GM!
Here’s what’s trending today:
- Major cryptocurrencies dropped recently, but they’ve reversed course this week. Bitcoin is now at $85,700.
- Tether’s founder, Paolo, is again addressing bankruptcy fears.
- China’s central bank has officially labeled virtual currency as illegal and hinted at potential crackdowns.
- Saylor has hinted at a “green dot,” causing murmurs about a potential Bitcoin sale.
- Hyperliquid tokens are starting to unlock, with 1.75 million distributed to the team.
📈 📉 Cryptocurrency recovers, then reverses
Bitcoin’s decline has temporarily paused due to whale purchases and ETF inflows. But, the drop on Sunday night reignited worries about market stability.
📌 What happened
After weeks of heavy selling, Bitcoin surprised many by recovering during the latter part of the holiday week. This shift is largely due to large holders switching from selling to accumulating.
Data shows a group of major holders with over 10,000 BTC has begun accumulating again for the first time since August. Their buying behavior indicates they are adding to their holdings rather than reducing them.
Additionally, a cohort holding between 1,000 and 10,000 BTC has also shifted to net buying, and retail holders with less than 1 BTC are accumulating at the highest rate since July.
ETF outflows have notably slowed and even reversed, with a reported $70 million inflow into Bitcoin ETFs this week—the first positive inflow since late October. Remarkably, Ethereum ETF inflows were even higher, reaching $312 million.
All this contributed to a 10% week-long gain among major cryptocurrencies—at least until Sunday night.
Bitcoin fell from nearly $92,000 to about $86,000 amid a significant sell-off, leading to over $650 million in liquidations. The morning after, Bitcoin is at $85,700, while most major cryptocurrencies are down 6-8%.
This isn’t exactly the start to December that many were hoping for, and even Saylor is contemplating a sale.
🧠 Why is it important?
These are critical times for Bitcoin and cryptocurrencies in general. Skeptics and bears foresee a repeat of past cycles, looking for Bitcoin to drop below $70,000.
Yet, the previous week brought a hint of hope for the bulls. Prices had stabilized and started to rise again, driven by whale purchases and positive ETF trends.
However, all that progress faded quickly last night. This week could be telling for crypto prices moving forward.
If whales keep buying, we might see Bitcoin stabilize or even rise, which could encourage ETFs to follow suit. If not, we could see it revisit lows around $80,000 or lower.
The coming days will be revealing.
🌎 Macro Codes and Memes
Here are some notable headlines in crypto and Web3:
- Major cryptos are seeing red, reversing last week’s gains: BTC is down 6% at $85,800, ETH is down 6% at $2,820.
- MYX saw a rise of 15%, while JST increased by 4%.
- More than $650 million in liquidations occurred, with $580 million of long positions disappearing as BTC dropped below $86,000.
- ZEC was hit hardest, dropping 20% to $355 and down 35% this week.
- Tether’s Paolo Ardoino continues to combat bankruptcy rumors, asserting that Tether is safe.
- The Central Bank of China has confirmed the illegality of cryptocurrencies, indicating a potential crackdown.
- Robinhood has launched a new CFTC-approved exchange aimed at prediction markets.
- Pavel Durov announced a decentralized computing network called “Cocoon,” enabling GPU owners to earn rewards.
- JP Morgan has introduced BTC bonds, offering investors significant upside potential and downside protection.
- Plans for a USD-pegged stablecoin from Sony Bank could emerge as early as 2026.
💰 Tokens, Airdrops and Protocol Trackers
The day’s key news on tokens, protocols, and airdrops:
🚚 What’s happening with NFTs?
Here are highlights regarding NFTs:
- The NFT market is showing some decreases: Most collections are down by 2-7%, with notable ones like Punks slightly up by 1% at 30.9 ETH.
- Crypto Dick Butts saw an impressive rise of 11%.
