In the crypto market report covering the week of December 16-23 prepared by the ICRYPEX Research team, we have compiled current developments regarding crypto assets, price movements of crypto assets and macroeconomics.
You can take a look at the general flow of this report immediately below and reach all the developments that took place in the 7-day period from Weekly Crypto Market Reports: December 16, 2024.
December 16 Weekly Crypto Market Report Overview
Last week, when all markets ended with declines, the announced data and central bank meetings played an important role in determining the direction of the markets. While very important data was announced from all regions due to the fact that next week is Christmas and the last week of the year, especially the FED meeting and Powell’s speech deeply affected all markets and especially crypto assets. At the same time, investors who did not want to stay in position before Christmas abandoned their positions and especially investors who were mostly in profit in Bitcoin and Ethereum sold, causing the price to reach bottom in a 2-day period.
When we look at economic data, the FED meeting, BoE and BoJ meetings appear to be the 3 most important topics, while the US Federal Reserve closed the year with a 25 basis point cut in the week when the Banks of England and Japan left interest rates unchanged. The year ended with a total of 100 basis point cuts. When we look at Powell’s speech and projections; While it is seen that 2025 does not give very good signals in terms of macroeconomic activities, FED members reduced the expectation of 3 interest rate cuts to 2 interest rate cuts in their projections, while also revising inflation and growth expectations upwards. The PCE data from the US on Friday was the last important data of the year, and although the data increased compared to the previous month, its announcement below expectations helped to calm the selling pressure and start a short-term increase.
The crypto asset spent the week declining to $3.2 trillion in total with an 11% loss of value, while Bitcoin opened the week at $104,400 and closed the week at $95,000, falling by 8.8%. Ethereum, which tested above the $4000 level and started at $3960, closed the week at $3280, while the bottom level it saw on Friday, $3080, was the lowest level in the last 5 weeks. Bitcoin dominance rose to 60% levels during this process, and started Monday slightly below 59%. The dominance’s reaction from 60% may increase positive expectations for the alts.
When we turn to ETFs, Bitcoin and Ethereum ETFs began to see outflows for the first time since December 26 and 22. While a total of $ 135 million outflow occurred in Ethereum ETFs on Thursday and Friday, $ 956 million outflow occurred in BTC ETFs on the same days. While the total size of Bitcoin ETFs decreased to $ 110 billion, Ethereum ETFs decreased to $ 12.15 billion.
Those who want to get more comprehensive information about the week covering December 16 – 23 can review Weekly Crypto Market Reports: December 16, 2024.
