Weekly Crypto Recap After CPI Data

What a week it was for the entire cryptocurrency market. Let’s start and focus on Bitcoin.

The primary cryptocurrency began the trading week with a massive price correction that pushed it south by several grand within a day. There were warning signs about a potential drop below $90,000, and that transpired later in the day.

This marked BTC’s first decline to sub-$90,000 levels since November. However, bitcoin reacted well to this crash and bounced off by $7,000 within less than 24 hours. More volatility was expected mid-week when the US CPI numbers for December were scheduled to go live.

Although the regular and Core CPI were around 3% YoY, BTC and the rest of the market started to gain value after the announcement. BTC neared $100,000 by the end of the day and surpassed that level on Thursday and Friday. In fact, it registered a multi-week peak of roughly $103,000 earlier today. As such, it managed to add nearly $14,000 since the Monday low in the span of less than a trading week.

Many altcoins posted similar and even more impressive gains within the same timeframe. Ripple’s native token stole the show once again. It bottomed at $2.33 on Monday but went on a wild run within the next 72 hours that pushed it to $3.39 (on most exchanges). Thus, XRP came less than 1% away from breaking its 2018 all-time high of $3.4 (according to CoinGecko).

As the graph below demonstrates, the weekly market picture is quite favorable, with numerous massive beneficiaries. Aside from XRP, the other double-digit gainers include DOGE, SOL, ADA, XLM, LINK, AVAX, SHIB, HBAR, and more.

Market Data

Market Cap: $3.755T | 24H Vol: $185B | BTC Dominance: 54.1%

BTC: $102,700 (+9.5%) | ETH: $3,415 (+4.75% ) | XRP: $3.27 (+42%)

This Week’s Crypto Headlines You Can’t Miss

Tether to Relocate Business to El Salvador Following Acquisition of DASP License. The Bitcoin-friendly small Central American nation continues to absorb digital asset businesses. The latest to move a sizeable portion of its operations, in this case its headquarters, is Tether, which will relocate after it acquired a Digital Asset Service Provider (DASP) license in the country.

Italy’s Largest Bank Makes History With €1M BTC Purchase: Report. In contrast to the overall controversial stance of the local government on crypto, Italy’s largest banking organization – Intesa Sanpaolo, has reportedly acquired 11 BTC by spending just over $1 million.

Litecoin Surges 17% as Whales Accumulate on Spot ETF Hopes. With the upcoming pro-crypto change in the US administration, numerous altcoins are rumored to receive the green light to have their own exchange-traded funds. Litecoin emerged as this week’s most popular choice, and LTC’s price skyrocketed in response by double-digits.

Ripple v SEC Case Takes New Turn: Agency Appeals 2023 Decision—What’s Next? The US Securities and Exchange Commission formally appealed a 2023 ruling by Judge Torres indicating that the sales of XRP tokens on crypto exchanges did not break securities laws. The appeal came at the last minute of the allowed deadline, even though the SEC’s leadership will change within days.

Trump Plans to Designate Crypto as a National Priority: Report. With just days left ahead of Trump’s inauguration and his numerous pro-crypto promises made during the presidential campaign, reports now emerge left and right suggesting that he will make good on those claims starting from day one. The latest on the matter indicates that he will make crypto a national priority.

Institutional Bitcoin Accumulation Surges on Coinbase as BTC Taps 10-Day High. BTC’s price movements have been particularly susceptible to the investment strategies of US-based market participants. Consequently, its recent rise could be largely attributed to the growing deals on US exchanges, such as Coinbase.

Charts

This week, we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Solana – click here for the complete price analysis.