Dispatch #222: $100,000: Bitcoin’s latest trophy

In this patch of your weekly Dispatch:

• Crypto’s wave in APAC
• ETH’s record flows
• Inflation woes (again)

Market cast 

Holding ground at $100,000

Bitcoin soared past the psychological  $100,000 barrier last week, marking an extraordinary first in its history and entering new price territory. While short-term momentum seems to be cooling, with oscillators sitting in the neutral zone, the weekly chart suggests further bullish potential as it closes above this key psychological level.

With Bitcoin now in price discovery mode, there’s little resistance until the $110,000 mark, which aligns with a Fibonacci level. In the meantime, the price has found support around the 50-EMA on the 4-hour chart, signaling that the current trend is still intact. Should the price pull back, the next support levels to watch are in the $97,000–$95,000 range, with the $91,000 level serving as the last line of defense for a deeper retracement.

No matter which way the wind blows in the short term, this monumental achievement is a testament to Bitcoin’s position as a transformative force in the financial world. Bitcoiners have earned this. Onward to the next milestone.

The big idea

Crypto rises in the East

While a certain political figure in the U.S. has sparked waves of excitement, it's the Asia-Pacific region that's truly setting the crypto world alight. With a staggering 22% adoption rate—well above the global average of 7.8%—APAC is fast becoming a dominant force in cryptocurrency, according to CoinDesk. This rapid growth is fueled by factors like expanding internet access, evolving regulations, and a growing belief in crypto’s transformative potential. Half of the region’s adults now hold an increasingly supportive view of digital assets, buoyed by Bitcoin’s strong performance. 

The Philippines and the United Arab Emirates are leading the charge, thanks to progressive regulations and soaring demand. Meanwhile, Japan and Australia, though supportive, are falling behind in adoption. In total, over half of APAC adults believe crypto will play a significant role in global finance. The big idea here? Asia’s time to lead in crypto is now.

Ethereum

A milestone before an ATH

Ethereum’s ETH has just crossed a monumental milestone, surging past $4,000 for the first time since March, sparking major excitement across the crypto world. Ethereum ETFs also recorded their largest-ever daily inflow on December 5, adding over $428 million. This record daily inflow helped Ethereum ETFs with their highest weekly inflow yet – $836.7 million for the last week, an impressive 62% increase compared to the second-highest weekly inflow in mid-November. Analysts attribute this rally to ETF interest and the increasing likelihood of favorable U.S. crypto regulations, fueling investor confidence.

Adoption

Crypto wallets hit 400 million

The number of crypto wallets with positive balances has surged past 400 million, reflecting the ongoing bullish market, according to Chainalysis. This rise signals increasing adoption, with both institutional and retail users flocking to crypto, particularly for dollar-pegged stablecoins. Stablecoins now represent up to 75% of all on-chain transactions, highlighting their growing role not just as fiat on-ramps but also as stores of value, particularly in emerging economies. This trend is further supported by a shift in the digital economy, as traditional financial institutions, via ETFs and other products, enter the space, reinforcing the convergence of crypto and traditional finance.

TradFi trends

A Bitcoin treasury for Amazon?

A group of Amazon shareholders has proposed that the company diversify its treasury holdings by allocating 5% of its assets to Bitcoin. The National Center for Public Policy Research (NCPPR) argues that Bitcoin can protect Amazon’s $88 billion in cash from inflation, which they believe is understated by traditional inflation metrics. 

Bitcoin’s impressive 131% gain over the past year further strengthens the case, outperforming corporate bonds. The proposal suggests that Amazon’s stock, known for its volatility, could maximize shareholder value further in the long run with Bitcoin as the needed tool. It’s understandable, as even Federal Reserve Chairman Jerome Powell recently referred to Bitcoin as a competitor to gold.

Blockchain tech  

A showcase of scalability

Cardano's Hydra Layer-2 protocol recently surpassed 1 million transactions per second (TPS) during the Doom gaming tournament, showcasing its scalability. This marks a significant achievement, far outpacing networks like Solana, which max out at 65,000 TPS. Hydra’s test transactions, though on a simulation rather than the mainnet, highlight its potential for high throughput. With Cardano's ecosystem growing, including a 250% rise in ADA’s value, Hydra’s performance has garnered global attention as a game-changer in blockchain scalability.

Macroeconomic roundup

Inflation on the radar

This week, all eyes are on inflation data, with key reports such as the U.S. Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday expected to influence the Federal Reserve’s next move on interest rates. BlackRock’s Rick Rieder emphasized the importance of these reports in guiding the Fed’s policy adjustments:

"The Fed should be in a position to move forward on the December rate cut, but next week’s CPI report now becomes another significant milestone in the policy-adjustment calculus."

The week’s most interesting data story

First take profit, then (new) ATH?

Bitcoin’s recent surge has led many investors to take profits, with a noticeable increase in selling activity. This profit-taking is typical during such rallies, but it raises the risk of further downward pressure on the price. As more coins are sold for a profit, it creates a situation where the market could face more volatility, especially if the price starts to dip. This indicates that while the rally has been strong, the potential for a pullback is growing as investors capitalize on their gains.

The numbers

Top 5 stats of the week

1.1 million – US spot ETFs now hold more BTC than Satoshi Nakamoto’s stash.

$333 million – El Salvador’s unrealized gains from 6,180 BTC.

$200,000 – Standard Chartered predicts Bitcoin could hit $200,000 by 2025.

1.6 million – The number of uranium ounces tokenized by Uranium.io.

$140 billion – The record market value of memecoins.

Hot topics

What the community is discussing

There is no stopping Saylor’s strategy…

One eye on the levels.

How bad are dips, after all?

Dispatch is a weekly publication by Nexo, designed to help you navigate and take action in the evolving world of digital assets. To share your Dispatch suggestions and comments, email us at [email protected].