Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Curve DAO, rising 144.31%.
- Crypto trading volume climbed to an all-time high in November, with more than $10 trillion of digital assets changing hands for the first time on centralized spot and derivatives exchanges. Crypto markets have surged amid optimism for a friendlier regulatory environment for the industry under the newly elected Trump administration, according to Bloomberg.
- Cryptocurrency speculators kept Bitcoin in sight of the landmark $100,000 after digital-asset proponent Paul Atkins was selected by U.S. President-elect Donald Trump to lead the SEC, writes Bloomberg. The original digital asset erased earlier losses to trade about 1% higher at around $97,300 on Wednesday following a more than 40% advance since Trumps decisive election victory.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was RAY, down 15.03%.
- Options suggest that some traders may have already started to hedge against a potential pullback in Bitcoin after the original cryptocurrency surged to more than $100,000 for the first time. There has been an uptick in demand for puts with strike prices of $95,000, and $100,000 have seen the largest open interest position over the last 24 hours.
- Crypto traders have triggered vertiginous jumps in digital assets beyond Bitcoin, stirring up memories of a buying frenzy that swept the market during the pandemic before giving way to an epic bust. Unsung tokens such as CRV, TRX and IOTA from the digital ledger of the same name have jumped over 40% in the past five days, according to Bloomberg.
Opportunities
- President-elect Donald Trump’s pick of a crypto proponent to be the next head of the U.S. securities regulator lifted Bitcoin to $100,000 for the first time, reports Bloomberg, as traders warmed to the prospect of relaxed regulations. Bitcoin rose as much as 6.1% to $103,801 on Thursday.
- Etoro is working with Goldman Sachs group on a potential initial public offering in the U.S. The trading and investment platform is considering going public as soon as the second quarter though that timeline is subject to change. The company is seeking a valuation above the $3.5 billion figure, writes Bloomberg.
- Donald Trump says he is selecting venture capitalist David Sacks of Craft ventures LLC to serve as his artificial intelligence and crypto czar, a newly created position that underscores the president-elect’s intent to boost two rapidly developing industries, Bloomberg reports.
Threats
- The UK police said they have shut down Russian networks that were moving billions of dollars for oligarchs, street gangs and spies by swapping cash for cryptocurrency across Europe, the Middle East and South America, Bloomberg writes. Officers at the National Crime Agency unveiled a complex laundromat that they said could support almost any crime, the article continues.
- Bitcoin and the broader crypto market are witnessing strong demand for bullish leveraged plays, a sign the market is overheated. While market makers hedging is likely to keep BTC supported at around $100,000, the heightened activity raises the risk of pullbacks for other cryptocurrencies.
- Despite online backlash, Solana memecoin Hawk has dropped over 90% in market cap. The token was launched by Hailey Welch who went viral earlier this year for her quote “Hawk Tuah” in a street interview video posted on YouTube, according to Bloomberg.
