Technical analysis of major crypto currencies December 5 – 11
Last week in the news
Some good news and some bad news related to macro fundamentals, impact the markets to trade in a mixed manner for the second week in a row. On the other side, the crypto market continues to be under pressure due to FTX contingencies. Bitcoin ended the second week above 16K, Ether is still holding above 1.2K.
The state of the US economy is still in the spotlight of the financial markets in the US. There had been a lot of news during the previous week related to the high potential of the FED to slow down its further rate increases aimed to halt inflation. Markets continue to price potential 50 bps increase in December. On the other hand, the latest posted job figures show that the US job market is not losing its strength, which might further impact the fight with inflation. Posted figures show that the US nonfarm payrolls increased for 263K in November, more than 200K expected by the market. Jobless rate remained at 3.7% level. At the same time, hourly earnings increased by 0.6% on a monthly basis, or 5.1% compared with the same period last year, which was also above expectations of 4.6%. Economists are expressing their doubts that a still strong labour market might impact FED`s efforts to fight inflation. On the other hand, there are those noting that it will take time until the increased interest rates reflect in the real economy and in the job market.
In a speech held during the previous week at the Brookings Institution, FED Chair Powell commented on the current state of the US economy. He noted the possibility for FED to ease further rate increases, but with the possibility that the rates might reach levels higher from previously expected, and stay at these high levels for a longer period.
Chicago Mercantile Exchange (CME) is continuing to expand its crypto related products, despite current market hesitancy due to crypto winter and collapse of FTX exchange. As it has been announced by the CME, it will team up with the cryptocurrency index provider CF Benchmarks, in order to introduce new real-time indices for AAVE, CRV and SNX. Indices will be published from 19th December, and will not be tradable for the moment.
Cryptocurrency financial services firm Galaxy Digital, managed to win an auction and acquire platform GK8 from a bankrupt lender Celsius Network. As noted from Galaxy Digital, the aim of this acquisition is to expand the company's brokerage offering.
Crypto market cap
Total crypto market capitalization modestly recovered during the previous week, adding 18B or 2% to its total cap. Within the crypto market this might be perceived as an incremental improvement, still, considering general circumstances, it is at least movement in a positive direction. The crypto market is still under influence of FTX collapse, and its potential consequences. This is also reflected in daily trading volumes, which continue to be at their lowest levels since year 2020. For a second week in a row, daily trading volumes were moving around 60B. The market is still on a hold, waiting for dust over FTX to settle. This situation might prolong for some time in the future, until the market confidence is restored. Total funds outflow from the beginning of this year remained flat at level of 1.372B, which is a decrease of 63% on a yearly basis.
Modest increase in total crypto market capitalization during the previous week was led by two major coins: BTC and ETH. Bitcoin gained almost 110B in its market cap during the week, which is an increase of 3%, compared to the week before. Ether also had a solid week, managing to increase its cap by additional 7.5B or 5%. It should be noted that DOGE had a nice performance with an increase in value by 12%, adding 1.5B to its market cap. Among altcoins, Zcash increased its market cap by 12%, and is followed by Uniswap, with a gain of 13% on a weekly basis. Other altcoins also had solid performance, with only few who finished the week in red. Previous week, Binance Coin was on a losing track. The coin lost 33B in market value, which is a decrease of 6.5%. However, it should be noted that two weeks ago, BNB was the absolute leader on the market, with a gain of 66B, so last week`s loss continues to be in the positive territory. As for coins in circulation, Filecoin continues with its strong increase of circulating coins, by adding 1.3% during the previous week.
Crypto futures market
During the previous week, crypto futures were traded on modestly higher grounds. Still, in line with the spot market, it could be perceived as an incremental change in futures spot prices. Short term BTC futures were traded more than 3% higher compared to the week before. Still, longer term futures were traded without significant changes on a weekly basis, with December 2023 ending the week less than 2% lower, at level of 16.73K.
ETH futures had higher increases from BTC futures. Short term ETH futures were traded up by 10% on average, while December 2023 was higher by 4% on a weekly basis, ending at level of 1.2K.
What is still highly evident in prices of both BTC and ETH futures is their price inversion. Namely, longer term futures were traded at lower prices from short term ones. This is an ongoing reflection of current market sentiment over the potential value of the coins within the course of the following year.
