What is driving the surge in cryptocurrency prices today and what it means for the market?

Bitcoin, the world's largest cryptocurrency by market value, traded slightly lower at $96,200 on Tuesday amid market volatility. As of 11:42 am, Bitcoin was down 0.1% at $96,158, after hitting a daily low of $94,482 and a high of $97,430.

Last week, the cryptocurrency experienced significant volatility, dipping to an intraday low of $90,770 on Wednesday.

"Analyzing the Surge: What's Driving the Rise in Cryptocurrency Prices for Bitcoin, XRP, and Chainlink?"

"Bitcoin remains range bound, holding just above $96,000. It experienced a 2% drop yesterday after reports of the US government transferring $2 billion worth of BTC to Coinbase, which created implied selling pressure," said Vikram Subburaj, CEO of Giottus.

"Despite strong performance in Bitcoin spot ETFs in November and continued accumulation by MicroStrategy, Bitcoin faces resistance at $98,000, with $94,600 serving as a key support level," Subburaj added.

Avinash Shekhar, Co-Founder and CEO of Pi42, noted, "Traders are paying a 17% annualized premium for leveraged BTC positions, signaling strong demand. Bitcoin options are trading at an 8% discount, indicating reduced hedging demand and a bullish outlook. Stability in futures markets is also evident, with funding rates for perpetual contracts remaining at a neutral 1.4%. With no immediate liquidation risk and a balanced leverage environment, these indicators suggest that Bitcoin is consolidating rather than weakening."

Meanwhile, other major cryptocurrencies posted notable gains, including XRP (14.5%), Solana (1.1%), BNB (2%), Cardano (15.4%), Avalanche (12.3%), Polkadot (14%), and Chainlink (29%).

"Altcoins are outperforming Bitcoin, with XRP, Cardano, and Avalanche delivering strong double-digit gains. XRP has posted a 87% weekly rally driven by bullish sentiment following WisdomTree's XRP ETF application," Subburaj said.

"Bitcoin dominance has slipped below 56%, reflecting a shift in market momentum. As Bitcoin stabilizes above $95,000, altcoins are likely to continue their strong performance against the leading cryptocurrency this week," he added.

In other news, MicroStrategy purchased 15,400 BTC last week at $95,976, bringing its total holdings to 402,100 BTC, now valued at $38.4 billion—an increase of 64%.