Current Market Overview
The crypto market is experiencing a notable upswing today, with a market capitalization rise of 1.6%, pushing it to an impressive $3.05 trillion. In a remarkable twist, 90 out of the top 100 cryptocurrencies have witnessed gains over the past 24 hours, contributing to a total trading volume of approximately $164 billion. This surge reflects a complex interplay of market forces and macroeconomic developments.
TLDR:
- Crypto market cap increases on Friday morning (UTC);
- 90 of the top 100 coins and all top 10 coins up today;
- BTC rises 1.4% to $87,906; ETH up 4.1% to $2,953;
- BTC remains in a broader downtrend;
- Uncertainty persists with sellers dominating the market;
- US consumer prices increase less than expected in November;
- Markets view CPI report as an anomaly rather than a trend;
- Outflows seen in both US BTC and ETH spot ETFs;
- BitMine makes a significant ETH purchase of over $229 million this week;
- Market sentiment dips into extreme fear.
Crypto Winners & Losers
As we delve deeper, a closer look at the top 10 coins shows that all have seen price increases within the past 24 hours. Bitcoin (BTC) has rallied by 1.4%, now sitting at $87,906. Meanwhile, Ethereum (ETH) leads with a notable 4.1% increase, currently trading at $2,953—the highest increase among the major coins.
Following closely is Dogecoin (DOGE), marking a gain of 2.4%, positioning itself at $0.128. On the lower end, Tron (TRX) experienced the slightest rise of 0.8%, now valued at $0.2794.
In the broader top 100 landscape, 90 coins have moved up, with only two reaching double-digit increases. Provenance Blockchain (HASH) leads the pack with a remarkable 10.1% increase to $0.03094, while Bitcoin Cash (BCH) follows closely with a 10% rise to $587. Conversely, MemeCore (M) posted a significant decline of 8.2%, now trading at $1.54, while Mantle (MNT) is down 3.7% to $1.17.
Market Influencers: US CPI Report & ETF Movements
A delayed report from the Bureau of Labor Statistics revealed that US consumer prices rose less than expected in November, fostering optimism among investors about easing inflationary pressures. This sentiment has had a ripple effect on the market, closely intertwined with movements in the stock arena, particularly following the S&P 500’s upward trajectory.
However, skepticism remains prevalent. Analysts claim that Bitcoin’s erratic price movements mirror underlying uncertainties within the macroeconomic landscape. Gabe Selby, Head of Research at Kraken’s CF Benchmark, insists that the CPI report should be viewed critically, as it was derived from atypical conditions, primarily impacted by Black Friday discounting, which distorted the data. Thus, he argues that markets are treating it more as an isolated incident rather than indicative of a sustained cooling trend in inflation.
Market Sentiment and Future Trajectories
As Bitcoin struggled to maintain momentum after an initial rally following the CPI release, traders swiftly reassessed their positions. This shift underlines the cautious sentiment permeating the market, characterized by a fear-oriented index now hovering at 21—indicating a near return to extreme fear territory.
Bitcoin’s current levels show it trading at $87,906 after an intraday high of $89,219, only to retrace back to $84,581 before stabilizing. Analysts highlight that it remains down 5% week-over-week and significantly below its previous all-time high of $126,080. Should the price breach the $90,000 threshold, optimism could build for a push towards $100,000; conversely, a dip may beckon a slide towards the $74,000 zone.
Ethereum’s price trajectory is similarly volatile, currently at $2,953 after a peak of $2,989 and a low of $2,781. The path forward appears fraught with challenges, with potential rebounds if it retakes the $3,000 mark, but risks pulling back to the $2,700 territory loom ominously if it falters.
ETF Dynamics and Outflows
This week has also seen concerning trends in exchange-traded funds (ETFs). Following a brief period of inflows, US-based BTC spot ETFs recorded a net outflow of about $161.32 million, with BlackRock’s funds exhibiting some resilience with $32.76 million in inflows. Conversely, Fidelity led the negative outflows with a staggering $170.28 million.
Ethereum ETFs have mirrored this pattern, marking a sixth consecutive day of outflows, totaling $96.62 million. This trend raises eyebrows among market participants as they gauge the upcoming developments in ETF investments against the backdrop of an uncertain crypto landscape.
Quick FAQ
- Why did crypto move with stocks today?
- Is this rally sustainable?
The correlation stems from an uptick in the US stock market, notably after the release of the CPI data, which was perceived as less alarming than anticipated. This alignment often leads to speculative behavior across risk assets, including cryptocurrencies.
While a short-term rally seems plausible, many analysts remain wary of immediate downturns, calling for a broader rally to materialize potentially in early Q1 of next year.
