What Happened in Crypto This Week? A Crypto Crash Breakdown
Here’s a very brief update on what we’ve witnessed this week cryptocurrency market. Staying abreast of the latest developments in the market is crucial to making better decisions. Let’s analyze the market. Ready? Dive in!
US Market Weekly Update
The U.S. S&P 500 Index fell from $6,050.84 to $5,930.84, a decrease of 2.02%. Notably, all major markets including Europe, China, Japan, India, South Africa and Australia posted losses this week. Europe fell by 2.04%, and China fell by 0.65%.
This week, Fed cuts rates by 25 basis pointsbringing borrowing costs to a range of 4.25% to 4.5%. The final index of U.S. GDP growth increased slightly from 3% in the second quarter to 3.1% in the third quarter. The index of initial jobless claims in the United States fell sharply to 220,000 in the second week of December from 224,000 in the first week. The US core PCE price index fell to 0.1% in November from 0.3% in October.
In addition to this, several key indices were released this week. The New York Empire State Manufacturing Index fell to 0.2 points from 31.2 points in December. The US S&P Global Composite PMI Preview Index rose sharply from 54.9 to 56.6 in December. The S&P Global Manufacturing PMI Preview Index fell to 48.3 from 49.7 in December. At the same time, the US S&P Services PMI Preview Index surged to 58.5 from 56.1. The US retail sales index fell to 0.7% in November from 0.5 in October. U.S. industrial production improved slightly month-on-month, rising from -0.4% to -0.1%. The US business investor index increased to about 0.1% month-on-month in October. The US NAHB housing market index remained unchanged at 46 points in December. US API crude oil inventory changes fell from 1.232 million barrels in the last week of November to 4.7 million barrels in the first week of December. The U.S. housing starts index fell to 1.29 million units in November from 1.31 million units in October. The US Existing Home Sales Index jumped to 4.15 million units in November from 3.96 million units in October.
The U.S. dollar has performed strongly against almost all major currencies this week, including the euro, Chinese yuan, Japanese yen and Indian rupee. The euro rose 0.70% against the US dollar, the yuan rose 0.27%, the Japanese yen rose 1.78%, and the rupee rose 0.20%.
Cryptocurrency market conditions this week
The total cryptocurrency market capitalization fell by 8.2% this week. The altcoin market cap has dropped from $1.55T to $1.39T. The total cryptocurrency market capitalization, excluding Bitcoin and Ethereum, has fallen from $1.07T to $969.31B. The total market capitalization excluding the top ten cryptocurrencies has fallen from $406.93B to $348.32B.
Bitcoin Market Overview
Monday, December 16, bitcoin price to $106,058.18. On Thursday, it plummeted to a low of $97,461.38. At some point on Friday, the price dropped to $92,198.03. However, by the close, buyers had pushed the price to around $97,812.27. Between December 16 and 20, the market fell by at least 7.77%.
Ethereum market scenario analysis
December 16, Ethereum price Price is $3,988.87. By December 19, it fell to a low of $3,415.69, a sharp correction of 14.36%. At some point on December 20, the price dropped to $3,108.75. By the close, buyers had pushed the price to $3,471.16. Between December 16 and 20, the market fell by more than 12.97%.
Top 10 Cryptocurrencies: Weekly Performance Review
Almost all of the top 10 cryptocurrencies have declined over the past seven days. Dogecoin recorded its highest drop of 19.1% in 7 days. Cardano and Solana followed, with losses of 13.4% and 12.5% respectively. Ethereum fell 10.8%. Bitcoin, XRP and BNB fell 3.9%, 6.0% and 5.6% respectively.
Trending this week
As of this writing, Binance HODLer Airdrops, Circle Ventures Portfolio, Binance Launchpool, Binance Labs Portfolio, and Coinbase Ventures Portfolio are the top five popular categories. Among them, the Binance HODLer airdrop has the highest 7-day change, reaching +181.3%.
Hyperliquid, LUKSO, Pudgy Penguins, Ethena, and Sui are the top five popular cryptocurrencies. Among the top five, Hyperliquid demonstrated The highest change in 7 days was 54.6%.
Cryptocurrency Category Overview
In the past 7 days, the smart contract platform category is down approximately 6.7%, Layer 1 is down 6.0%, Proof of Work is down 4.4%, Proof of Stake is down 11.6%, and Centralized Exchange Tokens are down 4.1%, going Centralized finance decreased by 9.9%, Meme increased by 16.9%, liquid staking increased by 11.7%, cryptocurrency-backed tokens increased by 8.7%, Wrapped-Tokens Growth of 8.6%, decentralized exchanges growth of 3.8%, artificial intelligence growth of 14.5%, DePIN growth of 17.6%, NFT growth of 21.4%, Layer 2 growth of 13.1%, GameFi growth of 20.7%, Yield Farming growth of 17.4%, real world asset growth 8.9%, Tier 0 19%, Metaverse 20.7%, Internet of Things increased by 20.1%, game utility tokens increased by 19.5%, game governance tokens increased by 19.9%, Liquid Stake governance tokens increased by 22.2%, and Bridge governance tokens increased by 18.6%.
Meanwhile, stablecoins grew by 0.8%, perpetual coins by 35.9%, Binance HODLer airdrops by 181.3%, AI Agent Launchpad by 2.2%, and the virtual protocol ecosystem by 13.9%.
All in all, global markets including the United States, Europe, China, Japan, and India faced losses this week, with the cryptocurrency market also falling by 8.2%. Bitcoin, Ethereum and other major cryptocurrencies all posted losses. The Federal Reserve cuts interest rates by 25 basis points. The U.S. dollar strengthened against major currencies. Overall, it’s been a challenging week for both traditional and digital asset markets.
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