Bitcoin BREAKS $100k
Bitcoin reached a milestone price of $100,000 on December 5, driven by surging institutional interest and optimism surrounding pro-crypto policies following Trump’s election victory. Bitcoin's dominance, however, dropped to 55.6% as investors rotated funds into altcoins, signalling the onset of an altcoin season. This diversification reflects growing confidence in the broader crypto market, which has added $1 trillion in value since Bitcoin’s rally began.
Total Crypto Liquidations
The milestone was short-lived, with Bitcoin experiencing a sharp 6.3% drop to $92,000 in minutes before recovering to $97,600. Liquidation events totaled over $1.07 billion on December 5, mostly from long positions, impacting over 208,000 traders. These liquidations intensified on December 10, with $1.76 billion wiped out in a single day. While dramatic, such corrections are historically healthy for the market, mirroring past cycles where steep drops preceded higher rallies, resetting leverage and paving the way for sustainable growth.
Weekly Price Update
UpTrade Alpha - What You Missed Last Week
Last week was a whirlwind in the crypto market, and UpTrade Alpha members had front-row access to all the key action and insights. Here’s what you missed:
- Live Insights on Bitcoin’s Historic $100K Breakthrough: UpTrade Alpha provided real-time analysis of BTC’s surge past $100K, including the market dynamics driving the move and live updates on the sharp dips and recoveries that followed.
- Token Reports with Breakout Performances: Exclusive insights into the top-performing tokens on our radar, including both technical and fundamental analysis.
- Market-Wide Alerts: Coverage of $1.76 billion in market liquidations, breaking down how these shakeouts could set the stage for higher rallies, with comparisons to past cycles for context.
- Real-Time Video Updates: Live updates on market shifts, from altcoin season rotations to sudden Bitcoin pullbacks, ensuring members stayed ahead of the trends.
- Exclusive Research and Analyst Picks: From our high speculation video yesterday, our two coins have risen 18% and 96% respectively. You won't find these insights elsewhere.
If you weren’t tuned in to UpTrade Alpha, you missed out on in-depth research, live updates, and actionable insights that kept our members ahead of the market. Don’t miss another week - this is your chance to get premium research, live analysis, and early updates on every major market move.
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Microsoft Shareholders Reject Bitcoin Treasury Proposal
Microsoft shareholders voted against a proposal to allocate 1% of the company’s $78.4 billion in cash reserves to Bitcoin, a move suggested by the National Center for Public Policy Research to hedge against inflation and diversify the company’s holdings. The board recommended rejecting the idea, citing Bitcoin’s volatility and Microsoft’s preference for stable and predictable investments. This reflects the company’s conservative approach, where cash reserves are seen as a tool for strategic investments rather than speculative assets like Bitcoin.
Despite arguments from Bitcoin proponent Michael Saylor, executive chairman of MicroStrategy, shareholders were not swayed. Saylor highlighted how his company’s stock price surged after adopting a Bitcoin treasury strategy, but his example wasn’t enough to overcome concerns about Bitcoin’s price swings and regulatory uncertainties. Microsoft’s stock remained steady at $446 following the announcement, indicating investors are not phased by the company’s cautious stance. Meanwhile, Bitcoin prices dipped 4%, as the market reacted to the disappointing reality that BTC still lacks corporate endorsement from major players.
The decision showcases a broader divide in corporate views on Bitcoin. While some companies like MicroStrategy and Tesla have embraced Bitcoin as a treasury asset, more conservative firms like Microsoft prioritise stability. This approach minimises risk but also sidesteps potential long-term gains from Bitcoin’s growth. For Bitcoin to gain broader adoption in corporate.
SEC To Reject Solana ETF Applications
The SEC is reportedly set to reject applications for spot Solana exchange-traded funds (ETFs), citing the absence of regulated futures markets and concerns about market manipulation. Fox Business journalist Eleanor Terrett revealed that at least two Solana ETF applicants have been informed of the impending denial. This decision reflects the SEC's cautious stance under the Biden administration, which has generally resisted approving new crypto ETFs outside of Bitcoin.
