BTC exceeded the 100,000 mark, the copycat sector of the crypto market rose in conjunction, and the overall market sentiment was high.

Crypto market summary

1. BTC broke through the $100,000 mark on December 5 , rising as high as $103,900, and then fluctuating downwards. However, there is a high probability that it will not stay in this range for too long, and will continue to break upward;

2. The FMG Index shows that the DePIN sector is once again gaining popularity, and within this year , DePIN projects that are strongly related to AI have increased by 100%-700%;

3. The further decline in the number of initial jobless claims in the United States and the improvement in other indexes all show that the U.S. economy is facing a good trend, and inflationary pressure has further weakened, which is likely to be a positive reaction to the interest rate cut;

4. Paul Atkins was appointed as the new SEC Chairman, which will benefit sectors such as DeFi, RWA, DePIN & AI, and Meme.

Market Overview

1.1 FutureMoney Group DePIN Index

FutureMoney Group DePIN Index is a DePIN high-quality portfolio token index constructed by FutureMoney, which selects the 24 most representative DePIN projects. Compared with the last report, the Nav value continued to rise, rising from 9.97 to 15.23. Spot Price also continued to rise, rising to $67.85. This was because large-market capitalization and high-price projects represented by TAO in the Index began to rise across the board. Especially for tokens such as Render and LPT, we can clearly see that after two months of shock, they began to make up for the increase on a large scale. This is not only a symptom of the arrival of the altcoin season, but also a signal of the rotation of the DePIN sector.

1.2 Encrypted market data

In the past 11 months, we can see that the cryptocurrency market valueThe overall trend is upward, rising from the previous 2.45 trillion to 3.69 trillion. In terms of market share, BTC continued to rise after a brief decline in November, and the current dominance rate is over 55%. This is due to the fact that other ecological tokens such as ETH began to make up for the increase during the same period, while BTC still fluctuated below 100,000 US dollars until December On March 5, it exceeded US$100,000, and the BTC dominance rate began to increase.

Observing from the changing trend of Coinglass contract positions, in the past November, the open positions of BTC contracts on the entire network have increased to a certain extent, from the previous high of 58.5 billion US dollars to the current 65 billion US dollars, of which 24 hours of long and short It can be seen that in November, most users were bullish on BTC, but after breaking through $100,000, the sentiment turned bearish.

The entire BTC trend is still in the Fomo stage. In the past 15 days, BTC spot prices The net inflow is about US$4 billion, which fully shows that OTC funds are still optimistic about BTC, and the highest point of BTC’s current bull market has not yet arrived.

1.3 Judgment of the market based on CPI and other data and market reaction

1. Macro level: In terms of unemployment rate, the United States updated new data on November 23. The number of initial jobless claims fell from 221,000 on November 9. Lowered to 217,000. The market generally believes that under the economic stimulus and employment promotion plan advocated by Trump, the unemployment rate may be further reduced in the future. CPI data in November 2024 shows that the annualized CPI growth rate in the United States was 3.5%, a slight decrease from 3.6% last month, indicating that inflationary pressure has eased. The annual core CPI growth rate in November 2024 was 4.1%, down from 4.3% last month. This further confirms the slowdown in US inflation trends. The cryptocurrency and digital asset markets may also receive more positive stimulation with Trump's support, promoting further development in related fields.

2. Cryptocurrency: BTC broke through the $100,000 mark in one fell swoop on December 5, completing a new high test. This also means that BTC has officially entered the 6-digit price range. However, the current bearish sentiment in the market is relatively high, and the possibility of falling back to $90,000 cannot be ruled out.

3. Sectors worthy of deployment: Paul Atkins becoming the new chairman of the SEC will be beneficial to the popularity of the sector. Due to Atkins' background and views on cryptocurrency, it is likely that it will promote DeFi involving crypto finance, RWA that couples real assets and crypto assets, and DePIN and AI sectors that are more broadly implemented in real-life scenarios. In addition, due to the clear entry of large funds outside the past two bull markets, this bull market may be the first time in the history of cryptography. Users embrace Meme on a large scale, and many people realize that they have missed out from the perspective of life-changing benefits. Best opportunities for BTC and ETH, so risk appetite can only increase significantly. This is also the reason why this round of Meme will explode, and Meme deserves special attention.

2. Hot market news

2.1 Bitcoin will not stay near $100,000 Too long, and will seek further gains

On December 5, Bitcoin exceeded $100,000 for the first time, but analysts said it will not stay at this price for too long for a long time, as a break above the psychological price barrier is expected to attract more attention and drive prices higher. Derive founder and cryptocurrency analyst Nick Forster said Bitcoin won’t see much consolidation near $100,000. After hitting an all-time high of $73,679 in March, Bitcoin has fluctuated between $53,000 and $72,000 over the next seven months.

2.2 Trump appoints Paul Atkins as SEC Chairman

About the selection of the new SEC Chairman Trump finally confirmed that Paul Atkins has been nominated and is waiting for a response from the other party. Big names including Coinbase CEO have expressed support and believe that Atkins is the best candidate. The token RSR of the Reserve Protocol, a stablecoin protocol closely related to him, has increased by more than 110% in 7 days.

2.3 A sudden coup in South Korea caused the domestic cryptocurrency trading volume in South Korea to exceed 34 billion US dollars

The situation in South Korea is in great turmoil. Another president is about to step down in an ugly manner. The incident happened suddenly and caused panic among the Korean public. In the past 24 hours, the trading volume of South Korea’s local spot cryptocurrency exchanges exceeded 34 billion.The U.S. dollar hit an all-time high. And it further boosted the price of TRX tokens, because the trading restrictions of South Korea's largest exchange Upbit may prompt traders to find alternative solutions for asset transfers, thereby increasing the trading volume of TRX, with TRX rising by more than 66% in 24 hours.

3. Regulatory environment

More and more lawmakers in the U.S. Congress are beginning to call for restrictions SEC’s regulatory powers in these areas. Lawmakers raised criticism of the SEC’s regulatory overreach in a hearing featuring crypto industry leaders and technology experts that highlighted concerns about a lack of transparency and adaptability in SEC regulations. Attorneys general of 18 states in the United States have launched lawsuits, accusing the SEC of overstepping its authority to regulate and "persecution" the encryption industry; in addition, the U.S. court ruled that the SEC's sanctions against Tornado Cash were ultra vires.

The regulatory differences between the SEC and the Commodity Futures Trading Commission (CFTC) are huge. In the cryptocurrency and Web3 space, the SEC prefers to treat most crypto assets as securities, while the CFTC advocates treating these assets as commodities. With the rapid development of Web3, there are increasing calls for the transfer of regulatory power from the SEC to the CFTC, especially when it comes to DEX and Dapp. The battle for regulatory power has led to further scrutiny and challenges to the SEC’s leadership and its regulatory strategies.

The data in this article comes from: Coinglass, Rootdata, Coinmarketmap, X