Daily News | BTC Experiences Short-term Sell-off After Breaking $100,000, Altcoins Continue to Rise

Crypto Digest: After initial declines, the cryptocurrency market surged again following the appointment of David Sacks, co-founder of PayPal, as head of the crypto sector by Donald Trump, with Altcoin sectors seeing broad gains.

On December 5, Trump announced his nomination of Paul Atkins for chairman of the U.S. Securities and Exchange Commission (SEC). David Sacks, a South African-American entrepreneur and investor in tech companies, previously tweeted in 2018 expressing optimism about the decentralized trading infrastructure 0x, leading to a 30% increase in the protocol’s token, ZRX, within 24 hours.

U.S. Job Market Remains Stable Despite Rise in Initial Jobless Claims:

December 5, the U.S. Labor Department reported an increase in initial jobless claims last week. For the week ending November 30, claims rose to 224,000 from 215,000 the previous week.

Financial Times Issues Apology for Negative Reporting on Cryptocurrency

The Financial Times’ Alphaville column published an apology for potentially instilling skepticism about cryptocurrencies in readers due to its negative coverage over the past 14 years.

MicroStrategy’s Bitcoin Holdings Exceed $40 Billion, Current Unrealized Gains Over $16.7 Billion

According to a recent report, MicroStrategy’s Bitcoin holdings have reached a market value of $40.27 billion, marking a historic high. At the current price of $100,011.64, MicroStrategy’s unrealized gains amount to approximately $16.79 billion.

Since Trump’s Election, U.S. Spot Bitcoin ETF Sees Over $8 Billion in Net Inflows

According to Bloomberg, this year, U.S. spot Bitcoin ETFs have attracted around $32 billion in net inflows, with over $8 billion coming since Trump’s election.

Market Analysis: BTC Falls Below $100,000, Altcoins Continue to Rise

Market Highlights:

-The altcoin sector continues to experience broad gains, with AI, DePIN, Layer 2, and RWA sectors leading the way.

-Last night, XION was listed on several exchanges, including Gate.io. XION focuses on a Layer 1 blockchain eco aimed at creating a wallet-free user experience. Click there to trade.

-Popular tokens such as RENDER, NEIRO, MORPHO, SUNDOG, MOODENG, ALGO, SAND, and MOG saw price increases due to listings on major exchanges.

-Some altcoins have surged over 250% within the last 30 days, including HBAR, XLM, XRP, ALGO, and ADA. The funding rate for perpetual futures contracts has risen to between 4% and 6% per month, reflecting increased leverage usage. and indicating a potential for significant price corrections. While high funding rates suggest optimism and further growth potential for altcoins, they also increase trading risks, contrasting with the more moderate leverage observed in major cryptocurrencies like BTC and ETH.

-Gate.io is set to launch the MOVE (Movement) spot on December 9, which is based on the popular parallel Move-EVM protocol.

Market Trends:

-After breaking through $100,000, BTC faced a short-term sell-off, dropping to around $90,000, but has since recovered to above $98,000. Following the liquidation of some aggressive long positions, BTC has shown a more moderate leverage level, providing a foundation for the continued rally in altcoins. Positive capital inflows remain, with Trader T monitoring $780.78 million in net inflows into U.S. spot Bitcoin ETFs yesterday.

-ETH also experienced a dip before rebounding, currently targeting $3,900, with a 24-hour increase of 2.10%. The ETH spot ETF has consistently seen significant net inflows, indicating growing bullish sentiment in the market.

-During BTC’s sharp decline last night, altcoins demonstrated relative resilience, highlighting the current “Alt Season.” WLD’s price surged over 30% in 24 hours, influenced by product updates from OpenAI.

Macro: Focus on Tonight’s Non-Farm Payroll Data as U.S. Stock Indices Rise

Last night’s data showed a slight increase in U.S. initial jobless claims, indicating a steady job market and lower expectations for interest rate cuts. This led to a collective decline in the three major U.S. stock indices, although many large tech stocks continued to rise, reflecting a shift in market risk appetite.

Tonight’s non-farm employment report for November will provide a comprehensive view of the U.S. economic situation ahead of the Federal Reserve’s monetary policy meeting in December. The unemployment rate is expected to remain unchanged at 4.1%, with a potential rise to 4.2%, depending on the job-seeking behavior of laid-off workers and new entrants. If the non-farm report shows strong economic performance similar to the recent jobless claims data, the likelihood of the Federal Reserve pausing interest rate cuts may increase.

Additionally, following Trump’s nomination of Paul Atkins for SEC chairman, he appointed David Sacks as head of the crypto sector. This series of appointments has led to a short-term rally in the cryptocurrency market. Market expectations are that, under Trump’s administration, the crypto sector will experience a significant easing of regulatory conditions, fostering a more favorable environment for growth.