Some good news and some bad news related to macro fundamentals, impact the markets to trade in a mixed manner for the second week in a row. On the other side, the crypto market continues to be under pressure due to FTX contingencies. Bitcoin ended the second week above 16K, Ether is still holding above 1.2K.
The state of the US economy is still in the spotlight of the financial markets in the US. There had been a lot of news during the previous week related to the high potential of the FED to slow down its further rate increases aimed to halt inflation. Markets continue to price potential 50 bps increase in December. On the other hand, the latest posted job figures show that the US job market is not losing its strength, which might further impact the fight with inflation. Posted figures show that the US nonfarm payrolls increased for 263K in November, more than 200K expected by the market. Jobless rate remained at 3.7% level. At the same time, hourly earnings increased by 0.6% on a monthly basis, or 5.1% compared with the same period last year, which was also above expectations of 4.6%. Economists are expressing their doubts that a still strong labour market might impact FED`s efforts to fight inflation. On the other hand, there are those noting that it will take time until the increased interest rates reflect in the real economy and in the job market.
In a speech held during the previous week at the Brookings Institution, FED Chair Powell commented on the current state of the US economy. He noted the possibility for FED to ease further rate increases, but with the possibility that the rates might reach levels higher from previously expected, and stay at these high levels for a longer period.
Chicago Mercantile Exchange (CME) is continuing to expand its crypto related products, despite current market hesitancy due to crypto winter and collapse of FTX exchange. As it has been announced by the CME, it will team up with the cryptocurrency index provider CF Benchmarks, in order to introduce new real-time indices for AAVE, CRV and SNX. Indices will be published from 19th December, and will not be tradable for the moment.
Cryptocurrency financial services firm Galaxy Digital, managed to win an auction and acquire platform GK8 from a bankrupt lender Celsius Network. As noted from Galaxy Digital, the aim of this acquisition is to expand the company's brokerage offering.
Crypto market cap
Total crypto market capitalization modestly recovered during the previous week, adding 18B or 2% to its total cap. Within the crypto market this might be perceived as an incremental improvement, still, considering general circumstances, it is at least movement in a positive direction. The crypto market is still under influence of FTX collapse, and its potential consequences. This is also reflected in daily trading volumes, which continue to be at their lowest levels since year 2020. For a second week in a row, daily trading volumes were moving around 60B. The market is still on a hold, waiting for dust over FTX to settle. This situation might prolong for some time in the future, until the market confidence is restored. Total funds outflow from the beginning of this year remained flat at level of 1.372B, which is a decrease of 63% on a yearly basis.
Modest increase in total crypto market capitalization during the previous week was led by two major coins: BTC and ETH. Bitcoin gained almost 110B in its market cap during the week, which is an increase of 3%, compared to the week before. Ether also had a solid week, managing to increase its cap by additional 7.5B or 5%. It should be noted that DOGE had a nice performance with an increase in value by 12%, adding 1.5B to its market cap. Among altcoins, Zcash increased its market cap by 12%, and is followed by Uniswap, with a gain of 13% on a weekly basis. Other altcoins also had solid performance, with only few who finished the week in red. Previous week, Binance Coin was on a losing track. The coin lost 33B in market value, which is a decrease of 6.5%. However, it should be noted that two weeks ago, BNB was the absolute leader on the market, with a gain of 66B, so last week`s loss continues to be in the positive territory. As for coins in circulation, Filecoin continues with its strong increase of circulating coins, by adding 1.3% during the previous week.
Crypto futures market
During the previous week, crypto futures were traded on modestly higher grounds. Still, in line with the spot market, it could be perceived as an incremental change in futures spot prices. Short term BTC futures were traded more than 3% higher compared to the week before. Still, longer term futures were traded without significant changes on a weekly basis, with December 2023 ending the week less than 2% lower, at level of 16.73K.
ETH futures had higher increases from BTC futures. Short term ETH futures were traded up by 10% on average, while December 2023 was higher by 4% on a weekly basis, ending at level of 1.2K.
What is still highly evident in prices of both BTC and ETH futures is their price inversion. Namely, longer term futures were traded at lower prices from short term ones. This is an ongoing reflection of current market sentiment over the potential value of the coins within the course of the following year.
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