Market Analysis

As the broader cryptocurrency market experiences sharp declines, large investors are aggressively buying unexpected tokens like Pippin and Fartcoin, while accumulating Uniswap despite its price drop.

This year’s anticipated Santa Rally is absent as XRP and Bitcoin test critical support levels, and the Nasdaq shows potential bearish reversal patterns, casting a nervous shadow over December markets.

Arthur Hayes, BitMEX founder, predicts that most Layer-1 blockchains will fail, leaving only Ethereum and Solana as viable networks. He also forecasts the continuation of the bull market, driven by U.S. political factors, and a new trend towards privacy-focused cryptocurrencies in the coming year.

After a sharp correction, the crypto market rebounds with bitcoin leading the recovery. Analysts remain optimistic, with some predicting new all-time highs by January.

Bitcoin’s price plummeted from $90,000 to $85,000, liquidating $900 million in long positions, following renewed warnings from China about stablecoins and broader market uncertainty.

The crypto market started December with heavy losses, with Bitcoin dropping over 7%. The downturn is largely attributed to rising interest rates in Japan, which is prompting the unwinding of the yen carry trade, leading to widespread sell-offs in risk assets.

This week’s most-read articles on our platform focused on in-depth analysis rather than hype, covering the impact of U.S. bond yields on Bitcoin, the surge in XRP and DOGE ahead of new ETF launches, and record inflows into crypto exchanges.

Following a significant market crash, analysts suggest Bitcoin’s market structure is improving. Mid-sized investors are accumulating BTC while risky leverage positions are being flushed out, potentially setting the stage for a healthier market.

Arthur Hayes, BitMEX co-founder, warns that the newly launched Monad token could see a 99% price drop due to its ‘VC coin’ structure, despite its initial surge.

Bitcoin and the broader crypto market are down today, but investors remain hopeful for a year-end rally. The Fear & Greed Index shows fear, but sentiment has improved.