What happened in cryptocurrencies this week? Cryptocurrency breakdown

Staying informed of market developments is essential to making informed financial decisions. This week witnessed remarkable shifts in global markets and the world Cryptocurrency sector.

Here’s a closer look at the highlights. One thing we can tell you – it’s been a tough week across the board!

Weekly update for the US market

The S&P 500 fell 2.02%, falling from $6,050.84 to $5,930.84. Other major markets followed suit, with Europe down 2.04%, China down 0.65%, and Japan, India, South Africa and Australia seeing similar trends.

Key developments in the United States include:

• Interest rate reduction: The Federal Reserve lowered interest rates by 25 basis pointsTo reach 4.25%-4.5%.
• GDP growth: GDP growth improved slightly from 3% in the second quarter to 3.1% in the third quarter.
• Unemployment claims: Initial jobless claims fell from 224,000 in early December to 220,000 in the second week.
• Core inflation: The core PCE price index fell month-on-month to 0.1% in November, down from 0.3% in October.

Additional indicators

Economic data provided mixed results:

• the New York Empire State Manufacturing Index It decreased from 31.2 to 0.2 points.
• the S&P Global Composite PMI Flash It rose sharply from 54.9 to 56.6 in December.
• the Monthly retail sales index The growth rate fell to 0.7% in November from 0.5% in October.
• Industrial production monthly It showed a smaller decline, improving from -0.4% to -0.1%.

Housing data remained weak, however NAHB Housing Market Index Fixed at 46 points and Housing begins It fell to 1.29 million units from 1.31 million.

The US dollar rose against major currencies, including the euro (+0.70%), the Chinese yuan (+0.27%), the Japanese yen (+1.78%), and the Indian rupee (+0.20%).

Cryptocurrency market performance this week

The market cap of cryptocurrencies declined by 8.2%, with the market capitalization of altcoins falling from $1.55 trillion to $1.39 trillion. Excluding Bitcoin and Ethereum, the market cap fell from $1.07 trillion to $969.31 billion. Cryptocurrencies outside the top 10 saw a sharp decline, with their market cap falling to $348.32 billion from $406.93 billion.

Bitcoin market overview

Bitcoin faced major challenges this week:

• Monday: It opened at $106,058.18.
• Thursday: It fell to a low of $97,461.38.
• Friday: It briefly fell to $92,198.03 before rebounding to close at $97,812.27. Bitcoin’s performance from December 16 to 20 saw a decline of 7.77%.

Ethereum market scenario analysis

Ethereum He also struggled:

• December 16: It opened at $3,988.87.
• December 19: It reached a low of $3,415.69, a decline of 14.36%.
• December 20: The price bottomed at $3,108.75 before rebounding to close at $3,471.16. Ethereum’s weekly performance fell by 12.97%.

The most important cryptocurrencies: highlights of the weekly performance

Most cryptocurrencies recorded losses:

• Dogecoin: Down 19.1%.
• Cardano: It decreased by 13.4%.
• Solana: Decreased by 12.5%.
• Ethereum: decreased 10.8%
• Bitcoin, XRP, BNB: They decreased by 3.9%, 6.0%, and 5.6%, respectively.

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Trending this week

Binance HODLer Airdrops, Circle Ventures Portfolio, Binance Launchpool, Binance Labs Portfolio, and Coinbase Ventures Portfolio are among the five most popular categories at the time of writing. Among these categories, Binance HODLer Airdrops shows the highest seven-day change at +181.3%.

Hyperliquid, LUKSO, Pudgy Penguins, Ethena, and Sui are among the five most popular cryptocurrencies. Among the top five, Hyperliquid displays The highest change in seven days at 54.6%.

Encryption class overview

In the past seven days, the Smart Contract Platform category has fallen by approximately 6.7%, Layer 1 by 6.0%, Proof of Work by 4.4%, Proof of Stake by 11.6%, Centralized Exchange Token by 4.1%, and DeFi by 9.9%. , Meme 16.9%, Liquid Storage 11.7%, Crypto-backed Tokens 16.9% 8.7%, Wrapped Tokens 8.6%, Decentralized Exchange 3.8%, AI 14.5%, DePIN 17.6%, NFT 21.4%, Tier 2: 13.1%, GameFi: 20.7%, Yield Farming 17.4%, Real Global Assets 8.9%, Tier 0 19%, Metaverse 20.7%, IoT 20.1%, Gaming Utility Tokens 19.5%, Game Governance Tokens 19.9%, Liquid Scking Governance Tokens 22.2% %, and Bridge Governance Coins by 18.6%.

Meanwhile, stablecoins grew by 0.8%, perpetual coins by 35.9%, Binance HODLer Airdrops by 181.3%, AI Agent Launchpad by 2.2%, and Virtuals Protocol Ecosystem by 13.9%.

A challenging week for the markets – can it bounce back?

Global markets, including the United States, Europe, China and India, saw declines along with an 8.2% decline in the cryptocurrency market. Bitcoin, Ethereum, and other major digital currencies recorded significant losses, while the US dollar strengthened against major currencies. Despite these challenges, stablecoins and perpetual currencies have shown resilience.

Market volatility may undermine confidence, but it also fuels the determination that drives long-term growth.