#BURNGMT The cryptocurrency market in December 2024 has been marked by significant shifts and volatility, driven by both macroeconomic factors and sector-specific events. Bitcoin, which has been a central figure in the market, recently crossed the $100,000 threshold. This surge was fueled by institutional adoption, particularly following the approval of spot Bitcoin ETFs, and renewed optimism in the crypto space, notably spurred by political developments like the election of pro-crypto leaders in major economies.
In particular, Bitcoin's performance has been solidified by its growing role as a store of value, akin to "digital gold." As inflation concerns persist globally, Bitcoin's appeal as a hedge against fiat devaluation has strengthened. The market capitalization of Bitcoin now hovers around $2 trillion, positioning it alongside major tech companies like Google and Amazon. However, some analysts caution that the price may be approaching a resistance point, with the Relative Strength Index showing signs of overbought conditions.
Ethereum has also experienced substantial growth, rising 50% since early November 2024. This rally follows a period of consolidation and is largely attributed to the increasing adoption of Ethereum's Layer-2 scaling solutions, as well as the deflationary effects brought about by its Proof-of-Stake (PoS) transition and the EIP-1559 burn mechanism. Ethereum's price is projected to reach around $4,300 by the end of the year.