The crypto market is going up today, Dec. 12, with Bitcoin and top altcoins being in the green. Bitcoin held steady at $92,400, while other top tokens like Ethereum, Solana, Hyperliquid, AAVE, and Zzcash all soared by at least 3%. Notably, crypto prices are rising while top tech names like Nvidia, Oracle, and Broadcom are sinking.
Why the Crypto Market is Going Up Today
The crypto market is rising today as investors cheer key tailwinds in the industry. One of them came from the Securities and Exchange Commission (SEC), which allowed DTCC to start offering tokenized stocks, with Paul Atkins predicting that US markets will move on-chain.
At the same time, the agency said it will host a roundtable on privacy tokens on Monday to bring the industry mainstream. This explains why top privacy tokens like NIGHT, Monero, and Zcash prices were among the best-performing tokens.
The crypto market is also rising, as key ETFs continue to attract inflows. While Bitcoin and Ethereum ETFs saw outflows, top altcoins like Solana, XRP, Chainlink, and Hedera Hashgraph also continued to see inflows this week. XRP ETFs added over $10 million in inflows, while Solana funds had $11 million in inflows.
More data shows that the futures open interest rose on Friday, while liquidations plunged. Open interest rose by 1.2% to $134 billion, while liquidations dropped by 50% to $257 million. Also, the long/short ratio rose to 50.16%/49.84%.
In most cases, crypto prices rise when futures open interest increases, as this usually leads to more demand. Bitcoin’s open interest rose to $60 billion from this week’s low of $56 billion.
The crypto market is also rising after the Federal Reserve slashed interest rates by 0.25% on Wednesday and initiated quantitative easing, which will see it buy short-term bonds worth $40 billion a month.
Meanwhile, the Crypto Fear and Greed Index has moved to the fear zone of 29 from last month’s low of 8. It is common for crypto prices to rebound when the index is crawling back, a move that will accelerate as it moves into the neutral and greed zones.
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Why Oracle, Nvidia, and Broadcom Stocks are Falling
The ongoing crypto market rally has coincided with a decline in technology stocks, including top blue-chip companies like Nvidia, Broadcom, and Oracle. Futures tied to the Nasdaq 100 and S&P 500 indices dropped gradually.
The ongoing crash was triggered by Oracle’s latest earnings report, which showed that while its business is growing, its costs are escalating.
As a result, the company’s credit default swaps (CDS) rose to the highest level since 2008, its costs rose, and its free cash flow turned negative for the first time in over 20 years. CDS are financial instruments that act as an insurance policy against their bonds.
Oracle’s crash has raised concerns about the AI industry, which analysts believe is about to burst. This explains why Broadcom’s stock price also tumbled 5% even as the company reported strong financial results, with revenue rising 18%.
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