Share this
Week of November 26 - December 2, 2024
Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), announced that he will resign from his position on January 20, 2025, the same day that Donald Trump will be sworn in for his second term as President of the United States.
The SEC has decided to delay its decision on whether to approve the Franklin Templeton Crypto Index ETF until early 2025 in order to have more time to review various regulations. The index will be designed to represent the overall cryptocurrency market, rather than just tracking Bitcoin (BTC) movements.
BlackRock's IBIT fund has begun trading Bitcoin options as the first of its kind. Nathan McCauley, CEO and co-founder of Anchorage Digital, stated that this milestone not only symbolizes the growth of Spot Bitcoin ETFs but also provides institutional investors with more investment tools.
MicroStrategy has purchased an additional 51,780 BTC at an average price of $88,627, worth a total of $4.6 billion. This is the largest purchase in the company's history, representing more than 16% of their Bitcoin holdings, which now total 331,200 BTC.
Data from Arkham Intelligence reveals that Tether has minted $2 billion worth of USDT on the Ethereum blockchain and an additional $1 billion on the Tron blockchain. To date, Tether has created approximately $13 billion worth of USDT since November 8, 2024.
VanEck has issued a report projecting that the price of Bitcoin could reach $180,000 in this current bull cycle. The firm expects the U.S. FIT21 bill to support the cryptocurrency market and anticipates a proposed Stablecoin bill that will allow U.S. banks to issue their own stablecoins.
Technical Analysis
Bitcoin (BTC)
Bitcoin (BTC) has risen close to the $100,000 mark but is showing signs of weakening. The RSI index is starting to signal a bearish divergence, suggesting that the price may be in a consolidation phase, preparing for a potential pullback and subsequent upward movement. However, the upside potential appears somewhat limited, so caution is advised regarding potential selling pressure above the $100,000 level. The support level for this week is at $92,000.
- Support: 2,700,000 THB / 92,000 USD
- Resistance: 3,600,000 THB / 100,000 USD
Ethereum (ETH)
Ethereum (ETH) continues moving sideways, with a strong support level at $3,000 that should be able to absorb selling pressure. The overall trend still shows potential for further upward movement, with the first resistance target at $3,600. If the price retraces to the support level, it could present a good buying opportunity during the pullback.
- Support: 105,000 THB / 3,000 USD
- Resistance: 125,000 THB / 3,600 USD
Stellar (XLM)
Stellar (XLM) has delivered a massive 101.10% return over the past week, with a strong upward surge. Caution is advised as the price may be approaching a consolidation phase. The support level is at $0.42, which could present a potential buying opportunity. The resistance remains at the previous high of $0.65, and if this level is not broken, the price may continue to consolidate further
- Support: 15 THB / 0.42 USD
- Resistance: 23 THB / 0.65 USD
The Sandbox (SAND)
The Sandbox (SAND) has delivered 53.44% returns over the past week and shows signs of a potential bullish momentum. However, the price may experience a pullback in the short term. Watch for the support level at $0.60—if the price falls below this level, it's advisable to pause investments. If the price holds above this support, the next resistance target is the previous high of $0.90
- Support: 22 THB / 0.60 USD
- Resistance: 32 THB / 0.90 USD
Investment Trends
Bitcoin (BTC) has recently been flirting with the $100,000 mark, but the price has stabilized just below it. The Bitcoin Dominance Index is beginning to decline, prompting speculation in alternative coins (altcoins) across various groups, starting with Ethereum (ETH), followed by Blockchain Layer 1 projects, and more recently, the GameFi and Metaverse sectors. Meanwhile, meme coins are starting to underperform relative to the broader market after posting strong performances in pervious weeks.
This week, a key date to look out for is Tuesday, November 26, 2024, when the details of the most recent Federal Open Market Committee (FOMC) meeting will be released. It's important to monitor the committee's views on the overall economic outlook.
On Wednesday, November 27, 2024, GDP growth figures for Q3 will be disclosed, with the market expecting a growth rate of 2.8%. If the numbers show stronger-than-expected growth, this could impact the cryptocurrency market, as it may increase the likelihood of the U.S. Federal Reserve slowing its interest rate cuts. The latest Fed Watch Tool indicates a 52.7% chance the Fed will reduce rates by 0.25% at the next meeting, down from previous expectations. The chance of the Fed keeping rates unchanged is at 47.3%.
With positive sentiment from Gary Gensler’s resignation as SEC Chairman, which could be beneficial for altcoins, and Bitcoin's price stabilizing with limited upside, there is ongoing buying interest from Bitcoin ETFs. Traders might consider shifting their focus from meme coins to Blockchain Layer 1 and Layer 2 projects, as well as GameFi tokens, including Ripple (XRP), which has been embroiled in a long-running legal battle with the SEC.
However, there remains a risk that Bitcoin may undergo a pullback, as the RSI indicator is showing signs of a bearish divergence. It's advisable to keep at least 50% of funds in reserve for buying if the prices undergo further correction.
References
- https://cointelegraph.com/news/sec-chair-gary-gensler-step-down
- https://cointelegraph.com/news/sec-delays-franklin-templeton-crypto-index-etf-decision
- https://www.theblock.co/post/327306/spot-bitcoin-etf-options-trading-goes-live-what-traders-need-to-know
- https://cointelegraph.com/news/microstrategy-buys-52-k-bitcoin-4-6-billion-btc-new-highs
- https://cointelegraph.com/news/tether-mints-additional-3-billion-usdt-stablecoins
- https://cointelegraph.com/news/van-eck-180k-bitcoin-price-target-market-cycle
Disclaimers
- Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
- Past returns or performance of digital assets do not guarantee future returns or performance.
Remark: views, information, knowledge, and opinions are considered as content that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither the email nor the content presented constitute investment advice