Why is crypto going up?

The crypto market bore witness to yet another milestone all-time high (ATH) on Monday 16th of December as Bitcoin (BTC) rose to over $106,500. The surge also helped pull Ethereum (ETH), the second largest crypto on the market, up to $3,965 around the same time. But why is crypto going up? The explanation for the most recent increase is President-elect Donald Trump’s most recent mention of creating a strategic Bitcoin reserve similar to the U.S.’s strategic oil reserve, further stoking the enthusiasm of the crypto community. Bitcoin’s value is currently up 192% for the year, which also bodes well for the wider crypto market, as well as global adoption and utility. 

In this article, we explore why crypto is going up, what Bitcoin dominance has to do with the current bull market, and what we could expect from crypto as we head into the first weeks of 2025.

Why is crypto going up?

The crypto market is going up. It is undergoing a steady transformation as cryptocurrencies across the board rise in value. This universal increase is being driven by several converging factors, principally led by the recent election of Donald Trump as the forthcoming President of the United States. His bold, pro-crypto rhetoric and proposals for his upcoming term have had a monumental influence on market sentiment and have hugely boosted confidence in the crypto market. 

For example, Trump’s endorsement of blockchain innovation, “America-first” policies regarding crypto mining, and his suggestion of creating a national Bitcoin strategic reserve —similar to the U.S.’s strategic oil reserve— signalled a major shift in government attitudes towards digital assets. His appointment of cryptocurrency-friendly advisors and regulators, such as David Sacks and Paul Atkins, has led to greater optimism for a favorable regulatory environment. 

Institutional interest is also growing, with major investments from companies such as MicroStrategy —which has also been included in the Nasdaq 100 index— and significant inflows into crypto ETFs. This institutional backing lends cryptocurrencies great credibility, which has increased a sense of FOMO (fear of missing out) among investors and helped increase momentum, attracting even more intrigue and driving up demand. 

What is Bitcoin dominance?

Bitcoin dominance refers to the proportion of Bitcoin’s market capitalization relative to the total market capitalization of all cryptocurrencies. But Bitcoin’s dominance also has an impact on other altcoins across the market, acting as a magnet that pulls investors into the broader cryptocurrency space. When Bitcoin’s dominance rises, it often suggests renewed confidence in the crypto market, and tends to increase liquidity, as investors are encouraged to diversify their crypto holdings into other large- and medium-cap coins, such as Ethereum (ETH), Solana (SOL) or Dogecoin (DOGE), as well as smaller altcoins. 

Crypto is going up. What does this mean for crypto utility and crypto payments?

As Bitcoin and other cryptocurrencies soar to new heights, their growing market capitalization and mainstream adoption are having a significant impact on utility, and by extension, the adoption of crypto payments. The rise in positive rhetoric surrounding cryptocurrencies from major financial institutions and governments is bolstering the perception of crypto as more than just an investment asset, but also as a means of exchange and store of value. While the crypto market remains volatile, the adoption of cryptocurrencies around the world specifically for use as payment is accelerating.

According to a recent report by PwC, 75% of surveyed companies plan to accept cryptocurrency payments in the next two years, indicating a shift in how businesses perceive digital currencies. At ForumPay, we have also seen how companies and merchants across sectors such as hospitality, precious metals and luxury vehicles have adopted our crypto payments gateway in 2024 to offer their customers fast, convenient, flexible, cross-border crypto payments, allowing them access to millions of consumers eager to use this innovative payment option. 

With ForumPay, merchants are able to avoid crypto volatility, safe in the knowledge that our crypto payments reflect exactly the fiat price of their products and services. ForumPay is also fully wallet-agnostic, meaning consumers can make a payment in any popular crypto from any wallet. What’s more, our open API provides a simple means to integrate ForumPay into any current payment ecosystem, and we are already pre-integrated into many popular ecommerce shopping carts, such as WooCommerce, Drupal or Magento. 

As crypto adoption continues to rise, merchants need to be proactive about incorporating crypto payments into their workflow. Investors with bloated crypto holdings are looking for ways to diversify their assets in the smoothest and most convenient way possible. Crypto payments with ForumPay can offer just that. So, if you are a business and have yet to start accepting payments in cryptocurrency, book a meeting with our crypto payment experts to find out how. Alternatively, visit forumpay.com for more information.