The crypto market hits $3.9 trillion, driven by a USA-Japan trade deal. Bitcoin consolidates at $120,000, while PENGU shines with a remarkable +21.6%. What are the prospects for this surge in 2025 ?
The crypto market is once again generating investor enthusiasm, with a total capitalization approaching $4 trillion. This surge is largely explained by recent geopolitical developments and innovations in the crypto industry.
After breaking through the $120,000 threshold, Bitcoin is looking to consolidate its gains. Meanwhile, altcoins like Pudgy Penguins (PENGU) are shining, reaching record levels. What are the main drivers behind this crypto market upturn ?
The total crypto market capitalization has climbed $33 billion over the past 24 hours, reaching nearly $3.9 trillion. This progression is primarily attributed to two key elements :
President Trump announced a historic trade agreement with Japan, involving a $550 billion investment in the United States and improved market access for American products. This agreement is perceived as a potential catalyst for cryptocurrency prices. Historically, successful trade agreements with major economies have often stimulated growth in the crypto market.
Jack Dorsey’s payment company, Square, has begun onboarding merchants to accept Bitcoin via its point-of-sale terminals, using the Lightning network for transaction settlements. This initiative marks a significant step toward better Bitcoin integration in the retail industry.
These two positive developments, combined with the bullish momentum of altcoins, have propelled the crypto market capitalization close to the symbolic $4 trillion mark. However, investors will need to remain vigilant against the risk of profit-taking that could trigger a correction.
After breaking through the $120,000 resistance, Bitcoin (BTC) is currently stabilizing below this level. Although it hasn’t managed to maintain this as support, this movement has sparked optimism among investors, suggesting additional upside potential.
Traders now aim to see Bitcoin exceed $122,000. With stabilizing market conditions, the king of cryptocurrencies could regain momentum and continue its ascent in the coming days. However, intensifying selling pressure could lead to a correction to $115,000, threatening the short-term bullish thesis.
Among altcoins, Pudgy Penguins (PENGU) stands out with an impressive 21.6% gain over the last 24 hours. The meme cryptocurrency is approaching its previous all-time high of $0.0469, generating enthusiasm among investors.
The Parabolic SAR indicator suggests that PENGU’s upward trend should continue. However, if holders decide to take profits, the altcoin could undergo a correction by dropping below the $0.0400 support. Such a development would call into question PENGU’s short-term bullish outlook.
Nevertheless, PENGU seems well-positioned to reach new ATHs
The crypto market appears well on its way to reaching $4 trillion in capitalization, driven by positive macroeconomic factors and increasing Bitcoin adoption. Although correction risks remain, investor enthusiasm is palpable, suggesting new heights for the crypto market in the near future.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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