Why Bitcoin, Ethereum and Dogecoin are rising today

It’s another positive day in the world of cryptocurrencies, with the overall market capitalization of this asset class crossing a new all-time high. As of 3:30 p.m. ET, the overall crypto market was up 5.1% over the past 24 hours to reach a total valuation of over $3.25 trillion.

Unsurprisingly, the best tokens Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO: ETH)And Dogecoin (CRYPTO:DOGE) are among the main drivers of this development. Given that these three major tokens combined represent almost three-quarters of the value of the entire crypto market, one would expect to see a market-relevant development for these three digital assets today.

As of 3:30 p.m. ET, Bitcoin, Ethereum, and Dogecoin were up 3.7%, 8.8%, and 2.1%, respectively. Each of these tokens had already made moves higher than 3% during intraday trading.

Let’s take a look at the key drivers behind today’s move and what could move these top chips higher from here on.

Bitcoin moving towards $100,000

Investors will be watching to see if Bitcoin can reach the important $100,000 threshold over the coming days. It now trades around $98,000 per token, and new all-time highs have become the norm following President-elect Donald Trump’s election victory.

The latest catalyst on the Bitcoin front that appears to be prompting a number of crypto traders and investors to step up their bullish bets on the world’s largest cryptocurrency is a report that Trump may seek to elect a “coin czar”. crypto” in a move that would further legitimize the sector. This, along with previous reports that Trump is seeking to build a strategic Bitcoin reserve, is prompting investors to place broad bets that Bitcoin will likely only go higher from here. For now, this consensus appears to be based on some key fundamental factors that are exacerbated by outsized bets on derivatives and leverage, causing momentum to skyrocket.

Ethereum’s recently approved spot exchange-traded funds (ETFs) have positioned this crypto as one of the biggest potential beneficiaries of any type of strategic crypto reserve. Many of the same catalysts that are driving Bitcoin higher, including supply and demand dislocations, are likely to be present with Ethereum, if one-off ETF inflows continue to generate continued buying pressure over time and various deflationary measures put in place by the Ethereum team come to fruition. Ethereum is also surging in this post-election world, although this token remains about 30% off its all-time high seen at the height of the last cycle.

Finally, Dogecoin’s quieter rally today is noteworthy, as it follows some market movements seen in recent weeks following the announcement that Elon Musk will effectively lead the so-called “Department of Efficiency government” of Trump. This nod to DOGE is just one of many, and as I discussed in a recent article, rumors that Musk owns a substantial amount of the dog-inspired meme token have led many speculators to continue to raise the price.

Can this gathering continue?

I certainly think many in the crypto industry (and enthusiastic investors who don’t follow crypto much) will likely be excited to see a $100,000 Bitcoin price coming soon. Right now, it seems like this psychological threshold is just waiting to be crossed.

These three tokens remain among the most important assets in the sector and will continue to provide a gauge for investors looking to gauge the strength of momentum and the direction digital assets as a whole could be heading. Today’s rally highlights the relatively strong momentum we are seeing, and at this point I see no reason why that momentum wouldn’t continue through the end of the year.

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