Contrary to overall expectations, oil markets have witnessed an uptick in prices over the last week, specifically escalated in the last 2 days. (WTI inched up from $68.623 to $70.18, and Brent climbed from $72.37 to $ $73.46, both at the time of publication). Despite broad concerns about global supply outweighing demand reinforced by President-elect Trump’s grand plan to crash energy costs, and more recently, OPEC’s 5th consecutive reduction in oil demand projections, prices have ticked up lately.
China’s plans to adopt a loose monetary policy to foster economic growth has spurred optimism about demand growth from the world’s second most populous country. US inflation published yesterday may also drive bullish sentiment as the markets have priced in a rate cut by the Fed. The imposition if new sanctions by the European Union against Russian oil has also driven bullish sentiment into the oil markets, albeit temporarily.
To a large extent, the common factor that currently drives oil prices up is conflict escalation and from all indications, the incoming US administration will adopt a mature approach t conflict management that will be decisive, proactive and less costly to society. Despite the current uptick in prices, we foresee a sharp decline once the Trump factor kicks in. As the International Energy Agency, (IEA) Executive Director, Fatih Birol put it “…The world is set to enter a new energy market context in the second half of this decade because underlying market balances for oil and gas are easing. Bar major geopolitical conflicts, we will be entering a period where prices will see significant downward pressures…”
The one week has been a whirlwind of events in crypto.
Firstly, it has now been duly verified that the total crypto currency market capital has surpassed the GDP (Gross Domestic Product) of France and the United Kingdom put together. This is very telling to the fact that crypto currency is gaining grounds non-stop. Where else can crypto go from here?
The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has officially recognized Tether’s USDT stablecoin as an accepted virtual asset (AVA). This approval allows licensed financial service providers within the ADGM to offer services related to USDT, supporting its integration into regulated financial ecosystems.
The recognition applies to USDT issued on various blockchains, including Ethereum, Solana, and Avalanche, aligning with the United Arab Emirates’ broader strategy to position itself as a global leader in digital finance. With a market capitalization exceeding $138 billion, USDT’s designation as an AVA further solidifies its status as the largest stablecoin in the market.
MicroStrategy has recently purchased an additional 21,550 BTC, valued at approximately $2.1 billion at the time of the purchase. This move further solidifies the company’s position as one of the largest publicly known corporate holders of Bitcoin. Over the years, MicroStrategy, under the leadership of CEO Michael Saylor, has made Bitcoin a central part of its treasury strategy, accumulating a significant amount of the cryptocurrency as part of its long-term investment approach.
With this latest purchase, MicroStrategy’s total Bitcoin holdings have exceeded 150,000 BTC, making the company a major player in the Bitcoin market. This strategy reflects the company’s belief in Bitcoin as a store of value and a hedge against inflation, aligning with its broader vision of incorporating digital assets into its corporate financial strategy.
The New York Department of Financial Services (NYDFS) has officially approved Ripple’s RLUSD stablecoin, according to a post by Ripple Labs CEO Brad Garlinghouse on December 10. In his post, Garlinghouse shared that Ripple would “soon” announce exchange listings for the RLUSD stablecoin.
First introduced in April, RLUSD was designed as a product to compete with other popular dollar-pegged stablecoins, such as Tether (USDT) and USD Coin (USDC). The approval from NYDFS marks an important step in Ripple’s expansion into the stablecoin market, potentially offering a new, regulated option for digital dollar transactions.
As with many situations, once momentum shifts, fear, uncertainty, and doubt (FUD) often follow. The initial euphoria surrounding Trump’s election victory is beginning to fade, partly because there is a significant gap between his win and his actual inauguration. This delay can make it difficult to maintain enthusiasm over an extended period.
Humans tend to be emotionally driven, especially in financial decision-making, and those who are emotionally unbalanced often make impulsive mistakes. The market’s current dip in momentum and hype is a reflection of these emotional swings, as well as the upcoming holiday season. Many traders are likely preparing for the Christmas season, which could lead to some liquidations as individuals close out positions to take profits and enjoy time with their loved ones. This pullback in market activity is a typical seasonal trend, as traders shift focus toward personal matters and the holidays.
The cryptocurrency market in the last 3 days experienced its largest liquidation since September 2021, as Bitcoin underwent a sharp 10% flash crash. Within just 12 hours, BTC plunged from $103,647 to $92,092, only to recover swiftly. Despite the rebound, the event triggered a cascading effect, significantly impacting the broader market. Severe losses for altcoins wiped out over $1.7 billion from nearly 584,000 traders within 24 hours.
While sudden crashes in crypto markets are not unusual, this event stood out due to several peculiar characteristics. Interestingly, some cryptocurrencies exhibited unusual behavior during the crash. For example, Ethereum (ETH) showed strong buying pressure after the dip, suggesting potential accumulation by large players. Conversely, XRP experienced a severe 18% sell-off, dropping from $2.40 to $1.96 in less than four hours. Despite its large market cap, XRP’s low liquidity made it particularly vulnerable to sharp fluctuations.
Additionally, unexpected volume spikes were observed in assets such as Cardano (ADA), USDC, and FDUSD, raising concerns about possible market manipulation. Notably, pre-crash activity on Coinbase drew attention, with the timing of aggressive sell-offs sparking speculation about deliberate market moves.
It is crucial to acknowledge that manipulation is a persistent factor in crypto markets—and indeed, in any market. To navigate such volatility, traders should implement robust strategies and carefully plan their moves. Stay informed, remain cautious, and happy trading!
