#107 On-chain Insights by IT Tech - Week 50 Highlights & Bitcoin Analysis
Bitcoin Dominance Rises Amid Altcoin Resilience and Stablecoin Inflows
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Table of contents:
Partnership with WymienBitcoina.pl
Crypto Weekly: Top 10 News
Current market situation
Altcoin season performance
Correlation between USDT and USDC market caps and Bitcoin price
🚀 Giveaway Alert - prizes of 100$
Taker Buy Sell Ratio Indicates Bullish Momentum, but Caution Advised for Potential Correction
Paid newsletter subscription - support content development
Newsletter issue summary and forecast
1. Partnership with WymienBitcoina.pl
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2. Crypto Weekly: Top 10 News.
Coinbase Announces Enhanced Privacy Features: Coinbase has rolled out new privacy features that allow users more control over their personal data and transaction history. The company aims to address privacy concerns amid increasing regulatory scrutiny.
Trump's Crypto Fund Investments: Trump's World Liberty Financial Initiative has made significant investments in various cryptocurrencies including Ethereum (ETH), Chainlink (LINK), AAVE, and ENA tokens, spending millions in USDC.
Sheila Warren Departs from CCI: Sheila Warren, the CEO of the Crypto Council for Innovation, is stepping down in January 2025 to become a Senior Global Policy Advisor, with Ji Kim set to replace her as President and Acting CEO.
MicroStrategy's Continued Bitcoin Acquisition: MicroStrategy has purchased an additional $2.1 billion worth of Bitcoin, further solidifying its position as a major corporate holder of the cryptocurrency.
SUI Enters Top 15 by Market Cap: The SUI token has surged, entering the top 15 cryptocurrencies by market capitalization, with discussions around it potentially overtaking other established coins in market cap rankings.
Solana Leads in New Developers: In a significant shift, Solana has attracted more new developers than Ethereum in 2024, according to Electric Capital's Developer Report, highlighting its growing ecosystem.
Taipei Blockchain Week 2024: The event concluded with a focus on blockchain technology, including discussions on intellectual property in Web3, and the launch of new projects like the Creators Fund.
Ripple's RLUSD Stablecoin: Ripple has received the green light to launch trading for its RLUSD stablecoin, potentially strengthening its position in the stablecoin market.
Coincheck Aims for NASDAQ Listing: The Japanese cryptocurrency exchange Coincheck is preparing for a NASDAQ listing, which could bring more traditional investment into the crypto space.
OpenSea's $10B Trading Volume Milestone: OpenSea, one of the largest NFT marketplaces, has surpassed $10 billion in total trading volume since its inception, signaling sustained interest in NFTs despite market fluctuations.
3. Current market situation.
Taking profits on ETH and altcoins was spot on. Some positions have already been repurchased, which means I now hold more tokens for the same amount of $. I consistently stick to my plan and take profits at specific levels, as no one can perfectly time the market's tops or bottoms.
During corrections, weak hands tend to sell off—a concept I’ve highlighted in my posts on X. These moments in a heated bull market are for accumulating, not panic selling. That’s why it’s always essential to keep stablecoins in your portfolio. Remember, money makes more money.
The Bitcoin Fear & Greed Index currently stands at 80, indicating extreme greed among market participants. This slight recovery from recent fluctuations suggests heightened bullish sentiment, often observed during extended price rallies. However, historically, levels above 80 have sometimes preceded short-term corrections as over-optimistic sentiment can signal potential market overheating. Traders should monitor this closely while considering broader market dynamics.
Bitcoin's market dominance has risen to 57.27%, marking a recovery from recent lows and indicating a slight shift back towards Bitcoin as the preferred asset. Meanwhile, TOTAL2, representing the total market capitalization of altcoins (excluding Bitcoin), has increased to USD 1.52 trillion, reflecting a modest +0.33% gain this week.
This recovery in dominance suggests Bitcoin is regaining attention, potentially due to renewed confidence or reduced risk appetite in the market. Despite this, the positive movement in TOTAL2 highlights continued resilience in the altcoin market, indicating a balanced capital flow across the broader cryptocurrency space. The coexistence of Bitcoin dominance recovery and altcoin market expansion points to a phase of diversified interest.
4. Altcoin season performance.
The chart indicates that 43 out of 57 tracked altcoins have outperformed Bitcoin over the past 60 days. Stellar (XLM), XRP, and Algorand (ALGO) lead the pack with impressive returns of 337%, 240.2%, and 219.6%, respectively.
Bitcoin's relative performance stands at 52.2%, underscoring the strong dominance of altcoins in the current market environment. However, with a slight pullback in the Altcoin Season Index, the data suggests some capital rotation back into Bitcoin, reflecting a mixed sentiment across the crypto market.
Altcoin Season Index:
The Altcoin Season Index shows that while we remain close to "Altcoin Season" territory, there is noticeable cooling, with the percentage of altcoins outperforming Bitcoin decreasing to 43 out of 57 tracked altcoins.
