TL;DR

• BTC is up & ETH is down

• BTC over-performed ETH this week 

• Bitcoin dominance is up

• The hot coin we look at this week is $ATOM

Latest & Greatest 📰

Before we dive into the market update, make sure to check the latest and greatest news across crypto:

Make sure to follow us on X for continuous updates about all things Crypto, Blockchain and Web3.

BTC & ETH Market Update 📈

Crypto has been fluctuating this week, with BTC being up 0.1% and ETH down 3.7%:

Bitcoin dominance has increased over the week, starting from 52.0% to a high of 54.02% and ending at 52.9%. Investor sentiment, regulatory changes, technological advancements, and the overall growth of the cryptocurrency sector shape Bitcoin's market dominance. Its reputation as "digital gold" also enhances its position, making it a key player in the market.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

Bitcoin is poised for significant growth in 2025, with price forecasts ranging between $175,000 and $461,000.

Based on Fibonacci extensions and historical trends, Bitcoin is expected to follow its typical pattern of peaking at key Fibonacci levels. With strong buying pressure since November 2024, investor confidence remains high, and the long-term outlook remains bullish.

Bitcoin's price target for 2025 is forecasted to range from $173,646 to $461,135. This estimate is supported by past bull cycles and Fibonacci extensions, with Bitcoin historically peaking at the 1.618, 2.272, and 3.618 Fibonacci levels.

If macroeconomic conditions remain stable, Bitcoin is likely to reach at least $173,646, with a potential to hit $461,135.

Bitcoin's price has remained above $95,000 since November 2024, signaling strong investor confidence.

Although short-term volatility may occur, long-term expectations for Bitcoin’s price in 2025 are optimistic. Unless significant macroeconomic disruptions occur, Bitcoin is expected to continue its upward trajectory.

Miners have shifted towards consistent hodling, with only 3,700 BTC sold in 2024, compared to 41,000 BTC in 2021. This change in behavior suggests a long-term outlook, potentially supporting Bitcoin’s price. Miners' continued accumulation of Bitcoin could further drive upward price momentum.

Despite Bitcoin's $2 trillion market cap, miners have earned only 3.6% of this value, with $71.49 billion accumulated in total. Most of their earnings come from block subsidies rather than transaction fees. This highlights the reliance on block rewards as a primary income source.

Bitcoin’s transaction volume has reached $131.25 trillion, with $4.18 billion coming from transaction fees. Miners primarily generate revenue from block rewards, underlining their key role in the network’s security.

Bitcoin’s long-term growth remains promising, supported by miner resilience and market dynamics. The price forecast for 2025 is expected to range from $173,646 to $461,135, as Bitcoin continues its upward momentum. Miners, although earning a small share of the total market cap, continue to benefit from Bitcoin’s increasing value, securing the network for future growth.

Ethereum (ETH), on the other hand, has experienced a 7.50% surge, reaching around $3,940, driven by multiple factors.

The release of the US Consumer Price Index (CPI) report for November, which showed a 0.3% increase, reinforced expectations of continued interest rate cuts by the Federal Reserve, making riskier assets like Ethereum more attractive.

Additionally, Ethereum ETFs saw continuous inflows, with $1.67 billion added since November 21, pushing total assets under management to a record high of $1.98 billion by December 12, signaling strong institutional demand.

On December 12, the World Liberty Financial Initiative (WLFI), a DeFi project linked to US President-elect Donald Trump, purchased $10 million worth of ETH, further boosting market sentiment.

Technically, Ethereum's breakout from a cup-and-handle chart pattern, with a resistance level at $3,340.50, suggests a potential upside target of $5,120, indicating strong bullish momentum.

These factors combined suggest that Ethereum’s price could continue rising, potentially reaching the $5,000 mark by December.

Ethereum (ETHUSD) Analysis:

As of December 13, 2024, Ethereum is testing the $4,000 resistance level, with recent price action hovering around $3,918. The price is currently within a horizontal trend channel, signaling indecision in the market. Immediate support is at $3,700, while resistance remains at $4,000. Despite the positive signal from the moving average indicator, low volume at price peaks raises concerns over the strength of the bullish move, suggesting a potential pullback if resistance holds.

Bitcoin (BTCUSD) Analysis:

As of December 13, 2024, Bitcoin (BTC) is trading at $100,051. The short-term outlook is positive, with resistance at $98,000 broken and the next target between $105,670 and $108,490. In the medium term, Bitcoin has strong support at $70,000, and the price objective of $84,547 has been met. The long-term trend remains bullish, with support at $72,000 and no immediate resistance, indicating further potential upside.

Expected Trading Ranges:

• Ethereum (ETH): Support at $3,700; Resistance at $4,000.

• Bitcoin (BTC): Support at $96,788.87; Resistance at $105,670 - $108,490.

Market Outlook:

Bitcoin (BTC) is trading at $100,051, with resistance at $105,670 - $108,490 and support around $70,000. The medium-term target is $115,000. For 2025, price predictions range from $175,000 to $461,000, supported by historical trends, investor confidence, and miners holding their BTC. This, along with Bitcoin's growing global role and strong network security, suggests continued upward momentum.

Ethereum's outlook is optimistic, holding above support at $3,700 and testing resistance at $4,000. The moving average signals an upward trend, though low volume at price peaks raises concerns. Ethereum has risen 7.50% to $3,940, fueled by positive US inflation data, rate cut expectations, record ETF inflows, and a $10 million purchase by the World Liberty Financial Initiative (WLFI), suggesting potential for further gains, possibly reaching $5,000 by December.

BTC/ETH ratio has seen an increase:

The BTC to ETH conversion rate has experienced a steady increase over the past six days. Starting from 24.94 ETH per Bitcoin on December 07, the rate gradually rose, reaching 26.00 ETH on December 13. This represents an increase of approximately 4.2% during this period, with some fluctuations along the way.

For deeper insights and updates on Bitcoin and Ethereum, make sure to subscribe to our Premium Newsletter.

Hot Coin: ATOM 🔥

In this week’s newsletter, we dive into Cosmos Hub’s token with the ticker: $ATOM.

The price action and volume have been growing consistently and don’t seem to stop any time soon:

What is the project about?

Cosmos Network is known as the “Internet of Blockchains”, allowing builders to create their own blockchains (“app chains”) and easily communicate with each other using IBC - Inter-Blockchain Communication Protocol.

Cosmos Hub is the first and arguably most important app chain in the Cosmos ecosystem, with the native token ATOM.

With ATOM, you have the superpower to contribute to the security and governance of the Cosmos Hub. Delegate your ATOM to one or more of the validators on the Cosmos Hub blockchain to earn more ATOM through Proof-of-Stake. You can also vote with your ATOM to influence the future of the Cosmos Hub through on-chain governance proposals.

In other words, if you are interested in Cosmos you are most likely going to use or buy ATOM.

Why is the project exciting now?

There are four main reasons why we feature this project in this week’s newsletter and look at it as an attractive buy right now:

• Airdrops

• Partial Set Security

• Tokenomics

• Interchain Foundation’s Acquisition of Skip

Subscribe to WAGMI Premium to read the rest.