Major cryptocurrency tokens were trading higher on Tuesday ahead of the US Federal Reserve’s policy decision tomorrow.

Bitcoin was up 1.94% at $43,409, while Ethereum rose 1.8% to $2,305. Meanwhile, the worldwide cryptocurrency market capitalization increased by 2.3% to roughly $1.67 trillion in the last 24 hours.

Major events, such as the Fed’s interest rate decision and US January unemployment rate statistics, might have an impact on market sentiment in the following days.

If the widely anticipated rate decrease is finally announced, the bull-bear tug of war that has been going on for the past few weeks may finally see the bull emerge victorious.

Bitcoin surpassed $43,000 on optimistic enthusiasm fueled by fading grayscale selling pressure and new bullish wagers. Grayscale’s reduced BTC transfers to exchanges, together with projections for new long positions above $43,000, point to a probable surge to annual highs beyond $50,000.

Positive aspects include dropping GBTC sales, rising US stock markets, and Google’s Bitcoin ETF ad support. However, the impending Fed meeting poses a concern because good US economic data may delay rate reduction, thereby supporting the US currency and dampening crypto markets.

Other prominent altcoins increased in value during today’s exchange. Solana and Cardano gained 6.5% and 7.6%, respectively. Dogecoin, Chainlink, Polygon, and Shiba Inu all saw 2-3% gains. BNB, XRP, Internet Computer, and Avalanche are also up.

Bitcoin, the world’s largest cryptocurrency, has seen its market capitalization increase to $850 billion in the last 24 hours. According to CoinMarketCap, Bitcoin presently has a dominance of 51.15%. Bitcoin volume increased by 42% in the last 24 hours, reaching $22.4 billion.

To continue its pace toward $45,000, BTC must first breach and hold $43,500. We foresee a surge higher in the coming days, with Bitcoin reaching beyond $44,000 during this rally.

Bitcoin has been on a sustained rise for the previous week, gaining more than 12% while maintaining the trend line support of $38,500. Analysts estimate that this increase is largely owing to the Fed’s expectation to continue its rate pause, which will be disclosed this week.

Quick view on the cryptocurrency price on December 26: The worldwide market capitalization was $1.68 trillion.

Bitcoin (BTC), the world’s oldest and most valuable cryptocurrency, managed to stay over the $43,000 level on Christmas Day. Popular altcoins, such as Ethereum (ETH), Solana (SOL), Ripple (XRP), Litecoin (LTC), and Dogecoin (DOGE), suffered slight losses. With a 24-hour rise of more than 16 percent, Quant (QNT) emerged as the greatest gainer of the bunch. Helium (HNT) was also the largest loser, falling more than 13% in a 24-hour period.

At the time of writing, the worldwide crypto market valuation was $1.68 trillion, a 1.31 percent drop in a 24-hour period.

Bitcoin Price Today
According to CoinMarketCap, the price of bitcoin was $43,162.01, a 1.59 percent drop in a 24-hour period.

Ethereum Price Today
At the time of writing, the price of ETH was $2,277.12, representing a 1.68 percent 24-hour loss.

Dogecoin Price Today
DOGE fell 2.10 percent in a 24-hour period, according to CoinMarketCap data, and is now worth $0.09248.

Litecoin Price Today
Litecoin fell 2.09 percent in a 24-hour period. It was trading at $71.30 at the time of publication.

Ripple Price Today
The price of XRP was $0.6156, representing a 0.92 percent decline in a 24-hour period. According to WazirX, the current price of Ripple is Rs 53.70.

Solana Price Today
Solana was trading at $111.91, a 3.44 percent decrease over the last 24 hours.

Bitcoin is hovering around the $35,500 mark as investors await the October NFP report from the United States. The Nonfarm Payrolls figure is important for market participants because it can considerably impact traders’ expectations of whether the US central bank would maintain interest rates higher for a longer period of time, or even raise rates further.

Bitcoin dealers anticipate a tumultuous market with the release of the US NFP report

The release of the US NFP is critical for market participants in determining the direction of Bitcoin’s price trend. In response to recent macroeconomic developments, BTC has witnessed volatility; the US Federal Reserve’s decision to keep interest rates unchanged aided Bitcoin’s price surge. On Binance, BTC remained over the $35,500 mark.

The US Federal Reserve has repeatedly said that the decision to raise interest rates is data-driven. This suggests that the Nonfarm Payrolls report could influence whether interest rates are kept higher for longer or raised before the end of 2023.

The market anticipates that the US economy added 180,000 nonfarm payrolls in October. The September report came in roughly double the market’s estimates, with 336,000 new jobs added.

