD               +3.83%$3,353.90Dogecoin DOGE/USD          +3.45%$0.3707What Happened: Bitcoin sailed above $107,000 during U.S. afternoon hours, following Day 1 of Trump's presidency, which made no mention of cryptocurrencies. Profit-taking pulled the apex digital asset to the $105,000 zone in overnight trading. Ethereum also made strides, rising to an intraday high of $3,360. The recovery coincided with the formation of a dedicated task force by SEC's Acting Chair, Mark Uyeda, intending to develop a clear regulatory framework for the cryptocurrency industry. The uptick hit traders betting on price declines in futures markets, with about $133 million in short positions getting liquidated. Bitcoin's Open Interest jumped 4.71% in the last 24 hours. An increase in Open Interest, coinciding with an increase in the spot price, indicated an influx of new money into the derivatives. That said, the number of traders shorting Bitcoin rose in comparison to those betting on a price increase, according to the Long/Short Ratio. The "Extreme Greed" sentiment in the market intensified, according to the Crypto Fear & Greed Index. Top Gainers (24-Hours) CryptocurrencyGains +/-Price (Recorded at 8:00 p.m. ET)ai16z (AI16Z)+22.01%$1.13Official Trump (TRUMP)+18.77%$42.97Sonic (prev. FTM (S)+17.69%$0.608The global cryptocurrency market capitalization stood at $3.63 trillion, rising by 2.02% in the last 24 hours. Stocks rallied a day after Trump was sworn in as U.S. president. The Dow Jones Industrial Average lifted 537.98 points, or 1.24%, to close at 44,025.81. The S&P 500 rose 0.88%, ending at 6,049.24, while the tech-focused Nasdaq Composite gained 0.64% to close at 19,756.78. The rally came as the president stopped short of imposing new import tariffs on his first day in office, providing temporary relief for the market. See More: Best Cryptocurrency Scanners Analyst Notes: Widely followed cryptocurrency analyst Ali Martinez noted that Bitcoin's network activity was robust, with growth in daily active addresses and whale transactions. "This trend signals a positive outlook for potential price appreciation," the analyst remarked. #Bitcoin network activity remains strong, with daily active addresses and whale transactions increasing simultaneously. This trend signals a positive outlook for potential price appreciation. pic.twitter.com/EMf8uyv3SB— Ali (@ali_charts) January 21, 2025Martinez highlighted whale interest in his other post, showing that over $2.24 billion worth of Bitcoin was snapped by large investors over the last 3 days. Popular cryptocurrency trader Michaël van de Poppe issued bold predictions for Bitcoin and altcoins in the ongoing cycle. "I’d rather look at valuations similar to the Dot.com bubble. $15-25 trillion of cryptocurrency market valuations. Bitcoin to $300,000+," the trader projected. I think that this cycle we'll see #Bitcoin and #Altcoins tend to have a 2017-type of cycle. In that sense, $150K isn't a target for me. I'd rather look at valuations similar to the https://t.co/GoodB359DI bubble.$15-25T of crypto market valuations.Bitcoin to $300K+.— Michaël van de Poppe (@CryptoMichNL) January 21, 2025Read Next:     Ethereum’s ‘Weak’ Momentum Disappoints Top Analyst, But He Doesn’t Rule Out A Rally To $7,000: Here’s Why Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.