Keeping abreast of the latest developments in the cryptocurrency and global financial markets is crucial for informed decision-making. This week has been eventful, and we’ve witnessed several significant movements across markets. Let’s delve into the details and understand what has transpired.
US Market Weekly Update
The US financial markets have experienced a downturn, with a notable fall of 1.32% over the past week. The bearish trend was not limited to the US alone; it extended to other major markets worldwide, sparing only Europe and Australia. Specifically, China saw a decline of 1.05%, Japan fell by 1.79%, India by 2.51%, and South Africa by 1.34%. Meanwhile, Europe bucked the trend with a rise of 1.49%, and Australia experienced a modest gain of 0.40%.
This week, several key US economic indicators were released. The US S&P Global Composite PMI Final increased from 54.9 to 55.4 in December 2024, marking the fastest growth since April 2022. Similarly, the US S&P Global Services PMI Final rose from 56.1 to 56.8, achieving the highest increase since March 2022. However, US Factory Orders decreased to -0.4% in November, defying predictions of a smaller 0.3% decline. On a positive note, US Exports increased from $266.309 billion to $273.4 billion, while Imports grew from $339.923 billion to $351.6 billion.
Employment data revealed that Initial Jobless Claims dropped from 211K to 201K on January 4, 2025, and Non-Farm Payrolls surged from 212K to 256K, surpassing expectations of a 160K decline. Additionally, the US Unemployment Rate improved slightly, decreasing from 4.2% to 4.1% in December.
This week, the US dollar exhibited strength against major currencies, including the Euro, Chinese Yuan, Japanese Yen, and Indian Rupee. The Euro rose by around 0.62%, the Yuan by 0.17%, the Yen by 0.35%, and the Rupee by 0.47% against the dollar.
Crypto Market Scenario This Week
The cryptocurrency market has faced a challenging week, with the total market capitalization dropping by 5.86%. The altcoin market, in particular, suffered a notable decline of 8.84%. Excluding the top ten cryptocurrencies, the market cap has decreased by approximately 11.25%, indicating widespread bearish sentiment in the crypto sector.
Bitcoin Market Overview
Bitcoin experienced significant volatility this week. On January 6, it reached a peak of $102,195.06. However, between January 7 and 9, the market encountered a sharp correction of 9.45%. Buyers attempted to regain control on January 10, resulting in a slight recovery of 2.34%. Currently, Bitcoin is priced at $94,289.79, which is about 8.21% below the week’s peak.
Ethereum Market Scenario Analysis
Ethereum also faced a turbulent week. It peaked at $3,743.68 on January 6 but experienced a substantial single-day decline of 8.2% the following day. By January 9, Ethereum had hit a low of $3,159.43. Despite a modest recovery of 1.46% on the week’s final trading day, Ethereum is currently valued at $3,244.47, approximately 13.32% below the week’s high.
Top Ten Cryptos: Weekly Performance Review
In the second week of January 2025, none of the top ten cryptocurrencies have exhibited a clear bullish trend. Bitcoin declined by 3.8%, while Ethereum saw a more significant drop of 9.7%. Other notable declines include XRP by 4.9%, BNB by 3.4%, Solana by 14.2%, Dogecoin by 14.7%, and Cardano by 14.8%.
Trending This Week
Currently, the top five trending categories are Binance Alpha Spotlight, Pump.fun Ecosystem, DeFAI, AI Meme, and Solana Meme. Notably, DeFAI has surged by 53.9% in the last 24 hours. Among the trending cryptocurrencies, ANDY, MEOW, Virtuals Protocols, Hey Anon, and aixbt by Virtuals have gained significant attention. Hey Anon, in particular, has recorded an impressive increase of 260.1% over the past week.
Crypto Category Overview
In the past seven days, various crypto categories have experienced fluctuations. The market cap of the currency category declined by approximately 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%. On the contrary, Stablecoin and CeFi categories showed resilience, with market caps increasing by 0.31% and 1.98%, respectively.
As we continue to monitor these financial landscapes, staying informed about the latest trends and data is essential for making informed investment decisions. The market dynamics are ever-evolving, and understanding these changes can provide valuable insights into future opportunities and challenges.
