The cryptocurrency market continues to capture investor interest as it reaches new milestones on December 2, 2024. Extreme market optimism dominates sentiment, while significant liquidations and sharp price fluctuations mark the day’s events.
According to the Phoenix Group, the global crypto market shows robust activity, with over 31,300 currencies circulating. The total market capitalization is $3.39 trillion, supported by a remarkable 24-hour trading volume of $202.12 billion. Bitcoin and Ethereum remain dominant forces, with Bitcoin holding a 55.5% dominance and Ethereum accounting for 12.8%.
The Fear and Greed Index, a popular sentiment metric, indicates “Extreme Greed” with a score of 80, reflecting heightened bullish sentiment compared to scores of 83 a week ago and 70 a month prior. Meanwhile, the battle between bulls and bears continues, with BTC longs slightly trailing shorts at 48.51% against 51.49% in the past day.
Bitcoin Steady Amid Altcoin Swings and XRP Liquidation Frenzy
Bitcoin’s price remains a key market driver, trading at $94,924. Despite maintaining its dominant position, Bitcoin faces considerable volatility as it battles against high liquidation figures. Similarly, Ethereum trades at $3,591, with gas fees at an affordable 16 GWEI, signalling a favourable environment for transactions on its network. DeFi activity also remains robust, with the total value locked (TVL) across decentralized platforms reaching $192 billion.
Altcoins faced mixed fortunes throughout the day. HBAR experienced a dip of 7.57% but managed a significant price recovery with a bounce of 26.55%. Similarly, KAIA saw a 9.02% dip followed by a 22.26% rebound, highlighting its volatile trading environment. Other notable coins, including XRP and IOTA, recorded dips of 8.89% and 11.44%, respectively, with corresponding bounces of 20.69% and 24.46%. Litecoin (LTC) also joined the fray with a dip of 9.01% and a recovery of 17.03%.
The market recorded heavy liquidations over the past 24 hours, led by XRP, which saw $65.32 million wiped out, underscoring the asset’s significant volatility. Bitcoin followed closely with $59.88 million in liquidations, while Ethereum accounted for $49.63 million. DOGE and SOL also made the list with $30.59 million and $19.08 million in liquidations, respectively. These figures highlight the precarious nature of leveraged trading amid heightened market activity.
Sentiment Shapes a Mixed Crypto Day
The current sentiment-driven market conditions, characterized by extreme greed, may fuel further volatility. Analysts caution that bullish momentum often leads to price rallies but also increases the risk of sharp corrections. Market participants are urged to exercise caution, especially given the high liquidation volumes and unpredictable price movements.
December 2, 2024, underscores the evolving and dynamic nature of the cryptocurrency market. While Bitcoin and Ethereum maintain strong positions, altcoins exhibit a volatile mix of gains and losses. The sharp liquidations highlight the risks inherent in leveraged trading during periods of high market optimism. As the market navigates this wave of extreme greed, traders and investors should remain vigilant, balancing optimism with strategic caution to navigate the road ahead.
