In the crypto market report covering the week of December 30 – January 6 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 30, 2024.
December 30 Weekly Crypto Market Report Overview
There were notable developments in economic and crypto markets last week. Economic data in the US presented a mixed picture. Chicago PMI fell well below expectations, indicating weakness in economic activity, but Pending Home Sales and ISM Manufacturing PMI data exceeded expectations, indicating positive momentum in some areas of the economy. The S&P/CS Home Price Index showed a slow increase on an annual basis, while the Atlanta Fed’s GDPNow growth forecast was lowered, indicating that the pace of economic growth is slowing. Low unemployment claims indicate that the US labor market remains strong, while steady construction spending confirmed the slowdown in the sector.
In Europe, signs of economic stagnation continued; Manufacturing PMI data from Germany and France remained in contraction territory, while Germany’s unemployment rate showed no change. However, there was no improvement in the labor market either. On the energy front, the American Petroleum Institute’s oil inventories fell short of expectations, raising the possibility of a weakening demand.
This week’s economic calendar includes important data that will set the direction for markets. Germany’s monthly and annual CPI data will be critical to understanding the inflation outlook in the Eurozone. While the US services sector PMI data is expected to continue its strong expansion, the November JOLTS jobs data will be important for assessing the dynamism in the labor market. The ADP Nonfarm Payrolls report to be released on Wednesday will provide insight into the health of the US labor market. The FOMC meeting minutes to be released on the same day may also provide clues about the Fed’s future monetary policy and interest rate hike expectations. Nonfarm Payrolls, Average Hourly Earnings, and Unemployment Rate data to be released later in the week will be monitored to assess both the strength of the labor market and the potential impact on the Fed’s interest rate policy.
There were also important developments in the crypto markets last week. Volatility Shares applied for leveraged ETFs for Solana futures, and these applications raised the possibility of Solana futures being launched and spot ETF approval. The growth of real-world assets in the tokenization sector has been remarkable. It has increased 58-fold in the last three years, reaching $8.2 billion in TVL. Ethereum has surpassed Bitcoin in long-term investor confidence, achieving 75.06% investor retention. While trading volume broke records on decentralized exchanges (DEX) in December, Solana maintained its leadership with $112 billion in spot trading volume. Celsius aimed to recover its losses in the bankruptcy process by appealing the denial of its $444 million claim against FTX. Ethereum founder Vitalik Buterin donated 50 ETH to the Tornado Cash developers’ legal defense fund and continued community support. On the other hand, Morgan Stanley’s E-Trade unit is preparing to become a major player in the sector by starting crypto trading if it receives regulatory approval. The 78% probability estimates for SEC approval for Solana ETFs are drawing interest in the markets.
Those who want to get more comprehensive information about the week covering December 30 – January 6 can review Weekly Crypto Market Reports: December 30, 2024.
