To say the last seven days were exciting would be an understatement. According to CoinGecko, the total cryptocurrency market capitalization increased by almost $300 billion and peaked at around $3.8 trillion. This is due to a historic milestone for Bitcoin and the strong performance of many altcoins, so let’s dive into the price action.
All eyes were on Bitcoin this week. To be completely honest, the price action was relatively dull and quite depressing during the first part of the week. BTC was fluctuating between $98,000 and $96,000, even falling to a low below $94,000 at one point. The bulls were not active. This all changed on Wednesday when the price shot up towards $99,000.
Most of the community was convinced that the price would stop there again, but buyers had something else in mind. On Thursday morning (Central European Time), the price soared above $100,000 for the first time in history, completing one of the most iconic milestones in Bitcoin history. And the thing didn’t stop there either. It charted a new all-time high at around $104,000, but that’s where the sellers stepped in, scooping up a large number of overleveraged long positions and causing an extended drawdown to $92,000 (on Bitstamp).
Yes, that’s how much hundreds of millions of overleveraged long positions can affect the price when there is significant selling pressure. Fortunately, Bitcoin recovered and currently sits at around $98,000.
However, as we mentioned, it wasn’t just BTC that skyrocketed. The best performer of the top 10 is undoubtedly Ripple’s XRP. The cryptocurrency spiked as much as 60% at one point, but has since pulled back a bit and is currently trading at $2.30. Ethereum is also up about 7.6%, Binance Coin (BNB) is up 8.5%, ADA is up 8%, and so on.
Bitcoin’s rally above $100,000 came following a major announcement from President-elect Donald Trump. He has chosen the new chairman of the United States Securities and Exchange Commission and its former commissioner Paul Atkins. In Trump’s own words, Atkins is known for his balanced and understanding approach towards innovations and digital assets.
That being said, it is very interesting to monitor the cryptocurrency markets in the coming weeks. Will Bitcoin reclaim its high of $104,000 or is a deeper correction brewing? We’ll have to wait and see.
Market data
Market capitalization: $3.73 trillion | Vol. 24H: 406 billion dollars | BTC dominance: 51.9%
BTC: $98,939 (+1%) | ETH: $3,895 (+7.6%) | XRP: $2.30 (+37.9%)
This Week’s Crypto Headlines You Can’t Miss
Another Monday, another purchase: MicroStrategy adds 15,400 BTC for $1.5 billion. This Monday, MicroStrategy bought another 15,400 BTC for around $1.5 billion at an average price of $95,976 per coin. This brings your total Bitcoin stack to 402,100 or about 1.9% of the total supply.
MARA closes $850 million convertible note offering to boost Bitcoin holdings. MARA Holdings, the largest Bitcoin miner that is also publicly traded on Wall Street, has successfully closed a second offering of $850 million in convertible senior notes. The goal of this increase is to increase the company’s Bitcoin holdings.
The chairman of the Federal Reserve compares Bitcoin to gold and says it is not a rival to the dollar. US Federal Reserve Chairman Jerome Powell dismissed concerns about faith in the US dollar. He compared Bitcoin to other speculative assets like gold and said its volatility keeps it away from mainstream adoption.
BlackRock’s IBIT becomes the fastest ETF in history to reach $50 billion in assets under management. BlackRock’s Bitcoin spot ETF, IBIT, has made history. It became the fastest ETF in history to reach $50 billion in total assets under management.
Mt. Gox Wallet moves 27,871 BTC as Bitcoin reaches $100,000 milestone. Mt. Gox moved around $3 billion in BTC to an unidentified address on December 4. The trustee is probably preparing for the next round of distributions to its creditors.
Solana whales begin a wave of accumulation amid SOL predictions at $600. There are some wild predictions about the price of SOL, expecting it to reach a whopping $600 in the near future. In the midst of all this, the Solana whales have begun to accumulate considerably.
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Cryptocurrency charts by TradingView.
