📉 Crash on the crypto market: The end of the bull run or just a jolt?
Welcome to the Daily Tribune of Tuesday, December 10, 2024 ☕️
Hello Cointribe! 🚀
Today is Tuesday, December 10, 2024, and as every day from Tuesday to Saturday, we summarize the news from the last 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Rainy 🌧️
24h crypto recap! ⏱
🇸🇻 El Salvador may rethink its stance on Bitcoin 📉
El Salvador, the first country to adopt Bitcoin as legal tender, is considering abandoning the requirement for businesses to accept this cryptocurrency. This modification would be a condition set by the IMF as part of negotiations for a $1.3 billion loan. Currently, merchants must accept Bitcoin if their technical means allow it, but the population largely prefers the US dollar for its daily transactions due to network fees and the volatility of Bitcoin.
Despite this, the country continues to bet on crypto-assets by accumulating 1 BTC per day and developing infrastructures such as geothermal mining. A relaxation of the law could influence economic attractiveness for foreign investors, particularly cryptocurrency enthusiasts.
🚨 The crypto market tips into the red: simple correction or end of the bull run?
After reaching a historic high of $103,900, Bitcoin quickly fell to $98,015, leading to a widespread drop in cryptocurrencies. This brutal correction was triggered by massive sell-offs, notably by the government of Bhutan ($40 million) and Justin Sun ($119 million in Ethereum). Over 204,000 positions liquidated, representing $509.48 million, exacerbated the volatility. Worrying signals also include the hacking of the Cardano Foundation's account.
However, some altcoins like PEPE and X Empire are resisting with impressive performances, suggesting a possible altcoin season. Analysts are divided: for some, this pullback is a pause in a long-term bullish market, while others fear a more prolonged bearish phase. Upcoming macroeconomic indicators will be crucial to determining the market's evolution.
🛒 Amazon and Bitcoin: a revolutionary turn on the horizon for 2025?
An influential think tank, the National Center for Public Policy Research (NCPPR), is proposing that Amazon invest 5% of its cash in Bitcoin, or approximately $4.4 billion. The argument is based on Bitcoin's ability to protect asset value against rampant inflation and to offer exceptional returns, having recorded a growth of 1,246% over five years.
Inspired by the example of MicroStrategy, which generated $17 billion in profits from its Bitcoin strategy, this proposal aims to position Amazon as a key player in the digital economy. The decision will be debated at the general assembly in April 2025, a potential turning point for the institutional adoption of cryptos. However, the risks associated with Bitcoin's volatility raise questions about the balance between financial innovation and prudent asset management.
📊 Bitcoin faces three critical US economic indicators this week
Bitcoin could experience a decisive week with the release of three major US economic indicators. First, the Consumer Price Index (CPI) will be scrutinized on Wednesday, as an increase beyond expectations (0.3%) would strengthen the perception of BTC as a hedge against inflation. Next, the initial jobless claims, scheduled for Thursday, will reveal the health of the labor market. An economic slowdown could push investors toward alternative assets like Bitcoin. Finally, the Producer Price Index (PPI), also expected on Thursday, will play a role in anticipating Federal Reserve policies. A rise in the PPI could fuel fears of prolonged inflation, directly impacting Bitcoin's appeal.
This data comes at a strategic moment, just before a key Fed meeting, making this week critical for crypto investors.
Crypto of the day: Ondo (ONDO)
Ondo stands out with its innovative DeFi platform enabling the creation of fixed-yield loans, isolated from risks, backed by income-generating crypto assets. This protocol operates permissionlessly and establishes peer-to-pool interactions, eliminating any intermediary.
The native crypto ONDO plays a central role in the functioning of this ecosystem by rewarding users and facilitating interactions within the network. Distributed across exchange platforms and decentralized financing mechanisms, it offers benefits such as rewards for staking and reduced transaction fees. Holders can use it to access premium services and participate in the governance of the protocol.
Recent performance
Current price: €1.63
24h change: +6.35%
Market capitalization: €2.33 billion
Rank on CoinMarketCap: #67
Technical analysis: Bitcoin (BTC)
Bitcoin recently crossed the symbolic level of $100,000, reaching a historic high just below $104,000, before experiencing strong selling pressure. This movement led to a sharp drop to $91,000, confirming the importance of this level as a key support. After a partial rebound to $101,400, Bitcoin retreated again to $94,600, highlighting concerning volatility. Despite this instability, medium and long-term technical indicators remain positive, notably the 50 and 200-day moving averages, which maintain a bullish orientation. However, signs of short-term exhaustion and bearish divergence suggest the possibility of a reversal or imminent correction.
On the derivatives front, BTC/USDT perpetual contracts show a lack of new capital inflow, associated with a reduction in speculative positions. The funding rate indicates a slowdown, while significant liquidations have been recorded around the $100,000 and $90,000 levels.
If it maintains above $90,800, Bitcoin could aim to break through $101,400 to reach a new ATH at $104,000, or even $108,477. Conversely, a drop below $90,800 could open the way to support around $87,000, $85,000, and potentially $81,500. Despite these fluctuations, the overall trend remains positive, although a correction is considered a healthy adjustment for the market.