Week of December 17-23, 2024
BlackRock, the world's largest investment management firm, recommends allocating 1-2% of one's portfolio to Bitcoin (BTC). While this increases risk, the potential returns are considered worthwhile and comparable to investments in the seven largest tech stocks, also known as the Magnificent 7 Stocks.
VanEck predicts that the mid-term peak of the cryptocurrency market may occur within the first quarter of 2025 before a possible decline. However, the market may still eventually reach a new all-time high by the end of the same year. Bitcoin is speculated to peak at $180,000, Ethereum (ETH) at $6,000, while Solana (SOL) and Sui (SUI) may reach $500 and $10, respectively.
David Solomon, CEO of Goldman Sachs, said he would reassess investment decisions in Bitcoin and Ethereum if regulations in the U.S. become clearer.
Bridgewater Associates founder Ray Dalio recommends investing in Bitcoin and gold while avoiding investments in debt assets such as bonds due to rising debt problems in the global financial system, especially in the U.S. and China, where tangible assets (hard assets) could help hedge against risk.
Microsoft shareholders voted against a proposal to add Bitcoin to the company’s balance sheet during its annual meeting, citing that the proposal had been carefully considered and that price volatility was a key factor in the investment evaluation.
The total market value of stablecoins has reached a record high, surpassing $200 billion, growing 13% in the past month. Some of the funds have flowed into DeFi Lending Protocols, resulting in a new all-time high for total value locked (TVL) at $54 billion, surpassing the previous high of $52 billion during the last bull run.
DefiLlama reports that investments in Ethereum Liquid Staking have seen a nearly 6,000% increase in 2024, with TVL reaching $17.26 billion.
Bitcoin (BTC) has reached its target level of $106,000, prompting a revision of the next resistance level at $118,000. The RSI index still shows buying momentum that could support a continued uptrend. However, caution is advised regarding potential sell-offs from long-term holders who acquired Bitcoin at lower prices. The support level is at $92,000.
Ethereum (ETH) could potentially test its previous all-time high of $4,900 if Bitcoin's price starts to move sideways. Therefore, consider this a buying opportunity, especially if the price does not fall below $3,500. The overall trend has turned bullish—supported by continuous inflows through Spot Ethereum ETFs—driving the price higher
Aave (AAVE) generated 39.46% returns over the past week. The overall trend shows a bullish outlook, with the resistance target at $420. The recommended strategy is to buy on price dips. The first support level is at $300, and if the price stays above this level, this could be considered a buying opportunity.
Chainlink (LINK) posted 23.76% returns over the past week. The overall trend is shifting towards a bullish outlook, with the resistance target at $33. Consider buying at the support level of $27. However, if the price falls below this level, it could lose its upward momentum.
Although Microsoft shareholders did not approve investing in Bitcoin (BTC), the market had not been anticipating it either. Therefore, the price pullback has been limited. Additionally, Donald Trump's announcement that the U.S. would purchase Bitcoin to be used as a strategic reserve immediately after taking office caused Bitcoin's price to surge and reach new all-time highs.
The Bitcoin Dominance Index has not yet reached a new high, but the Total3 Index has not made a new low either. This suggests that altcoins are likely to continue their price action. The large market liquidations from last week may still make retail investors hesitant to re-enter the market. Therefore, it’s important to select altcoins that are expected to outperform the market.
The Total Value Locked (TVL) in DeFi has reached a new high, and it is expected that coins in this category will continue to outperform the market in the future, including both older DeFi coins and newer ones, as well as coins in the Liquid Staking and ReStaking sectors, which have mostly shown strong returns.
After this week, market trading volume may decrease as institutional investors slow down their trading activities, potentially causing Bitcoin’s price to stagnate.
The recommended investment strategy should be to gradually accumulate Ethereum (ETH) while waiting for funds to shift from Bitcoin to Ethereum, as Bitcoin’s price movement becomes more limited. Trade for short-term profits in DeFi coins and accumulate Layer 1 blockchain coins, as their overall trend look to be turning bullish.
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