Key Insights:
Crypto markets continue to suffer after the Fed's hawkish guidance.
Market sentiments have dropped to 54 and seem barely bullish now.
The altcoin market index crashed to 48, the lowest this month.
Donald Trump appointed Bo Hines, a former footballer, to the Crypto Advisory Council.
ETFs show major outflows, with Ethereum ETFs indicating worse outflows this week.
The crypto markets have seen their losses mount further after prices corrected even more over the weekend. Crypto market cap crashed yesterday to the low of $3.13 trillion before recovering to $3.3 trillion at press time.
Top 10 Cryptos on 23 Dec 2024
Among top cryptocurrencies, Bitcoin saw one of the wildest swings last week. After making a high of $108k, it collapsed to $93.7k levels yesterday, taking the markets on a roller coaster ride along with it. At press time, Bitcoin has
Ethereum, on the other hand, saw its losses extend further. It also wiped out all the gains that it had made this month. The price of ETH dropped to $3217 levels last week. At press time ETH had managed to recover till $3308 levels. However, it's market dominance had shrunk to 12.1%.
Among the top altcoin trio, Solana had crashed to $184 levels, BNB had maintained its price at $662, while XRP was able to pause its fall after a news flow.
Memecoins had sent their worst time last week.
Dogecoin had crashed to $0.31 (33% crash from 2024 high) levels while Shiba Inu dipped to $0.000021, erasing all of their recent gains. Solana memecoins too their losses mount up to 30% this week.
However, despite bad markets, NFT-meme coin Pudgy Penguins secured a phenomenal 437% rally this week.
The most resilient crypto among all the altcoins seemed to be Chainlink that had still maintained its price above critical resistance levels. At press time LINK was trading at $22.8 levels. If a recovery rally takes shape in the markets, we assume LINK would be the fastest to grow due to strong fundamentals, new business successes, and a near monopoly in its market.
Ripple was confirmed to have contributed $5 million to Trump's Inaugural Fund, along with Coinbase, Ondo Finance, and Kraken Exchange ($1 million each). Donors will be able to attend Trump's Inaugural Ball and meet members of the Trump cabinet.
Metaplanet has reportedly bought 620 Bitcoins while the markets corrected. The purchase was made at an average price of $96k. Metaplanet has been a top Bitcoin buyer following MicroStrategy's approach.
With the ultra cheap zero interest rate loans from its native country Japan, the company has the ability to outrun even MicroStrategy in the long run.
Donald Trump has nominated 29-year-old Bo Hines to his council of advisors. Hines will assume the role of Digital Assets advisor. Hines is a former footballer and a Republican politician since 2021.
From highly bullish (80) last week, the Crypto Fear and Greed Index has fallen to the levels of 54, barely clinging to the bull markets. The crash in the sentiments came after political uncertainties in the crypto markets and the Fed's decision to keep rate cuts at a minimum in 2025.
Crypto Fear and Greed Index on 23 Dec 2024
The altcoin index, too, dropped to 48, signaling a potential Bitcoin dominance in the current markets. This reversal from a strong altcoin season(87) earlier this month to the current scenario is mostly due to the major correction in altcoin. Altcoin markets find it difficult to survive a low-liquidity scenario (in 2025) as opposed to Bitcoin, which has access to institutional funds.
Altcoin Season Index on 23 Dec 2024
Bitcoin ETF data from last Friday shows that the outflows have slowed down to $277 million from $671 million despite Bitcoin holding its price above $95k. However, the upcoming trend of inflows/outflows would be better identified after Monday's data which would show how customers have reacted to the weekend dip in BTC's price.
Ethereum ETFs on the other hand have seen their outflows intensify to $75 million on Friday as compared to $60 million a day go. We assume ETH ETFs will continue to see major outflows as Ethereum has dropped to $3300 levels, from $4000 within the last 14 days.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.