BTC Prints Fresh ATH, Six-Figure Journey Begins as Price Hits Uncharted High

• Bitcoin surpassed $100,000, setting a new all-time high
• Ether ETFs recorded a new milestone with a $332.9 million single-day inflow
• Trump names former SEC commissioner Paul Atkins as his pick for the agency's chair

Another week, another ATH, from five digits to six-figure breakthroughs

Crypto assets saw strong gains this week, with the total market cap surpassing $3.5 trillion, driven primarily by altcoins as bitcoin’s dominance slipped to 54%. Among the majors, bitcoin gained 2.9%, while ether surged 5% this week. Bitcoin smashed through the six-digit mark this week, setting a new all-time high just weeks after hitting $90,000 in November. Bitcoin has surged over 1.3x year to date, driving its market capitalization close to the $2 trillion mark. In the US spot ETF market, bitcoin ETFs recorded a cumulative net inflow of $1.9 billion over the past five trading days, while ether ETFs attracted $650 million.

On Friday, ether ETFs set a new daily net inflow record, reaching $332.9 million, with $250.4 million flowing into BlackRock’s ether ETF and $79.1 million into Fidelity’s ether ETF. A recent Bernstein report highlights the growing appeal of integrated staking as a potential game changer for the ETF market. While the Securities and Exchange Commission (SEC) has so far delayed the rollout of this feature for US-based ETFs, the landscape could shift with a pro-crypto administration. Investor sentiment is improving, fueled by the possibility of regulatory progress. At the time of writing, ether staking yields stand at approximately 3.4% annualized (APR) in ETH, according to StakingRewards.com.

South Korea experienced an unprecedented surge in crypto trading, with volumes hitting a record $34 billion in just 24 hours, following President Yoon Suk Yeol's brief declaration and subsequent rescinding of emergency martial law. Upbit, the country’s largest exchange, contributed $27 billion, while other platforms like Bithumb, Coinone, and Korbit made up the rest. This surge nearly doubled the previous daily record of $18 billion, surpassing the volume of the local stock market. The announcement triggered a mass sell-off, causing bitcoin prices to dip to $62k on Upbit, and other cryptocurrencies saw sharp declines amid exchange outages. However, the martial law was overturned within six hours by a unanimous vote from lawmakers, helping prices recover. The political aftermath has led to plans for impeachment proceedings against the president and key ministers, while predictions on decentralized platforms reflect growing uncertainty about Yoon’s future.

Deribit moves to Dubai, Paul Atkins set to lead the SEC

Deribit, the crypto derivatives exchange, has announced the launch of spot and derivatives trading in the UAE, alongside the migration of all activities to its Dubai-based entity, Deribit FZE, which is licensed by the Virtual Assets Regulatory Authority (VARA). Unlike other global trading venues setting up separate entities, Deribit will consolidate all operations into its Dubai entity. Deribit FZE will serve as the exclusive platform for trading across all product offerings, including spot, perpetuals, futures, and options, along with all post-trade activities, all governed by VARA's supervision. Starting January 1, 2025, qualified and institutional investors will be directly onboarded as clients of Deribit FZE, while retail clients will continue to be supported by DRB Panama, now functioning as a broker member of Deribit FZE.

President-elect Donald Trump selected Paul Atkins, Founder and CEO of Patomak Global Partners, to lead the US Securities and Exchange Commission (SEC). Atkins, who previously served as a commissioner at the SEC under President George W. Bush, is also an adviser to the Reserve Protocol and Co-Chairs the Digital Chamber's Token Alliance. Despite initial reluctance, Atkins visited Trump’s Mar-a-Lago resort earlier this week, and Trump later praised him as a "proven leader" who understands the importance of capital markets and innovation, including the role of digital assets in America's economic future.

Atkins is an established figure in the securities world and is unlikely to overhaul the SEC drastically. His firm, Patomak, includes several former SEC and Commodity Futures Trading Commission (CFTC) officials. Atkins will succeed Gary Gensler, whose tenure saw increased enforcement actions against crypto companies. It remains to be seen how Atkins will approach ongoing regulatory actions, particularly those affecting the crypto industry.

Altcoins are posting significant double-digit weekly gains, with no material changes in fundamentals and network usage. YouTube views for crypto influencer content surged to 4.72 million for the week of November 25, reaching a 12-month high, signaling a revival of retail interest in digital assets. Coin Bureau and Crypto Banter led this spike, each exceeding 1 million weekly views, contributing significantly to the overall figure. While current views are still below the all-time high of 9.3 million, there’s potential for further growth in retail engagement. This rise in content consumption aligns with other indicators of increased retail participation, such as Phantom Wallet and Coinbase breaking into the top 100 on app store rankings.

We may be entering, or are already in, the euphoria stage of the market cycle, though it could persist longer, just as denial stages often do.

Macro pulse 

Among TradFi risk assets, Oil futures posted a modest gain of 0.1% and US equities rallied by 1.5% compared to the previous week led by tech names. Fed Chair Powell expressed optimism about the robust state of the US economy and confidence in the current direction of monetary policy. While inflation remains an ongoing concern, he noted steady progress toward bringing it under control. Powell mentioned that the Fed is gradually steering rates toward a neutral level, and with downside risks appearing less severe than expected, sees room for a cautious and measured approach to reaching that balance. Elsewhere, the US Dollar Index rose by 20 bps and the 10-year US treasury yields slipped by 10 bps while the Gold and Silver index rose by 1.1% week on week.

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^{*Note: Weekly (7 calendar day) performance figures are as of 8am SGT on December 5, 2024} 

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