Market Review: Volumes Low as We Say Goodbye to 2024

Bitcoin started the week at $95,000 and finished the week at $93,400 with a loss of nearly 2%.

Ethereum is; It started the week at $3280 and closed at $3350 with an increase of over 2%. One of the main reasons why Ethereum diverged from Bitcoin was the inflow of Ethereum investments into spot ETFs during the week. Spot Bitcoin ETFs closed the four-day trading week with an outflow of $378 million; There was an inflow of close to $350 million in spot Ethereum ETFs. A pretty good money inflow on the Ethereum front for a quiet week.

Technical signals are not there yet for those who expect Ethereum to outperform Bitcoin, but this week’s positive money flow could be an important fundamental indicator. In order for technical signals to strengthen, these money inflows must continue steadily. It is especially important that the daily and weekly technical indicators in the ETH/BTC parity improve.

As we bid farewell to 2024, Microstrategy, one of the companies that left its mark on the year, will probably continue its acquisitions, which it has made a Monday classic. (Saylor’s tweet) Thus, the institution will add Bitcoin to its balance sheet for 8 consecutive weeks.

While Bitcoin has more than doubled its value since the beginning of the year; The share value of Microstrategy, which invested in Bitcoin by borrowing, increased almost 5 times (due to the leverage effect created by borrowing). Success here naturally attracts other institutions. Adopting a similar methodology, Metaplanet in Japan also continues to purchase BTC. It is very likely that we will see other institutions with similar strategies in the new year.

By the way, speaking of those that left their mark on the year, the top two most important events of this year are definitely; With the approval of spot Bitcoin ETFs, it is necessary to predict Trump’s victory in the presidential election.

An uncertain macroeconomic situation prevails for the coming year, with a combination of risks and opportunities. Many new stories are possible, such as the slowdown in the Chinese economy, inflation and interest rates on the US side, the decisions/sanctions to be implemented by the Trump administration, BTC becoming the reserve currency in the US, the increase in the number of countries following the footsteps of El Salvador or institutions following the footsteps of Microstrategy.

I wish a healthy and happy year for all of us.

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