Weekly Market Recap: December 3rd – 8th 

Bitcoin’s Dynamic Rally Continues

Entering the first week of December 2023, the cryptocurrency market has been buoyed by a significant rally, with Bitcoin (BTC) taking the lead. On December 4th, BTC ascended above the $41,000 mark, fueled by Asian investors, and continued its ascent past $42,000 as European markets joined in. However, BTC has since stabilized around $41,500.

Market Sentiment: A Bullish Stance with Derivatives Indicating Growth

The derivatives market suggests potential further growth for Bitcoin, with a notable increase in BTC futures open interest, especially on the CME platform, favored by U.S. institutions. This bullish trend is further evidenced by the rising basis in CME futures contracts and the near-year-high BTC funding rate, underscoring the sustained positive market sentiment.

Ethereum’s Unprecedented Movements

Contrary to typical market trends, Ethereum (ETH) made significant moves earlier in the weekend, reaching its year-to-date high before Bitcoin, highlighting a shift in the market dynamics. Altcoins – specifically L1’s are starting to pick up in interest in volume as well. Checkout our altcoin option offerings to get positioned!

Rising Liquidity and Stablecoin Dynamics

On December 5th, the crypto market’s liquidity has shown an uptick, focusing on the total value in stablecoins, particularly Tether’s USDT. The increase in USDT circulation suggests a rising demand for crypto assets, signaling a bullish sentiment despite offsetting outflows from Circle’s USDC stablecoin.

Bitcoin’s New 2023 High Amid Global Economic Indicators

On December 6th, Bitcoin reached a new high for 2023, nearly hitting $44,500. This movement coincides with broader economic indicators, such as the decrease in U.S. job openings and a dip in U.S. 10-year treasury yields, shaping market expectations around the future of U.S. rate hikes.

Innovation in Banking: Société Générale’s Stablecoin Launch

In a groundbreaking move, Société Générale, France’s third-largest bank, has launched EUR CoinVertible (EURCV), the first publicly traded bank stablecoin. This development represents a significant stride in merging traditional banking with digital currencies, potentially paving the way for more innovative financial solutions.

Conclusion

The first week of December 2023 has been eventful for the cryptocurrency market, with Bitcoin leading a robust rally. The market is closely monitoring upcoming events and macroeconomic factors, maintaining a cautious yet optimistic outlook. The evolving landscape, marked by legal challenges, environmental discussions, and innovative financial products, continues to shape the trajectory of the cryptocurrency sector.

The week of December 10th will have several macro events to take note of: Including CPI and FOMC.