The pre-Christmas period is often used for smaller upswings. December is often a positive month for the financial markets, which means that current price levels are likely to be maintained. The temporary ‘relaxation’ in the market due to consolidations could lead to the establishment of strong support zones and thus support further upswings.
Thought of the week
Digital Asset News
Ethereum (ETH) rises above the psychological price mark of USD 4,000 for the first time since spring 2024. Meanwhile, on-chain data shows a significant increase in transactions, while Ethereum ETFs are also attracting more capital than ever. The world’s second most valuable cryptocurrency has thus risen again to a valuation of USD 475 billion. According to Ali Martinez, the weekly transaction volume of large Ethereum transactions has increased by over 300%, indicating a strong increase in activity growth. It currently stands at 17.15 billion US dollars. This development could indicate increased institutional participation and shows the growing interest in Ethereum as a strategic investment instrument. Demand for Ethereum ETFs has risen sharply, with cumulative inflows reaching over USD 1 billion since 12 November 2024. Last week in particular saw record purchases. This development shows that despite sceptical forecasts, Ethereum continues to enjoy great interest from investors.
Ethereum has outperformed Bitcoin since the US presidential election on 5 November and continues to gain momentum, according to a report by crypto exchange Bybit. In November, Ethereum gained significant traction against BTC accordingly, which is reflected in a sharp decline in the ratio between the prices of the two cryptocurrencies,’ Bybit said in its November 2024 volatility report, co-authored by analyst Block Scholes. The rising demand for ETH options also suggests that ‘investors are increasingly favouring ETH,’ Bybit said in the statement. Ethereum’s outperformance accelerated after US Securities and Exchange Commission (SEC) Chairman Gary Gensler announced his resignation on 21 November, bringing ‘additional momentum and attention’ to the asset, the report said. Bybit highlighted that ETH’s increasing dominance is ‘most evident in the spot market’, where the ratio of ETH to BTC has risen from around 0.0325 on 21 November to over 0.04 on 6 December, according to TradingView.
The founder of Hartmann Capital, Felix Hartmann, believes that the shift from BTC to ETH is a signal that Wall Street is now ‘officially on board’ with the ‘alt-rotation’.
In an interview with Anthony Pompliano, the former Chief Operating Officer (COO) of PayPal emphasised that Bitcoin is not only a good hedge against inflation, but also protects against censorship and state encroachment. ‘Church and state were also closely linked for a long time. You couldn’t think of one without the other,’ as Sacks explains. He adds:
‘And today it’s quite normal for us that the two are separate. I think it’s similar with the state and money. We can’t even imagine money without the state today, but Bitcoin offers us a kind of sci-fi future in which these things can perhaps be separated.’
The appointment of Sacks was preceded by the nomination of hedge fund manager Scott Bessent as the new Secretary of the Treasury. Bessent also praises crypto and is convinced that Bitcoin & Co. are ‘here to stay’.
Digital Asset Market:
Market report including trading idea
The majority of digital assets experienced a slight upswing last week, with Bitcoin rising above the $100,000 mark for the first time in history. Bitcoin is thus consolidating the global increase in acceptance and emphasising that digital assets can currently be a very attractive investment. Altcoins were able to maintain the positive trend and also saw positive price changes, which led to Ethereum climbing back above the $4,000 mark. It is now a matter of establishing higher support zones to avoid the risk of rapid overheating. If the volume declines slightly and consolidation sets in, the price levels should have a positive impact on the market until the end of the year. Larger profit-taking could lead to volatile setbacks at any time.
Chart technology
From a chart perspective, Bitcoin is hovering around the psychologically important $100,000 mark, in line with our analyses of recent weeks. Consolidation around an all-time high is relatively rare for digital assets. This is a positive aspect that suggests that there is currently no significant profit-taking. With further positive volumes, this could ensure that further upswings follow, turning the $100,000 mark from a resistance to a support zone. However, more precise predictions are difficult in the current phase and daily events should be kept in mind and optimised actions should be taken based on them.
The next price targets in the event of a positive development: ~$102,000, ~$105,500 ~$110,000
The next price targets in the event of a negative development: ~$96,000, ~$93,500 ~$90,000
Trading idea
New positions are not particularly lucrative in the risk/reward matrix as long as there are no new volatile trend reversals. Should these occur, many altcoins offer entry points, otherwise temporary setbacks are good opportunities to further diversify the portfolio.