The news comes after a surge in crypto ETF applications from major firms like Grayscale, VanEck, and Bitwise, aiming to expand digital asset offerings. While the SEC recently approved multiple spot Bitcoin ETFs, its reluctance to greenlight products for other cryptocurrencies, like Solana, which showcases the barriers these assets face in achieving broader institutional acceptance.
With the incoming Trump administration, shifts in regulatory leadership could pave the way for a more favourable environment for crypto ETFs, including Solana. However, for now, the SEC’s decision stalls momentum for Solana and its speculation around an upcoming ETF.
Google's Willow Chip - Implications For Cryptocurrency
Google's Quantum AI team has introduced the Willow chip, a quantum processor capable of solving problems in under five minutes that would take classical supercomputers 10 septillion years - a duration surpassing the universe's age. This leap is attributed to Willow's exponential error correction, a significant advancement in quantum error correction pursued for nearly 30 years.
Real-World Potential and Progress
The Willow chip is positioned to transform areas like pharmaceutical research, clean energy solutions, and advanced material design. It marks Google’s second step out of six in its quantum computing roadmap, showing steady movement toward unlocking the full potential of quantum technology.
What This Means for Bitcoin and Crypto
Despite the buzz, Willow’s 105 qubits are far from the roughly 13 million needed to crack Bitcoin’s cryptography. This gives digital assets like Bitcoin a buffer for now, but it’s a wake-up call for the industry. Discussions around post-quantum cryptography are intensifying, with Ethereum co-founder Vitalik Buterin suggesting potential hard forks to prepare for the quantum era.
Staying Ahead in Security
This milestone underscores a pressing need for crypto networks to adopt quantum-resistant encryption sooner rather than later. While quantum computing is not yet an existential threat to blockchain security, the pace of innovation means the industry can’t afford to wait until it is.
Ethereums ETF's surge - Alt Season?
Ethereum is starting to heat up as it surged above $4,000 this week, its highest level since March. This rally has been fueled by strong demand for Ethereum ETFs, which have achieved a record streak of 13 consecutive positive inflow days. Institutional interest has been a key driver, with monthly inflows into Ethereum ETFs exceeding $1 billion for the first time. The BlackRock Ethereum ETF now holds 837,500 ETH, valued at $3.27 billion, solidifying its dominance in the market.
Additionally, Donald Trump's nomination of Paul Atkins as SEC Chair has heightened expectations, driving the strong inflows into spot Ethereum ETFs over the past week. Proposed policy changes aim to allow ETFs to track the spot price of Proof of Stake coins like Ethereum and earn additional returns through staking. This would mark a significant shift in the regulatory approach to crypto ETFs. While Ethereum ETFs do not yet offer staking rewards, the recent single-day inflow of $428 million underscores growing demand from institutional investors and reflects strong investor confidence.
Ethereum Weekly Time Frame Chart
Ethereum's price action has been consolidating within a long-term wedge formation since its all-time high in 2021. The wedge is defined by a downward sloping resistance line and an ascending support line, creating a structure that has built pressure for nearly three years.
Ethereum successfully broke out of this multi-year downtrend line of resistance this week, marking a significant technical milestone. This breakout follows two prior failed attempts earlier in 2024, suggesting increased bullish momentum this time around.
The price has since retraced to test the previous resistance level at approximately $3,600, which now has the potential to act as a new support. Holding this level is critical to maintaining the bullish momentum. A successful retest would confirm the breakout and set the stage for a potential rally toward Ethereum's all-time high near $4,800 or beyond. However, failure to hold $3,600 and a re-entry into the wedge could signal a bearish reversal in the short term.
Ethereum vs Bitcoin Chart
A critical chart to monitor is the Ethereum/Bitcoin pair, as a shift in favour of Ethereum's strength often signals the onset of a rapid rally, not just for ETH but for the entire altcoin market. We've been covering this extensively on our Patreon, focusing on the chart's potential bottoming pattern within a descending channel that has persisted for two years. Currently, ETH/BTC has rebounded 17% from its recent low, suggesting early signs of recovery. However, the key confirmation will come from a breakout above the channel's upper resistance line. If this breakout occurs, it could ignite a powerful bullish momentum, paving the way for Ethereum and altcoins to rally aggressively.
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