In the case of a positive surprise in October’s NFP data, the price of bitcoin may fall. Traders can expect BTC to rebound from the fall in the short term, as market mood was mostly driven by the potential of a spot Bitcoin ETF clearance by the US Securities and Exchange Commission (SEC) throughout October.

Bitcoin Price Today
If the employment data outperforms forecasts, the price of bitcoin is expected to fall. Bitcoin price is anticipated to find support at the 10-day Exponential Moving Average (EMA) at $34,028 as shown in the BTC/USDT price chart below. BTC may rebound from this level and restart its upward trajectory.

Once the BTC price restarts its advance, the lower border of the Fair Value Gap (FVG) between $36,671 and $37,670 is anticipated to act as barrier for the asset.

Market capitalization as a term has also entered cryptocurrency investing conversations over time. Its definition and application in cryptocurrencies are not exactly the same as in the traditional stock market. Cryptocurrency market cap is broadly defined as a metric that measures the total value of a particular cryptocurrency in the current market.

The market cap of a cryptocurrency is determined by dividing the total coins that have ever been mined by the price of one coin at a particular time. Market capitalization can be used as a valid measure of how stable an asset is likely to be.

This feature provides a brief introduction to cryptocurrency market capitalization, why it’s important to understand, and what it means for investors.

What is cryptocurrency market cap and how does it work?

Since the inception of Bitcoin, the first cryptocurrency, more and more cryptocurrency projects have entered the scene, each promising a different benefit or use to investors. Some altcoins boast unmatched transaction speeds, while others claim to offer the lowest fees.

Other coins, such as the privacy-focused altcoin Monero (XMR), offer airtight security and complete privacy. XMR transactions made through a specially encrypted Monero wallet are said to be completely anonymous and untraceable, making Monero an ideal coin for users with extreme cybersecurity concerns.

There are currently thousands of active cryptocurrency projects available for traders to invest in. Naturally, each of these coins will be valued differently in the market, and this is what cryptocurrency market capitalization is meant to measure.

The market capitalization of a particular coin is meant to give investors an idea of ??how big the project currently is and how well it is doing.

The market capitalization of a cryptocurrency is calculated by multiplying the current market price of the coin by the total circulating supply. For example, if a certain coin is trading at $5 per unit and there are approximately 10,000,000 coins in circulation, its market cap would be $50,000,000.

Many cryptocurrency experts consider market capitalization to be the most important factor in determining a cryptocurrency’s viability as an asset. There are now a number of websites and online indexes that calculate and track market capitalization for various cryptocurrencies, as well as other important financial metrics. These sites allow crypto investors to track the dominance and popularity of their chosen coins.

Why does market capitalization matter?

The market capitalization of a crypto project can provide valuable insight into the relevance of that project, especially for investors looking to gauge the popularity of a particular coin over the long term.

For example, most cryptocurrency experts will agree that coins with large capitalizations above $10 billion are relatively safe investments. Investing primarily in such coins is usually considered a conservative strategy, as these cryptocurrencies are likely to be less unpredictable investments than other coins.

However, it is worth noting that even the most stable cryptocurrencies will still be more volatile in terms of their value than traditional investment products such as stocks or bonds.

Mid-cap cryptocurrencies are those with a market capitalization between $1 billion and $10 billion. Unlike large-cap cryptocurrencies, these cryptocurrencies are typically much more volatile, but may have more upside potential. Meanwhile, small-cap cryptocurrencies are those with a market capitalization of less than $1 billion. They are often subject to extreme price volatility, with their value often rising or falling significantly within hours.

Thus, small-cap cryptocurrencies are considered the riskiest investments one can make in cryptocurrencies, even though their growth potential is expected to be good in the short term.

How can market capitalization affect your investment strategy?

One viable way investors can apply their knowledge of market capitalization is by following a market capitalization weighted investment strategy. Under this strategy, the amounts that traders invest in their chosen cryptocurrencies are proportional to the current market capitalization of those coins.

To illustrate, this means that an investor looking to put $100 into total crypto investments should allocate the largest portion of that amount to coins with the largest market capitalization and smaller portions to other less popular cryptocurrencies.

However, it is important for novice crypto investors to keep in mind that the market is prone to dramatic price swings, even for large-cap coins. Therefore, the market capitalization of even the biggest and most popular coins is constantly changing. Since cryptocurrency is a relatively new asset compared to traditional assets such as stocks, there are currently few ways to predict how a particular coin’s value or growth trajectory is likely to change over time.

The unpredictability of cryptocurrencies is the main reason why financial experts encourage new traders to invest cautiously even in large crypto projects. It is always a good idea for novice investors to do their due diligence before committing to any investment and only put in as much money as they can afford to lose.