Dispatch #219: Bitcoin: the world’s seventh largest asset

In this patch of your weekly Dispatch:

• BTC’s latest ATH
• Ethereum ETFs catch up
• The Fed pauses cuts

Market cast 

The golden cross and a $100,000 tease

Bitcoin has smashed through $93,367 for a new all-time high, becoming the seventh-largest asset globally. It surpassed traditional stocks like Visa, JPMorgan Chase, Tesla, Meta Platforms, oil giant Saudi Aramco and silver with a market capitalization nearing $1.8 trillion. Its dominance in the crypto market now sits at an impressive 61%. 

But beneath the achievements lie the technicals. Currently consolidating around the $90K mark, Bitcoin is inching closer to the psychological $100,000 milestone, with strong technical momentum.  Oscillators signal optimism and a powerful uptrend above the 70 level, but the market is also approaching the overbought zone, hinting at possible short-term corrections.

Still, a key technical indicator offers a bullish outlook. The golden cross – the 50-day moving average crossing above the 200-day moving average – is a classic signal of sustained upward momentum. Last time this happened, Bitcoin doubled in value. Last week on CNBC, Nexo’s co-founder boldly predicted $100,000 BTC very soon. If history and a golden cross are any indicators, that “very soon” might just live up to its name.

The big idea

Blue skies for crypto?

After Bitcoin’s impressive gains, many wonder if an altcoin season is next. The total crypto market cap surged from $2.8 trillion to over $3 trillion in just one week—could this be a signal?

Bernstein Research is optimistic, advising investors to "buy everything you can" as institutional interest grows and price trends remain bullish. They predict Bitcoin could reach $200,000 as adoption continues.

Sygnum’s annual survey shows 57% of institutions plan to increase digital asset exposure, with Layer-1 blockchains and DeFi as key investment focuses. A favorable U.S. regulatory environment is expected to boost crypto's appeal among asset managers and private investors.

K33 Research highlights the continued strength of the altcoin market, noting the 3 million memecoins and 1 million Ethereum-based tokens launched this year. 

Tl;dr: With Bitcoin nearing $100,000 and a positive political climate, altcoins are poised for growth.

Ethereum

ETH slips below trendline

Ether (ETH) recently lost a key support level against Bitcoin (BTC), breaking below an upward trendline that had marked price lows since 2016. The trendline has historically signaled major recoveries, but its breach, along with the ETH/BTC pair dropping 15% and increasing trading volumes, point to selling pressure. In comparison, Solana (SOL) has been outperforming ETH, with its price surging over 925% against it since December 2022.

Solana

A SOL ATH in sight?

According to the “Q4 2024 Crypto Investment Manager Survey” by MV Global, most venture capital and hedge funds expect Solana (SOL) to reach at least $600 in this bull cycle, with nearly a third of respondents predicting it will exceed that level. About 23% foresee SOL's all-time high being within this range, while others expect the asset to trade between $150 and $300 in the second half of 2025.

The survey, which interviewed 76 leading liquid funds and venture allocators, revealed a strong consensus that Solana will outperform Bitcoin (BTC) and Ethereum (ETH) in this cycle.

TradFi trends 

BlackRock expands to multiple blockchains

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL)  has expanded to operate on the Aptos, Arbitrum, Avalanche, Optimism, and Polygon blockchains, broadening access to tokenized assets. Backed by BNY Mellon, the fund invests in US Treasuries and liquid assets, offering features like on-chain yield and real-time transfers. This multi-chain expansion enhances opportunities for DAOs and digital asset firms.

Goldman Sachs spins out a blockchain platform

Goldman Sachs is spinning off its blockchain-based platform, GS DAP, into a standalone entity within the next 12–18 months to modernize trading and settlement for institutional clients. The platform will facilitate transactions involving traditional assets like bonds and cash, while expanding into private digital markets and exploring tokenization projects. Goldman’s $600M investments in Bitcoin ETFs and blockchain-backed products underscore its strategic commitment to digital assets, as institutional interest continues to soar.

Macroeconomic roundup

The Fed: No rush for rate cuts

Federal Reserve Chair Jerome Powell tempered market optimism on Thursday, stating there is no hurry to lower rates.” Speaking at a Dallas conference, Powell emphasized the Fed's ability to approach rate decisions cautiously due to the current economic strength. His remarks dampened expectations for a December rate cut, with odds dropping from 83% to 62%, according to CME FedWatch. Bitcoin slipped 3.2% to $88,000 following the speech, while traditional markets also dipped, with the Nasdaq closing 0.75% lower.

Hot in crypto

XRP’s three-year high

Ripple (XRP) futures open interest surged to a record $2B in value over the weekend, coinciding with the latest price jump. The rally pushed XRP above $1.20, marking an 87% weekly gain and its highest price in three years. Analysts note that the increase in both open interest and price reflects strong market participation, indicative of bullish momentum.

Traders remain slightly skewed toward short positions, with 51% betting against further gains. However, the sharp rise in open interest suggests new money entering the market, further amplifying the token's upward trajectory.

The week’s most interesting data story

ETH’s path to recovery?

Ethereum spot ETFs have recorded their highest weekly volumes since their August launch, with over $1.63 billion in trading last week—a 44% increase from the prior week. This spike follows a period of stagnation, where volumes averaged just $168 million per day from August to October. The recent surge mirrors the trading pattern seen with Bitcoin ETFs, which experienced a quiet period before a dramatic increase in volumes, followed by a 35% rise in Bitcoin’s price. Following last week's spike, Ethereum saw a 25% price increase, marking its largest weekly gain in six months.

The numbers

Top 5 stats of the week 

• 331,200 – MicroStrategy's Bitcoin holdings.
• $1.67 billion: Last week's inflows to BlackRock's iShares Bitcoin Trust (IBIT).
• 1.07 million – The amount of BTC held at US-traded spot Bitcoin ETFs.
• $700 million – The amount the state of Pennsylvania could invest in Bitcoin.
• $180,000 – VanEck’s Matthew Sigel’s BTC price prediction for the next year.

Hot topics

What the community is discussing

Who doesn’t love Bitcoin exploration?!

Is it all about trading?

How major is that?

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].