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Week of December 3-9, 2024
The Spot Ethereum ETF set a new daily inflow record on November 29, with $332.9 million, surpassing the previous record of $295.5 million set on November 11. BlackRock's Ethereum ETF recorded the largest inflows.
The Total Value Locked (TVL) of Ethereum’s Layer 2 networks reached a new all-time high—surpassing $51.5 billion—a 205% increase from the $16.6 billion set in November 2023. Arbitrum One and Base were the primary drivers of this TVL growth.
CCData revealed that stablecoin trading volumes from institutional investors have steadily increased, with the total market value rising by 9.94% in November, reaching $190 billion. This figure surpasses the previous all-time high of $188 billion in April 2022.
Analysts from Standard Chartered and Zodia Markets forecast that stablecoin usage will grow significantly, potentially reaching 10% of U.S. M2 money supply transactions and FX transactions in the future.
DefiLlama reported that the TVL in DeFi protocols reached $118.4 billion on November 25, marking the highest level in three years. This increase began since Donald Trump’s election victory, with renewed confidence towards clearer cryptocurrency regulations in the US. As a result, several DeFi tokens have surged by more than 50% last month.
MicroStrategy announced that it purchased another 55,000 BTC—worth $5.4 billion—between November 18 and 24, at an average price of $97,862 per BTC. This purchase was funded by the sale of stocks and debt instruments. The company now holds a total of 386,700 BTC at an average price of $56,761 per BTC.
US President-elect Donald Trump plans to empower the Commodity Futures Trading Commission (CFTC) to regulate certain digital assets instead of the U.S. Securities and Exchange Commission (SEC).
Technical Analysis
Bitcoin (BTC)
Bitcoin (BTC) has started moving sideways. Although it has not yet been able to test the $100,000 level, the RSI index continues to raise its lows, indicating that there is still momentum for potential upward movement. The target remains at $100,000. However, there is also a risk of a pullback. Support is seen at $90,000, which could be used as a buying opportunity.
- Support: 2,700,000 THB
- Resistance: 3,600,000 THB
Ethereum (ETH)
Ethereum (ETH) has started to move ahead of Bitcoin (BTC) in price. The trend is heading towards testing this year's previous high of $4,100. If it surpasses this level, it will aim for the all-time high of $4,900. In the short term, support is seen at $3,500, which could serve as a buying opportunity.
- Support: 104,000 THB
- Resistance: 140,000 THB
Algoland (ALGO)
Algorand (ALGO) posted impressive 72.87% returns last week, through a strong price surge. However, it’s advisable to wait for a pullback before buying rather than chasing the price at these high levels. Support is at $0.45, which is a good entry point. The first resistance target is at $0.60.
- Support: 13 THB
- Resistance: 21 THB
Ethereum Name Service (ENS)
Ethereum Name Service (ENS) posted 62.64% returns last week, a significant price increase. The overall trend hints at a positive momentum. Look for an opportunity to buy when the price falls back to support levels not lower than $35, which is its previous low. The resistance target is at $50.
- Support: 1,100 THB
- Resistance: 1,800 THB
Investment Trends
Bitcoin (BTC) generated 37% returns in November. Historically, years with a bitcoin halving still tend to show positive returns towards the end of the year. However, the trend may not be as strong as previous cycles, and the price could move sideways instead. This is because institutional investors typically start slowing their buying activity in the final months of the year.
This Wednesday, December 4, the U.S. Federal Reserve Chairman is scheduled to speak on economic trends, and on Friday, December 6, the Non-Farm Payroll (NFP) and US unemployment rate will be announced.
The market is closely watching these economic figures, which may influence the U.S. Federal Open Market Committee (FOMC) meeting on December 13, the last meeting of the year. There’s a possibility of a 0.25% interest rate cut, or the rate may remain unchanged.
Ethereum (ETH) has started to outperform Bitcoin, signaling a potential altcoin season. Factors supporting this include Bitcoin’s potential to remain flat for the rest of the year, while the Altcoin Index has reached levels indicative of an altcoin season. Keep an eye on Layer 1 blockchain coins, which could lead the market, as well as DeFi tokens that are beginning to see buying interest.
Investment strategy: Focus on Ethereum (ETH) and large-market-cap coins, while reducing exposure to meme coins due to shifting buying trends toward altcoins with strong fundamentals.
References
- https://cointelegraph.com/news/spot-ether-etfs-highest-daily-inflows-spot-btc-etf-flip
- https://cointelegraph.com/news/ethereum-l2s-record-51-b-tvl-205-yearly-growth
- https://cointelegraph.com/news/stablecoin-trading-volume-surges-1-8-t-november
- https://www.theblock.co/post/328682/standard-chartered-and-zodia-markets-forecast-stablecoin-usage-could-reach-10-of-u-s-m2-and-fx-transactions
- https://cointelegraph.com/news/defi-tokens-surge-november-tvl-hits-2021-highs
- https://cointelegraph.com/news/microstrategy-expands-bitcoin-holdings-5-4b-purchase
- https://www.theblock.co/post/328412/trump-team-looking-to-shift-crypto-regulation-to-cftc-dilute-secs-role-report
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.