This is a very short and simple update on what we have witnessed this week in the cryptocurrency market. Staying up-to-date with the latest developments in the market is essential for making better decisions. Let’s analyze the market. Ready? Dive in!
US Market Weekly Update
The US market has witnessed a serious fall of 1.32% in the last seven days. Except for Europe and Australia, almost all major markets, including China, Japan, India, and South Africa, have reflected the bearish trend. Specifically, China has declined by 1.05%, Japan by 1.79%, India by 2.51%, and South Africa by 1.34%. In contrast, Europe has surged by 1.49%, and Australia managed a modest rise of 0.40%.
This week, the US market saw the release of several prominent indexes, most notably the US S&P Global Composite PMI Final and the US Unemployment Rate. Remarkably, the S&P Global Composite PMI Final grew from 54.9 to 55.4 in December, marking the swiftest rise since April 2022. Similarly, the S&P Global Services PMI final increased from 56.1 to 56.8, reflecting the highest gain since March 2022.
However, not all data was positive. The US Factory Orders MoM in November fell to -0.4% from 0.5%, defying the expectation of a modest decline to 0.3%. On a brighter note, US Exports grew from $266.309 billion to $273.4 billion, while Imports increased from $339.923 billion to $351.6 billion. The US Initial Jobless Claims declined from 211K to 201K on January 4, 2025. Notably, the US Non-Farm Payrolls saw the numbers climb from 212K to 256K—significantly beating the expectation of a 160K drop. Importantly, the US Unemployment Rate in December dipped to 4.1% down from 4.2%.
In the currency exchange sphere, the US dollar has demonstrated strength against almost all major currencies, including the Euro, Chinese Yuan, Japanese Yen, and Indian Rupee. Notably, the Euro has grown by around 0.62%, the Yuan by 0.17%, the Yen by 0.35%, and the Rupee by 0.47% against the US dollar.
Crypto Market Scenario This Week
The total market cap of the cryptocurrency sector has recorded a drop of 5.86% in the last seven days, reflecting broader bearish sentiments in the industry. Similarly, the altcoin market has reported a more pronounced decline of 8.84%. Significantly, the total market cap of the crypto sector, excluding the top ten cryptocurrencies, has slipped by approximately 11.25%.
Bitcoin Market Overview
On January 6, Monday, the Bitcoin market peaked at $102,195.06. However, a sharp correction followed, resulting in a decline of 9.45% between January 7 and 9. By January 10, buyers made a concerted effort to regain control, resulting in a more modest growth of 2.34%. As it currently stands, Bitcoin is priced at $94,289.79—around 8.21% below the week’s peak.
Ethereum Market Scenario Analysis
Ethereum’s market experienced a peak of $3,743.68 on January 6. However, just like Bitcoin, it faced turbulence shortly after, suffering a massive single-day fall of 8.2% the following day. The market bottomed out on January 9 at $3,159.43. By the end of the week, similar to Bitcoin’s performance, Ethereum buyers fought back, leading to a small recovery of 1.46%. Currently, the Ethereum price is at $3,244.47—approximately 13.32% below its peak for the week.
Top Ten Cryptos: Weekly Performance Review
In the beginning of January 2025, none of the top ten cryptocurrencies showcased a clear bullish trend. Bitcoin has dropped by 3.8%, while Ethereum has seen a more substantial decline of 9.7% over the past week. XRP has dropped by 4.9%, BNB by 3.4%, while Solana has faced a dramatic 14.2% dip. Dogecoin decreased by 14.7%, and Cardano has continued its downward trajectory, declining by 14.8%.
Trending this Week
As of now, Binance Alpha Spotlight, Pump.fun Ecosystem, DeFAI, AI Meme, and Solana Meme are the five trending categories in the cryptocurrency universe. Impressively, DeFAI has registered an astonishing rise of 53.9% in the last 24 hours alone.
Additionally, ANDY, MEOW, Virtuals Protocols, Hey Anon, and aixbt by Virtuals are currently the top five trending cryptocurrencies. Intriguingly, Hey Anon has recorded a remarkable surge of 260.1% in the last seven days, signaling a potential breakout in the market.
Crypto Category Overview
Within the last week, the market cap of various cryptocurrency categories has tracked downward significantly. The currency category saw a decline of approximately 3.65%, while the chain category dipped by 9.37%. Meme coins experienced a pronounced fall of 15.8%, DeFi by 14.1%, blockchain infrastructure by 13%, and blockchain services by 7.74%. Other categories such as GameFi and NFT followed suit with declines of 11.3% and 13.2% respectively. However, not all segments are faltering; the market cap of stablecoins has seen a modest increase of 0.31%, while CeFi enjoyed a minor uptick of 1.98%.
