Flipster Crypto Weekly (December 20)
December 20, 2024
The markets reacted sharply to the hawkish stance of the Federal Open Market Committee (FOMC) on Wednesday, with Bitcoin falling below $100,000 and significant losses observed across asset classes. The total crypto market capitalization dropped by more than 6%, with altcoins bearing the brunt of the decline, many experiencing losses exceeding 10% in a single trading session.
The Federal Reserve (Fed) announced the continuation of its 25 basis points (bps) rate cut, but the updated projections for 2025 indicated fewer cuts than previously anticipated. Additionally, policymakers revised their inflation estimates for the coming year upward, reinforcing the Fed's cautious stance. These developments underscored a challenging outlook for risk assets, including crypto markets, contributing to heightened market volatility.
Bitcoin (BTC)
Weekly performance: -2.43%
Year-to-date (YTD) performance: +130.89%
Bitcoin (BTC) fell from its all-time high of $108,000 to below $96,000 at one point following the Federal Reserve’s hawkish stance, reinforced by statements from Fed Chair Jerome Powell. Powell commented that the U.S. central bank has no plans to adopt a Bitcoin strategic reserve, a position that contrasts with the broader stance of the U.S. government. The news led BTC to drop below its 21-day moving average (MA) for the first time since early October.
Ethereum (ETH)
Weekly performance: -11.9%
Year-to-date (YTD) performance: +49.89%
Ethereum (ETH) briefly surpassed the $4,000 mark earlier this week, breaking through the psychological resistance level. However, selling pressure came in, pushing prices back below $4,000 and beneath the 10-day and 21-day short-term MAs. Currently, ETH is finding support at a prior resistance level, which coincides with the 50-day moving average around the $3,400 price level.
Solana (SOL)
Weekly performance: -13.43%
Year-to-date (YTD) performance: +93.16%
Solana (SOL) has retraced below its previous breakout level, erasing the gains achieved since early November. With prices forming lower highs and lower lows while slipping below the 50-day moving average, SOL is firmly in an intermediate downtrend. If this trend persists, the next significant support level is expected around $183.
Pudgy Penguin (PENGU)
The much-anticipated airdrop from the NFT project Pudgy Penguins launched on Tuesday, generating significant market activity. With the floor price of Pudgy Penguins NFTs exceeding 36 ETH—valued at over 100,000 USDT as of December 17—traders who were not eligible for the airdrop rushed to purchase PENGU tokens amid the frenzy for anything Pudgy-related. This surge in demand propelled the token's price from $0.00333 to over $0.07, reflecting an intraday increase of more than 1,900%.
$PENGU rose more than 1,900% during Tuesday’s intraday session. Source: TradingView.
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.