🔍 Weekly Cryptocurrency Market Update
This article presents a brief overview of the significant events that occurred this week in the cryptocurrency landscape. Being aware of the current developments in the market is crucial for making informed decisions. Let’s delve into the details.
US Market Overview for the Week
The S&P 500 index in the US has decreased from $6,050.84 to $5,930.84, reflecting a decline of 2.02%. Similarly, leading markets across Europe, China, Japan, India, South Africa, and Australia have also experienced drops this week, with Europe seeing a decrease of 2.04% and China dipping by 0.65%.
This week, the US Federal Reserve implemented a 25 basis point reduction in its interest rates, adjusting the borrowing costs to the 4.25% to 4.5% range. Notably, the US GDP Growth Rate QoQ saw a slight uptick from 3% in Q2 to 3.1% in Q3. Additionally, Initial Jobless Claims in the US plummeted to 220,000 in the second week of December, down from 224,000 the previous week. The Core PCE Price MoM index in the US also fell to 0.1% in November from 0.3% in October.
Several crucial indices were released this week, such as the NY Empire State Manufacturing Index, which declined from 31.2 points to just 0.2 points in December. Conversely, the S&P Global Composite PMI Flash index rose from 54.9 to 56.6, indicating growth. The Manufacturing PMI Flash declined from 49.7 to 48.3, while the Services PMI Flash index surged to 58.5 from 56.1. Retail Sales MoM fell from 0.5% in October to 0.7% in November. Meanwhile, the Industrial Production MoM index improved slightly from -0.4% to -0.1%. The Business Investors MoM index in the US increased to about 0.1% in October, and the NAHB Housing Market Index remained steady at 46 points in December.
In terms of crude oil, the API Crude Oil Stock Change reduced significantly to 4.7 million barrels in the first week of December, compared to 1.232 million barrels in the last week of November. The Housing Starts index slipped to 1.29 million units in November, a decrease from 1.31 million in October. However, Existing Home Sales in the US saw an increase, jumping to 4.15 million in November from 3.96 million in October.
This Week’s Cryptocurrency Market Overview
The total market capitalization of cryptocurrencies has faced an 8.2% decline this week. The altcoin market cap has dropped from $1.55 trillion to $1.39 trillion. Excluding Bitcoin and Ethereum, the crypto market cap has decreased from $1.07 trillion to $969.31 billion. The total capitalization of cryptocurrencies beyond the top ten has reduced from $406.93 billion to $348.32 billion.
Bitcoin Price Movements
On December 16, Bitcoin was valued at $106,058.18, but by Thursday, it had plummeted to a low of $97,461.38. At one point on Friday, the price sank to $92,198.03 before a slight recovery, closing around $97,812.27. Notably, the market witnessed a decline of at least 7.77% from December 16 to 20.
Ethereum Price Analysis
As of December 16, Ethereum was priced at $3,988.87. By December 19, the price fell sharply to a low of $3,415.69, a significant 14.36% correction. The price further dropped to $3,108.75 on December 20, but buyers managed to close it at $3,471.16. Over the span of December 16 to 20, Ethereum’s market situation saw a decline exceeding 12.97%.
Weekly Performance of Leading Cryptocurrencies
Throughout the past week, most of the leading ten cryptocurrencies reported declines. Dogecoin experienced the steepest drop at 19.1%, followed by Cardano and Solana with falls of 13.4% and 12.5%, respectively. Ethereum declined by 10.8%, while Bitcoin, XRP, and BNB showed decreases of 3.9%, 6.0%, and 5.6%, respectively.
Trending Topics in Cryptocurrency
At this moment, significant areas of interest include Binance HODLer Airdrops, Circle Ventures Portfolio, Binance Launchpool, Binance Labs Portfolio, and Coinbase Ventures Portfolio, with Binance HODLer Airdrops showing an impressive seven-day change of +181.3%.
Notable cryptocurrencies trending this week include Hyperliquid, LUKSO, Pudgy Penguins, Ethena, and Sui, with Hyperliquid leading the pack with a remarkable seven-day change of 54.6%.
Overview by Cryptocurrency Category
In the past week, various categories within the cryptocurrency realm exhibited declines. Smart Contract Platforms fell by approximately 6.7%, while Layer 1 dropped by 6.0% and Proof of Work declined by 4.4%. The Proof of Stake sector witnessed a 11.6% decrease and Centralised Exchange Tokens saw a reduction of 4.1%. Other categories such as Decentralised Finance and NFT experienced drops of 9.9% and 21.4%, respectively.
On a brighter note, Stablecoins managed a slight growth of 0.8%, while Perpetuals surged by 35.9%. Binance HODLer Airdrops, in particular, stood out with a remarkable increase of 181.3% during the same period.
🔥 Hot Take: Weekly Roundup
This week has proven to be challenging for global financial markets, reflecting downturns across the US, Europe, China, Japan, and India. The cryptocurrency market has also faced an 8.2% decline, with significant losses seen across Bitcoin, Ethereum, and other major digital assets. The US Federal Reserve’s decision to cut interest rates by 25 basis points and the dollar’s strength against key currencies underscore the complexity of the current economic landscape. Overall, navigating through this week has been a strenuous task for both traditional and digital asset holders.
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