This slight pullback indicates some profit-taking and a shift in market dynamics, as Bitcoin regains strength and altcoins face a temporary slowdown. Despite this, the broader trend still highlights substantial interest in the altcoin market, keeping the potential for further growth alive.
5. Correlation between USDT and USDC market caps and Bitcoin price.
Rising stablecoin market capitalization (USDT and USDC) typically correlates with increasing Bitcoin prices, indicating higher market liquidity and demand.
Conversely, declining stablecoin market capitalization often signals increased crypto selling and lower liquidity, potentially leading to Bitcoin price decreases.USDT Daily Market Cap Change (in million USD):
2024-12-09: +242.17M USD
2024-12-10: +307.19M USD
2024-12-11: +1.12B USD
2024-12-12: +355.63M USD
2024-12-13: +834.65M USD
2024-12-14: -97.45M USD
Net USDT Market Cap Change (9-14 Dec 2024): +1.93 billion USD
USDC Daily Market Cap Change (in million USD):
2024-12-09: -470.72M USD
2024-12-10: +122.07M USD
2024-12-11: +708.26M USD
2024-12-12: -29.20M USD
2024-12-13: +484.06M USD
2024-12-14: -1.52M USD
Net USDC Market Cap Change (9-14 Dec 2024): +812.95M USD
Net Market Cap Change for USDT and USDC (9-14 Dec 2024): +2.74 billion USD
Conclusion:
From December 9 to December 14, 2024, USDT and USDC together witnessed a net inflow of approximately 2.74 billion USD into their market capitalizations. This significant inflow underscores the continued confidence in the stablecoin sector, reflecting robust liquidity entering the broader cryptocurrency market.
Although the combined inflow is slightly lower than the previous week's 4.92 billion USD, the consistent increase highlights sustained investor demand. This liquidity inflow aligns with Bitcoin's strong performance above $96,000 and the overall bullish sentiment across the market. The data suggests stablecoins remain a critical tool for market participants, providing both stability and flexibility, which are essential for driving further growth in the crypto ecosystem.
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7. Taker Buy Sell Ratio Indicates Bullish Momentum, but Caution Advised for Potential Correction.
Taker Buy/Sell Ratio - The ratio of buy volume divided by sell volume of takers in perpetual swap trades.
Values over 1 indicate bullish sentiment is dominant.
Values under 1 indicate bearish sentiment is dominant.The Taker Buy Sell Ratio has spiked above 1.12, indicating dominant buying pressure in perpetual swap trades. Historically, such values are often associated with periods of strong bullish momentum, reflecting heightened buyer confidence and potential price gains.
The consistent upward trajectory in Bitcoin's price aligns with this increased buying activity, suggesting that market sentiment remains firmly optimistic. However, traders should monitor for potential overextensions, as sharp surges in this metric have sometimes preceded short-term corrections.
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9. Newsletter Issue Summary:
Partnership with WymienBitcoina.pl: Collaboration with WymienBitcoina.pl offers lower fees for trading over 190 cryptocurrencies, supported by expert staff. Use the code IT TECH for discounts.
Crypto Weekly: Top 10 News: Key updates include MicroStrategy’s $2.1B Bitcoin purchase, Coinbase privacy features, and Ripple's RLUSD stablecoin launch.
Current Market Situation: Bitcoin Fear & Greed Index at 80 signals extreme greed. Bitcoin dominance rebounds to 57.27%, while altcoins remain resilient with TOTAL2 rising by +0.33%.
Altcoin Season Performance: 43 out of 57 altcoins outperformed Bitcoin. Stellar (XLM), XRP, and Algorand (ALGO) lead with 337%, 240.2%, and 219.6% gains, respectively.
Stablecoin and Bitcoin Correlation: USDT and USDC market caps increased by $2.74B last week, reflecting strong liquidity inflows and aligning with Bitcoin's bullish momentum.
Taker Buy Sell Ratio: A ratio above 1.12 suggests bullish sentiment. Traders should remain cautious, as spikes in this ratio can precede corrections.
Forecast for the Upcoming Week:
Bitcoin may experience short-term consolidation as the Fear & Greed Index nears extreme levels.
Stablecoin inflows suggest robust liquidity, potentially supporting price levels above $96,000.
Altcoins may see mixed performance as Bitcoin regains dominance.
Monitoring the Taker Buy/Sell Ratio is critical to gauge any potential correction risks.
Macro events in the US and EU could impact broader market sentiment.
Stay alert and monitor key indicators for better market insights. Track upcoming US and EU events for free using the Economic Calendar.
Remember to realise profits regularly.💡
This concludes this issue. I hope you have a pleasant end to your weekend and a great week ahead. If you found this article helpful, leave a like 💙 comment and share it on your social media. 🤝
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This article reflects my personal views and is not investment advice. Cryptocurrency investments carry high risk. It includes mentions of WymienBitcoina.pl and affiliate links that may benefit the author.
Best regards
IT Tech