This week, Bit (BTC) and Ethereum (ETH) continued their strong momentum driven by favorable macroeconomic policies. The market saw a slight correction on Monday and Tuesday, but after the adjustment, Bit (BTC) successfully returned to the $100,000 level on Thursday. Here are the key market dynamics and BitFi analyst interpretations for the week:
Favorable Macroeconomic Policies
David Sacks, the newly nominated crypto affairs supervisor for the Trump administration, is seen as an important barometer for the future policy direction of the crypto industry. As a staunch supporter of Solana and an investor in the crypto investment firm Multicoin Capital, the market generally believes that the Trump administration may bring more friendly policies towards virtual assets, which is reflected in the upward trend of Bit (BTC) prices.
At the same time, the expectation of a Fed rate cut in December has increased significantly, and the employment data showed that non-farm payrolls increased by 227,000 in November, but the unemployment rate rose to 4.2%. This macroeconomic environment provides more upside space for crypto assets, but the mixed signals in the labor market also increase volatility risks.
Market Dynamics
Bit (BTC):
· The weekly gain reached 2.84%, and the monthly gain reached 30.63%.
· Institutional capital continues to flow in, and the performance of ETFs is noteworthy. According to statistics, the total assets of spot Bit (BTC) ETFs have reached $59.6 billion, indicating that institutional investors' confidence in digital assets is steadily improving. This trend reflects the market's recognition of Bit (BTC) as a long-term value storage tool.
·BitFi analysts pointed out that Bit (BTC) has been on a meteoric rise since October, with a trajectory similar to 2023: starting to rise in October, entering a strong consolidation phase in November and December, with sufficient buying demand and prices difficult to fall back. It is expected that Bit (BTC) may surge to a new high again in January 2025, coinciding with the inauguration of Trump and Musk.
Ethereum (ETH):
· Since November 21, Ethereum has been in an upward channel, with a strong upward trend, outperforming Bit (BTC).
· On the evening of December 7, it reached a high of $4,087, the highest level since March of this year, but failed to break through this key resistance level. In the short term, the upward channel trend may be broken, and it may enter a sideways consolidation phase. Within the next two weeks, if it breaks through $4,087, ETH is expected to challenge the previous bull market high of $4,951.
BitFi analysts pointed out that ETH is in a clear upward momentum. With the inflow of capital into spot Ethereum ETFs, the market has shown strong demand for ETH, and the attractiveness of staking rewards is also increasing. The period of poor performance for Ethereum may be over, and it may see greater appreciation space in the future with the expansion of the DeFi ecosystem.
Although the long-term trends of Bit (BTC) and ETH remain optimistic, potential risks need to be watched out for in the short term after the good news is exhausted. BitFi analysts advise clients to remain cautious and use the current market discounts for long-term positioning.
Disclaimer
The above content is only for market analysis and opinions, and does not constitute any investment advice. Investing in digital assets carries high risks, please fully evaluate your risk tolerance before making any investment decisions, and consult with professional financial advisors.
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