Bitcoin continues gains as futures activity accelerates at start of year – London Business News | Londonlovesbusiness.com

Bitcoin continues its advance for the third consecutive session, advancing more than 1.5%. Meanwhile, altcoins continued their notable gains, benefiting from Bitcoin’s rally.

Ethereum is up more than 2%, Solana is up more than 6%, and XRP is up nearly 2%.

The crypto gains come as liquidity begins to return to the market with the end of the holidays.

The Bitcoin futures market has added more than $1 billion in open interest after a downtrend since late last year. This also comes as buyers have so far managed to maintain control over short sellers, which could keep the bullish price trend alive.

According to CoinGlass data, Bitcoin futures open interest has increased from $56.06 billion yesterday to more than $57.40 billion today. The long/short ratio remains above 1 since the last day of last year. XRP’s open interest also increased from $1.86 billion to $2.39 billion in the same period, representing a growth of 28%.

This igniting momentum coincides with the shift in focus back to the new coming era of cryptocurrencies that will be witnessed with Donald Trump’s return to the White House later this month. A friendly regulatory environment with this technology and tax exemptions will expand its adoption and integration with economic life and the financial system to achieve the goal for which it was originally intended.

A positive climate that may prevail in the stock market with favorable policies for companies will also drive risk appetite, which is a very necessary factor for cryptocurrencies to holdtheir gains.

Elon Musk, a close friend of Trump and a prominent figure in the new administration, has reminded the market of the support that cryptocurrencies may enjoy during the upcoming presidential term and brought back memories of the momentum that he has created before the crypto winter.

He changed his X account name to Kekius Maximus and his profile image to a Pepe the Frog wearing a Romanian military uniform. This strange move by Musk caused a bullish wave, especially for meme coins such as Pepe, Dogecoin and Shiba Inu, which recorded gains of more than 6% as of 9 am GMT.