Crypto.com Weekly Market Update (Week 52, 21/12/2020 - 27/12/2020)
BTC ATH at $28.3K; ETH at $726; Large-cap rallied; volume grew while volatility plummeted.
Market Recap
Bitcoin continued its bullish run this week. After consolidating for a while around $22,000 - $23,800, it broke through resistance at $24,000 on Friday and then surged to the new all-time highs of $28,300 on Sunday. By the end of the week, it retraced to $27,200, with the 14-day RSI staying above 70, indicating that the strong uptrend might face some resistance in the near term.
Bitcoin’s market capitalization has passed $510B, and its dominance in the crypto space has risen to 70% again for the first time since September 2019. The aggregate open interest of Bitcoin futures also hit highs of $8.9B, indicating the market’s huge risk appetite.
Ethereum plunged from the highs of $640 to the lows of $550 on Wednesday, and then rebounded, rallying to new local highs of almost $720.
Overall, the price index rose considerably (+8.51%) and volume soared significantly (+17.14%), while the volatility index fell significantly (-39.02%).
Price Index
All prices fell except BTC (+12.96%), ETH (+7.29%) and XMR (+4.78%).
Top 3 losers: XRP (-48.57%), XLM (-15.56%), EOS (-15.54%)
Benchmark: BTC (+12.96%)
SEC charged Ripple with selling $1.3 billion in unregistered securities, which caused XRP to lose $2 billion in market value as its price plunged (ref). The lawsuit triggered the liquidation and delisting of XRP token from some exchanges (ref1, ref2, ref3).
BTC's price action over the holiday period is most likely driven by retail users but not institutions, according to Adam Black, CEO of Blockstream (ref).
Volume Index
All token volumes grew.
Top 3 increase: EOS (+71.74%), LINK (+32.17%), ATOM (+23.29%)
Benchmark: BTC (+19.84%)
Volatility Index
Most token volatility surged except BTC (-45.81%) and BNB (-2.31%). Due to the large weighting of BTC, it dragged down the overall index.
Top 3 increase: XMR (+94.30%), XRP (+93.97%), LINK (+62.75%)
Benchmark: BTC (-45.81%)
Top News
Bitcoin Tops $28K for 1st Time, Hours After Crossing $27K; Market Cap Now Exceeds $500B
BREAKING: SEC Sues Ripple, Accusing Company of Illegally Raising $1.3 Billion Through XRP
The Exchanges That Delisted XRP Following The Ripple SEC Lawsuit
UK Crypto Exchange EXMO Says $4M of Hacked Funds Was Through Poloniex