Weekly Crypto Market Update: A Comprehensive Analysis

Keeping abreast of the latest changes in the cryptocurrency market is crucial for making informed decisions. This week, we witnessed significant movements across various financial landscapes. Let’s delve into the details and unpack the trends.

US Market Weekly Update

In the past week, the US financial markets have experienced notable fluctuations. The S&P 500 index recorded a decline, falling from $6,050.84 to $5,930.84, which marks a decrease of 2.02%. This downturn is mirrored in other major global markets, with Europe experiencing a drop of 2.04% and China a more modest decline of 0.65%.

Amidst these changes, the US Federal Reserve took a significant step by reducing interest rates by 25 basis points, setting the borrowing costs within the range of 4.25% to 4.5%. The US GDP Growth Rate QoQ Final index showed a slight improvement, rising from 3% in Q2 to 3.1% in Q3, signaling a steady economic expansion. Meanwhile, the US Initial Jobless Claims index witnessed a sharp decrease, dropping to 220K in the second week of December from 224K the previous week, suggesting a strengthening labor market.

Several other economic indices were released this week, offering further insights into market dynamics. The NY Empire State Manufacturing Index saw a dramatic decrease from 31.2 points to 0.2 points in December. Conversely, the US S&P Global Composite PMI Flash index showed a sharp rise, climbing from 54.9 to 56.6 in December. In contrast, the S&P Global Manufacturing PMI Flash index experienced a decline, falling from 49.7 to 48.3 in December. The US S&P Services PMI Flash index, however, surged to 58.5 from 56.1.

On the consumer front, the US Retail Sales MoM index declined from 0.5% in October to 0.7% in November. The US Industrial Production MoM showed a slight improvement, moving from -0.4% to -0.1%. The Business Investors MoM index recorded a growth of approximately 0.1% in October. The NAHB Housing Market Index remained unchanged at 46 points in December, indicating stability in the housing sector.

In the energy sector, the US API Crude Oil Stock Change decreased significantly to 4.7 million barrels in the first week of December from 1.232 million barrels the previous week. The US Housing Starts index showed a decline, slipping to 1.29 million units in November from 1.31 million in October. However, the US Existing Home Sales index saw an increase, rising to 4.15 million in November from 3.96 million in October.

On the currency front, the US dollar demonstrated strength against major currencies, including the Euro, Chinese Yuan, Japanese Yen, and Indian Rupee. The Euro appreciated by 0.70%, the Yuan by 0.27%, the Yen by 1.78%, and the Rupee by 0.20% against the US dollar.

Crypto Market Scenario This Week

The cryptocurrency market faced a challenging week, with the total market capitalization declining by 8.2%. The altcoin market cap dropped from $1.55 trillion to $1.39 trillion. Excluding Bitcoin and Ethereum, the total crypto market cap slipped from $1.07 trillion to $969.31 billion. Additionally, the market cap excluding the top ten cryptocurrencies fell to $348.32 billion from $406.93 billion.

Bitcoin Market Overview

Bitcoin experienced a tumultuous week, with its price fluctuating significantly. On December 16, Bitcoin was valued at $106,058.18. However, by Thursday, it had plummeted to a low of $97,461.38. The downtrend continued on Friday, with the price dropping to as low as $92,198.03 before recovering to around $97,812.27 by the close of the day. This series of movements resulted in a market decline of at least 7.77% between December 16 and 20.

Ethereum Market Scenario Analysis

Ethereum also faced a challenging week, with its price starting at $3,988.87 on December 16. By December 19, it had fallen to a low of $3,415.69, marking a significant correction of 14.36%. On December 20, the price further declined to $3,108.75 before closing at $3,471.16. Overall, the Ethereum market slipped by over 12.97% between December 16 and 20.

Top Ten Cryptos: Weekly Performance Review

The top ten cryptocurrencies witnessed declines in the past week. Dogecoin recorded the highest seven-day drop of 19.1%, followed by Cardano and Solana, which declined by 13.4% and 12.5%, respectively. Ethereum fell by 10.8%, while Bitcoin, XRP, and BNB experienced declines of 3.9%, 6.0%, and 5.6%, respectively.

Trending This Week

Among the trending categories this week are Binance HODLer Airdrops, Circle Ventures Portfolio, Binance Launchpool, Binance Labs Portfolio, and Coinbase Ventures Portfolio. Binance HODLer Airdrops showed the highest seven-day change, with an impressive increase of +181.3%.

In the realm of trending cryptocurrencies, Hyperliquid, LUKSO, Pudgy Penguins, Ethena, and Sui stood out. Hyperliquid led the pack with a notable seven-day change of 54.6%.

Crypto Category Overview

The past week saw varied performance across different crypto categories. The Smart Contract Platform category declined by around 6.7%, Layer 1 by 6.0%, Proof of Work by 4.4%, and Proof of Stake by 11.6%. Centralized Exchange Tokens fell by 4.1%, Decentralized Finance by 9.9%, and Meme coins by 16.9%. Liquid Staking dropped by 11.7%, Crypto-Backed Tokens by 8.7%, and Wrapped-Tokens by 8.6%. Decentralized Exchanges decreased by 3.8%, while Artificial Intelligence fell by 14.5%. DePIN saw a drop of 17.6%, NFT by 21.4%, Layer 2 by 13.1%, and GameFi by 20.7%. Yield Farming declined by 17.4%, Real World Assets by 8.9%, Layer 0 by 19%, Metaverse by 20.7%, Internet of Things by 20.1%, Gaming Utility Tokens by 19.5%, Gaming Governance Tokens by 19.9%, Liquid Staking Governance Tokens by 22.2%, and Bridge Governance Tokens by 18.6%.

Meanwhile, Stablecoins grew by 0.8%, Perpetuals by 35.9%, Binance HODLer Airdrops by 181.3%, AI Agent Launchpad by 2.2%, and Virtuals Protocol Ecosystem by 13.9%.

In conclusion, this week has been challenging for both traditional and digital asset markets. Global markets, including those in the US, Europe, China, Japan, and India, have faced declines, alongside an 8.2% drop in the cryptocurrency market. Bitcoin, Ethereum, and other major cryptocurrencies have registered losses. The US Federal Reserve’s decision to cut interest rates by 25 basis points adds another layer to the complex financial landscape. The US dollar’s strength against major currencies further underscores the dynamic nature of the current market environment.

Stay tuned to Coinpedia’s Crypto Market Weekly Report for more in-depth analysis and updates on the ever-evolving world of cryptocurrencies.