Flipster Crypto Weekly (13 December)

13 December 2024

This week saw over $1.5 billion in liquidations, marking the largest event of its kind since December 2021. The sell-off followed a significant buildup of leverage in the crypto markets, particularly in altcoins, where open interest relative to total altcoin market capitalization climbed to 4.42%, driving funding rates higher. Monday’s market decline helped ease the excessive open interest levels, helping to restore a measure of balance to the markets.

Altcoin open interest. Source: K33 Research

The decline seemed to have little impact on investor appetite, as crypto investment products saw a record $3.85 billion in weekly inflows last week, while spot Bitcoin exchange-traded funds (ETFs) in the United States marked their tenth consecutive day on inflows on Wednesday.

Bitcoin (BTC)

Weekly performance: +2.37%

Year-to-date (YTD) performance: +134.91%

This week, Bitcoin (BTC) made headlines as Microsoft shareholders rejected the board's proposal to add Bitcoin to the company’s balance sheet. During this period, BTC traded within a range of $94,000 to $102,000, showing little directional momentum. Despite the lack of strong movement, the cryptocurrency has been forming higher lows since early October, signaling that it remains in an overall uptrend.

Ethereum (ETH)

Weekly performance: +2.81%

Year-to-date (YTD) performance: +70.55%

After briefly surpassing $4,000 last week, Ethereum (ETH) pulled back alongside the broader crypto market at the start of the week. The decline found support at the 21-day moving average, with multiple long lower wicks suggesting this level could serve as a key indicator to watch in the coming days.

Solana (SOL)

Weekly performance: -3.98%

Year-to-date (YTD) performance: +122.62%

Solana (SOL) has retraced to the 50-day moving average for the first time since early November. Traders have consistently shown interest in buying SOL at this level since its upward movement began in October, suggesting that the 50-day moving average could act as a crucial support level moving forward.

CoW Protocol (COW)

COW staged an impressive breakout during Thursday’s session, closing with a 28% gain despite broader selling pressure across the crypto market. This performance made it one of the top movers on Flipster. The breakout was backed by strong trading volume, signaling the potential for further momentum in the rally.

COW made it to Flipster’s Top Movers list on Friday. Source: Flipster.

Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.