TAKING CENTER STAGE
Something notable that has occurred this year is the rise in popularity that digital assets like bitcoin have experienced, especially among institutional investors. In fact, U.S. spot-listed bitcoin ETFs have now surpassed Gold ETFs in assets under management, reaching $129.25 billion compared to Gold’s $128.88 billion. In addition, the CME exchange, popular with institutions, has also shown strong activity, with futures open interest nearing all-time highs at 212,635 BTC. The basis trade premium on the CME has risen to 16.4%, indicating anticipation of increased momentum. Moreover, U.S. spot-listed bitcoin ETFs have seen continual net inflows since November, totaling $6.5 billion, with a significant portion attributed to the cash and carry trade strategy.
POSITIVE TURN
Following the latest Federal Reserve signals slower rate cutting cycle, the 10-year Treasury yield has risen above 4.5%, indicating potential economic strength and supporting the Fed’s move to reduce rate cuts in 2025. This increase is accompanied by positive economic data, such as a drop in jobless claims to 220,000 and higher-than-expected U.S. GDP growth of 3.1% in the third quarter. These encouraging indicators suggest a stable economy, leading the Fed to implement a predicted quarter-point rate cut and revise its forecast to only two potential cuts in the future. Market expectations have subsequently shifted, with a reduced likelihood of further rate cuts in January now below 10%. Overall, these developments reflect a cautiously positive outlook on economic growth and future monetary policy adjustments.
TURBULENT PATCH
Bitcoin’s price has hit a turbulent patch as it hovered around $100,000 due to the Federal Reserve’s cautious stance on interest rate cuts impacting speculative investments in digital assets. The latest shift in monetary policy caused a ripple effect in the market, with other cryptocurrencies like Ether and Dogecoin struggling as well. Moreover, despite recent gains bolstered by President-elect Donald Trump’s support, some traders took profits on Bitcoin following the Fed meeting, leading to some short-term volatility and potential price dips.
POTENTIAL FOR GROWTH
A new player in the cryptocurrency market, DTX Exchange, is garnering attention for its potential for significant growth, drawing comparisons to the success stories of Cardano and Solana. With a remarkable surge of 500% during its presale phase and raising over $10.2 billion, DTX Exchange is positioned as a star in the making. The platform, scheduled to launch in Q1 2025, aims to revolutionize online trading by combining the best features of centralized and decentralized exchanges, offering a wide array of asset classes with leverage up to 1000x. Supported by innovative products like the VulcanX Blockchain and Phoenix Wallet, the DTX token has recently been listed on CoinMarketCap, signaling increasing credibility and interest from investors. The current price of the DTX token stands at $0.12, but experts speculate that it could reach $0.20 once listed on high-profile exchanges like Uniswap. Concurrently, Cardano has seen a notable price surge, reinforcing the positive sentiment surrounding promising altcoins in the crypto landscape.
INTERNATIONAL NEWS
The Bank of England has decided to keep interest rates unchanged following their final meeting of the year, a move influenced by a rise in U.K. inflation to an eight-month high. While expectations were for a rate hold, concerns about persistent services inflation and wage growth played a crucial role. A notable aspect of the decision was the split among the members of the Monetary Policy Committee, with three advocating for a rate cut and six in favor of maintaining the status quo. This divergence, along with a greater than anticipated inflation increase, has raised speculation about a possible interest rate reduction in February. Moreover, it is worth noting that the recent U.K. budget and potential trade tensions under the new U.S. administration are factors that could further impact the country’s economic stability.
