Weekly Cryptocurrency and Market Analysis: A Comprehensive Update
Staying informed about the latest developments in the financial and cryptocurrency markets is crucial for making informed decisions. This week has brought several significant changes across both sectors, and in this detailed update, we will explore these developments. Ready to dive in? Let’s get started!
US Market Weekly Update
This week, the US markets experienced notable shifts, highlighted by a decline in the S&P 500 index, which dropped from $6,050.84 to $5,930.84, reflecting a 2.02% decrease. This trend was not isolated to the US, as major global markets, including Europe, China, Japan, India, South Africa, and Australia, also experienced downturns. Europe saw a decline of 2.04%, while China slipped by 0.65%.
In a significant move, the US Federal Reserve reduced its interest rate by 25 basis points, setting borrowing costs between 4.25% and 4.5%. Meanwhile, the US GDP Growth Rate QoQ Final index saw a slight increase, rising from 3% in Q2 to 3.1% in Q3. The US Initial Jobless Claims index fell sharply to 220,000 in the second week of December, down from 224,000 in the first week. Additionally, the US Core PCE Price MoM index decreased to 0.1% in November from 0.3% in October.
Several other key indices were released this week. The NY Empire State Manufacturing Index plummeted from 31.2 points to 0.2 points in December. Conversely, the US S&P Global Composite PMI Flash index experienced a sharp increase, climbing from 54.9 to 56.6 in December. The S&P Global Manufacturing PMI Flash index decreased from 49.7 to 48.3, while the US S&P Services PMI Flash index surged to 58.5 from 56.1. Retail sales declined with the US Retail Sales MoM index dropping from 0.5% in October to 0.7% in November. However, the US Industrial Production MoM improved slightly from a contraction of 0.4% to 0.1%. The US Business Investors MoM index showed minimal growth, reaching approximately 0.1% in October. The US NAHB Housing Market Index remained stable at 46 points in December.
In energy markets, the US API Crude Oil Stock Change decreased to 4.7 million barrels in early December from 1.232 million barrels in late November. The US Housing Starts index fell to 1.29 million units in November from 1.31 million in October, while the US Existing Home Sales index rose to 4.15 million in November from 3.96 million in October.
The US dollar demonstrated strength against major currencies, including the Euro, Chinese Yuan, Japanese Yen, and Indian Rupee. Specifically, the Euro appreciated by 0.70%, the Yuan by 0.27%, the Yen by 1.78%, and the Rupee by 0.20%.
Crypto Market Scenario This Week
The cryptocurrency market faced significant challenges this week, with the total market capitalization declining by 8.2%. The altcoin market cap fell from $1.55 trillion to $1.39 trillion. When excluding Bitcoin and Ethereum, the total crypto market cap decreased from $1.07 trillion to $969.31 billion. Additionally, the market cap excluding the top ten cryptocurrencies declined to $348.32 billion from $406.93 billion.
Bitcoin Market Overview
Bitcoin experienced a volatile week, with its price beginning at $106,058.18 on December 16. By Thursday, the price had dropped to a low of $97,461.38, and on Friday, it reached a low of $92,198.03. However, by the close of the week, buyers had managed to push the price back up to approximately $97,812.27. Overall, the Bitcoin market declined by at least 7.77% between December 16 and 20.
Ethereum Market Scenario Analysis
Ethereum also faced a severe correction this week. Starting at $3,988.87 on December 16, the price fell to a low of $3,415.69 by December 19, marking a decline of 14.36%. On December 20, the price briefly dipped to $3,108.75 before closing at $3,471.16, resulting in an overall market slip of over 12.97% between December 16 and 20.
Top Ten Cryptos: Weekly Performance Review
The top ten cryptocurrencies saw widespread declines over the past week. Dogecoin led the losses with a 19.1% drop, followed by Cardano and Solana, which fell by 13.4% and 12.5%, respectively. Ethereum declined by 10.8%, while Bitcoin, XRP, and BNB experienced decreases of 3.9%, 6.0%, and 5.6%, respectively.
Trending This Week
Among the trending categories this week, Binance HODLer Airdrops, Circle Ventures Portfolio, Binance Launchpool, Binance Labs Portfolio, and Coinbase Ventures Portfolio emerged as the top five. Notably, Binance HODLer Airdrops exhibited the highest seven-day change, with an increase of +181.3%. In the realm of trending cryptocurrencies, Hyperliquid, LUKSO, Pudgy Penguins, Ethena, and Sui stood out, with Hyperliquid showcasing the highest seven-day change of 54.6%.
Crypto Category Overview
Various cryptocurrency categories displayed varying performance over the week. The Smart Contract Platform category declined by approximately 6.7%, Layer 1 by 6.0%, Proof of Work by 4.4%, and Proof of Stake by 11.6%. Centralized Exchange Token decreased by 4.1%, while Decentralized Finance fell by 9.9%. The Meme category experienced a significant drop of 16.9%, and Liquid Staking declined by 11.7%. Other categories, such as Crypto-Backed Tokens and Wrapped-Tokens, decreased by 8.7% and 8.6%, respectively.
Conversely, Stablecoins grew by 0.8%, Perpetuals by 35.9%, and Binance HODLer Airdrops by an impressive 181.3%. AI Agent Launchpad saw a modest increase of 2.2%, and the Virtuals Protocol Ecosystem expanded by 13.9%.
Conclusion
This week has been challenging for both traditional and digital asset markets. Global markets, including the US, Europe, China, Japan, and India, faced declines, accompanied by an 8.2% drop in the cryptocurrency market. Bitcoin, Ethereum, and other leading cryptocurrencies have experienced significant losses. The US Federal Reserve’s decision to cut interest rates by 25 basis points, coupled with the strengthening of the US dollar against major currencies, has further influenced market dynamics. Stay informed with Coinpedia’s Crypto Market Weekly Report—your go-to source for the latest market insights.
