Price Action:
*BTC dropped nearly 12.5% in the past hours, sliding from around $103,410 to $90,587. Selling pressure pushed the price before recovering above key support levels and the 30-day VWAP. While the broader trend remains intact, short-term indicators point to potential further downside, urging caution.
*ETH declined about 2% over the same period, falling from $3,920 to $3,844 after reaching a high of $3,956 and a low of $3,724. Despite the pullback, the trend remains bullish, supported by key moving averages and strong accumulation. However, overbought conditions suggest the need for a cautious outlook.
Friday
*Markets adopted a cautious stance ahead of a key US jobs report that could shed light on the Federal Reserve’s policy direction. US equity futures showed minimal movement, while the dollar inched higher, putting it on track for its ninth weekly gain in the past 10. Treasury yields edged upward, oil extended its decline for a third consecutive day, and Bitcoin retreated from its record highs.
*Economists predict that US non-farm payrolls increased by 220,000 in November, recovering from disruptions caused by weather and strikes. This report, the last before the Fed’s upcoming interest-rate decision, carries significant weight, with swaps markets pricing a 65% chance of a quarter-point rate cut this month.
*Friday’s labor market data will play a crucial role in determining whether the S&P 500 can sustain its impressive 27% rally this year. The surge has been fueled by enthusiasm for artificial intelligence and expectations that President-elect Donald Trump’s policies will bolster US markets, potentially setting the benchmark up for its strongest performance since 2019.
*In the crypto space, Bitcoin experienced a sharp drop from the $99,000 level to as low as $90,500, triggering a massive leverage flush. Over $1 billion in long positions were liquidated, marking the largest such event in three years.
Thursday
*On Wednesday night in New York, Bitcoin surged past the $100,000 mark, fulfilling the long-held hopes of crypto enthusiasts. Driving the rally was the widespread belief within the digital asset community that incoming US President Donald Trump would reverse the stringent regulatory stance of the previous administration, instead adopting crypto-friendly policies and appointing supportive regulators. This optimism was bolstered by Wednesday’s events, particularly Trump’s decision to nominate Paul Atkins, a pro-crypto advocate, to succeed Gary Gensler as the head of the US Securities and Exchange Commission (SEC).
*Levered Stock-Crypto ETF Gambit Lands in Wall Street’s Go-Go Era. Florida-based Volatility Shares recently submitted a filing to introduce a series of exchange-traded funds (ETFs) designed to combine equity investments with digital assets. The unique proposition is that by leveraging derivatives, investors can gain exposure to both $100 in U.S. equities and $100 in cryptocurrency, all with a single $100 investment.
Wednesday
🚀 BTC prints new ATH, reaches past the $100,000 mark, and traded above $103,000
*Tech stocks drove a rise in US equity futures as traders awaited comments from Federal Reserve Chair Jerome Powell for insights into the future path of interest rates.
*Nasdaq 100 futures rose 0.6%, fueled by strong earnings in the tech sector. S&P 500 futures also edged up after the index marked its 55th record high of the year on Tuesday. The dollar gained strength, and 10-year Treasury yields increased.
*French markets held steady ahead of Wednesday’s no-confidence vote, which could potentially lead to the collapse of the government. Meanwhile, South Korea’s won recovered after President Yoon Suk Yeol reversed his unexpected martial law announcement.
*Powell’s speech, along with upcoming US data on services and manufacturing, will be closely watched as investors prepare for Friday’s key labor market report.
*U.S. Federal Reserve Chair Jerome Powell says BTC is “just like gold only it’s virtual, it’s digital… it’s really a competitor for gold”
Tuesday
*US equity futures signaled a muted open on Wall Street as traders looked ahead to a busy week of Federal Reserve speeches and data releases for clues on interest rate direction.
*S&P 500 futures were flat after the index notched its 54th record close of the year on Monday. Treasury yields and the dollar dipped slightly, while the euro recovered some losses from the previous day, partly due to uncertainty over France’s budget.
*Key events this week include Friday’s payrolls report, expected to show a rebound in November hiring, and Fed Chair Jerome Powell’s discussion on Wednesday. Market swaps are pricing in a more than 70% chance of a 0.25% rate cut at the Fed’s December meeting.
*Meanwhile, Citigroup strategists noted that short sellers are capitulating as the S&P 500 continues to set record highs, while bearish sentiment persists on European stocks, widening the gap between the two markets.
Monday
*The Bloomberg Dollar Index rose by 0.4%, while the euro weakened after France’s far-right party threatened to destabilize the government amid a standoff over the country’s budget. French bonds lost value, and the yield spread between French and German bonds widened to 87 basis points, up from around 80 on Friday.
*At the same time, US Treasuries declined as investors focused on upcoming US data that could influence Federal Reserve policy, while also evaluating hawkish remarks from the Bank of Japan. The dollar received additional support from comments by Donald Trump, who suggested that BRICS nations should not create a currency to challenge the US dollar, reinforcing his America-first stance.
*This week, attention is on several key global events, including a discussion with Fed Chair Jerome Powell on Wednesday. On Friday, important data will be released on the US jobs market.
*In the cryptocurrency sector, XRP briefly surpassed a $130 billion market capitalization, overtaking USDT as the 3rd largest coin by market cap, following reports that Ripple’s RLUSD stablecoin is nearing approval.
