Keeping abreast of the latest trends in the financial and cryptocurrency markets is crucial for making informed investment decisions. This week’s market analysis offers a deep dive into the significant developments across various sectors. Let’s explore the details and see how these changes might affect your investment strategy.
US Market Weekly Update
This week, the US market experienced a notable decline of 1.32% over the past seven days. Most major markets across the globe, such as China, Japan, India, and South Africa, have also mirrored this bearish trend. China observed a fall of 1.05%, Japan by 1.79%, India by 2.51%, and South Africa by 1.34%. Contrarily, Europe and Australia bucked the trend with Europe seeing a 1.49% increase and Australia a 0.40% rise.
During this period, key economic indicators in the US were released, providing insights into the market’s current state. The US S&P Global Composite PMI Final for December 2024 saw an increase from 54.9 to 55.4, marking the fastest growth since April 2022. Similarly, the US S&P Global Services PMI Final rose from 56.1 to 56.8, the highest since March 2022.
Factory orders in the US dropped to -0.4% in November from a previous 0.5%, against an anticipated decline of 0.3%. However, US exports rose from $266.309 billion to $273.4 billion, and imports increased from $339.923 billion to $351.6 billion. US Initial Jobless Claims saw a reduction from 211K to 201K as of January 4, 2025. Additionally, US Non-Farm Payrolls surged from 212K to 256K, surpassing expectations of a 160K drop, and the unemployment rate decreased from 4.2% to 4.1% in December.
The US dollar strengthened against major currencies this week, with the Euro gaining 0.62%, the Chinese Yuan 0.17%, the Japanese Yen 0.35%, and the Indian Rupee 0.47%.
Crypto Market Scenario This Week
The cryptocurrency market faced a challenging week, with the total market capitalization declining by 5.86% over the past seven days. The altcoin sector was hit harder, experiencing an 8.84% drop. When excluding the top ten cryptocurrencies, the sector’s market cap fell approximately 11.25%, highlighting a broader downturn.
Bitcoin Market Overview
Bitcoin reached a peak at $102,195.06 on Monday, January 6. However, the market corrected significantly between January 7 and 9, leading to a 9.45% drop. On January 10, buyers attempted to regain control, resulting in a modest 2.34% growth. Currently, Bitcoin is priced at $94,289.79, reflecting an 8.21% decrease from its weekly high.
Ethereum Market Scenario Analysis
Ethereum also saw volatile movements, peaking at $3,743.68 on January 6. A sharp decline of 8.2% occurred the following day, with the market hitting a low of $3,159.43 on January 9. Despite efforts by buyers on the last business day of the week, resulting in a 1.46% uptick, Ethereum’s price remains at $3,244.47, which is 13.32% below its weekly peak.
Top Ten Cryptos: Weekly Performance Review
During the second week of January 2025, none of the top ten cryptocurrencies demonstrated a bullish momentum. Bitcoin’s value decreased by 3.8%, and Ethereum saw a 9.7% drop. Other notable declines include XRP at 4.9%, BNB at 3.4%, Solana at 14.2%, Dogecoin at 14.7%, and Cardano at 14.8%.
Trending This Week
Currently, the most trending categories are Binance Alpha Spotlight, Pump.fun Ecosystem, DeFAI, AI Meme, and Solana Meme. Over the last 24 hours, DeFAI has shown significant growth, with a 53.9% increase. Among trending cryptocurrencies, ANDY, MEOW, Virtuals Protocols, Hey Anon, and aixbt by Virtuals lead the pack. Notably, Hey Anon surged by an impressive 260.1% over the past week.
Crypto Category Overview
In the last seven days, the market cap of various crypto categories witnessed declines: currency by 3.65%, chain by 9.37%, meme coin by 15.8%, DeFi by 14.1%, blockchain infrastructure by 13%, blockchain services by 7.74%, GameFi by 11.3%, NFT by 13.2%, and Social by 5.37%. Conversely, the Stablecoin market cap increased by 0.31%, and CeFi saw a rise of 1.98%.
Overall, this week’s market analysis highlights significant fluctuations across both traditional financial markets and the cryptocurrency sector. Investors should continue monitoring these trends closely to navigate the dynamic landscape effectively.
