Bitcoin Battles for $100K, Christmas Rally Incoming? (Your Weekly Crypto Recap)

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As a seasoned analyst with over two decades of experience in the financial markets, I can confidently say that this week has been another rollercoaster ride in the cryptocurrency industry. The unpredictable nature of Bitcoin‘s price action is something I have grown accustomed to, and it never fails to surprise me.

This week in the cryptocurrency world hasn’t been overly enjoyable, with most assets experiencing a downturn. The setbacks are generally manageable, but certain alternative coins are clearly under strain. Let’s discuss Bitcoin first, as usual.

Last week, the main cryptocurrency experienced significant fluctuations. Over the weekend, it surged above $101,000, but when the new week commenced, its progress wasn’t as seamless. On Monday, its value started to decline, and at one point, it nearly dropped to around $94,000.

It turns out that many people were predicting an end to the bull market at that time. However, those who were optimistic about its continuation quickly stepped in to buy up the dip within a few days. The price of Bitcoin surged toward $103,000 the day before but couldn’t maintain that level, and now it’s fighting to regain the significant $100,000 mark again.

In other news, if you assumed Michael Saylor wouldn’t buy more Bitcoin within a week, you might want to reconsider. MicroStrategy has just made another significant purchase, this time for approximately $2.1 billion in Bitcoin (BTC). They bought 21,550 BTC at an average price of around $98,782, bringing their total holdings up to a staggering 423,650 BTC. This means that the company stands to gain or lose close to half a million dollars every time Bitcoin’s value fluctuates by a single dollar. Quite an exciting ride!

BlackRock, a financial giant, has also shown support for the ongoing event. Experts from their team suggest that devoting 2% of a diversified investment portfolio to Bitcoin could be a sensible choice. You may wonder why this matters? Well, they manage an enormous amount of funds. In fact, they oversee more money than any other asset management firm. When they speak, people usually pay attention. Here, their endorsement of Bitcoin might encourage other institutional investors to explore this digital currency as well.

To summarize, the past week has been quite intriguing regarding market fluctuations, and if you’re invested in altcoins, a significant portion of your investment may be experiencing a downturn. The majority appear to be showing negative growth. While most of these losses aren’t drastic, there are some instances where they are more substantial.

Currently, it’s worth exploring the potential for a festive season stock market surge, often referred to as a “Christmas Rally.” Here are some reasons that support this hypothesis:

  1. The Fed is expected to cut rates again.
  2. Bitcoin’s supply cycle is in mid-swing, straight up.
  3. The EOY sales bump.
  4. Pro-Bitcoin Republicans soon take over Washington.

Market Data

Market Cap: $3.81T | 24H Vol: $264B | BTC Dominance: 52.5%

BTC: $101,136 (+1.2%) | ETH: $3,932 ( -2% ) | XRP: $2.43 (+4%)

This Week’s Headlines You Can’t Miss

Over the past year, U.S.-based Bitcoin exchange-traded funds (ETFs), which began operation in January, have seen significant expansion. The combined total of Bitcoins poured into these 12 ETFs now exceeds half a million, amounting to approximately $50.5 billion.

Could it be that Bitcoin Price experiences a ‘Santa Claus Rally’ in December? Here are five potential factors suggesting a possible recovery ahead.

After a significant purchase worth $2.1 billion, MicroStrategy, known for its substantial Bitcoin holdings, has added another 21,550 BTC to its stockpile. This brings the total to approximately 423,650 BTC, making it the world’s largest corporate Bitcoin holder at an average price of about $98,782 per coin.

According to reports, Ray Dalio, a prominent American investor and head of the global hedge fund Bridgewater Associates, has chosen to allocate his investments towards Bitcoin (BTC) and gold, as opposed to debt-based assets.

In 2025, Representative French Hill is set to take over as the head of the House Financial Services Committee, replacing Patrick McHenry from North Carolina who is stepping down from his role after serving for twenty years in Congress and leading the committee’s Republican members for a significant portion of that time.

Hester Peirce, an SEC Commissioner, proposes changes in the regulation of cryptocurrencies under the leadership of the SEC during Donald Trump’s presidency.

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2024-12-13 20:08