Dispatch #220: Destination moon for Bitcoin?

In this patch of your weekly Dispatch:

• The biggest candle yet
• Solana’s star act
• Ethereum’s unknowns

Market cast 

Bitcoin’s next plausible move?

Bitcoin’s momentum remains robust, spurred by a $5.4 billion buying spree as MicroStrategy added 55,000 BTC to its holdings. Oscillators remain firmly in the overbought zone despite recent liquidity shifts toward altcoins. In November, Bitcoin made history with its largest-ever monthly candle, a 40.8% price surge, while 24-hour trading volumes hit highs of $70–$80 billion, propelling it closer to the long-anticipated $100,000 milestone.. It was all predicted by Nexo Co-Founder Antoni Trenchev. The $100,000 mark is expected to act as significant resistance, but historical trends suggest the rally might not end there. From its last bottom, BTC has already gained 6x, and if past bullish cycles repeat, a move toward $150K–$200K is a question of when not if.

While long-term sentiment stays bullish, short-term corrections could occur, with key support around the $90K–$92K zone. With Bitcoin posting record-breaking gains, traders remain optimistic about its trajectory.

The big idea

Crypto’s mainstream ambitions

If money talks, then crypto is screaming. Digital asset investment products just smashed weekly inflow records with a staggering $3.13 billion, catapulting year-to-date totals to $37 billion. For perspective, that’s more than 100 times what U.S. Gold ETFs managed in their first year. Bitcoin stole the show with $3 billion in inflows, proving once again it’s the star of the digital revolution. Meanwhile, Solana outshone Ethereum last week, pulling in $16 million compared to Ethereum’s modest $2.8 million. The global appetite is uneven, though. While the U.S. added $3.2 billion, Germany, Sweden, and Switzerland cashed out, citing profit-taking opportunities. Elsewhere, bullish inflows came from Australia, Canada, and Hong Kong, showing that crypto fever respects no borders.

Is this just another hype cycle? Hardly. With altcoins joining the inflows, it’s clear crypto is no longer niche, it’s knocking on the door of mainstream finance.  Need on-chain evidence? The stablecoin market has reached a new record with a $190.4 billion market cap. Ethena’s $ENA currently registers the highest growth. 

When future historians write about financial evolution, will 2024 be the year they mark as crypto’s breakout moment? At Nexo, we are doing our part with the launch of Personal USD Accounts, offering seamless, direct USD bank transfers in clients’ names, alongside EUR and GBP options.

Ethereum

Capital rotation or inflation?

Ethereum's rally to $3,500 is hard to ignore, but there’s more to this price spike than meets the eye. Positive funding rates and rising leverage show traders are betting on further gains, while on-chain activity has surged 85% in November, signaling growing market confidence.

But there’s a catch. Ethereum’s inflation rate has hit 0.35% (lower than Bitcoin’s), with over 350,000 ETH added to supply since March. With reduced fee burns and staked Ether at historical highs, there's added pressure on the price, making this surge a potential setup for both breakout and volatility.

Solana

SOL, congrats on the all-time high!

Solana (SOL) has hit a new all-time high above $260, up 386% over the past year. Its market cap has also jumped by 50% to nearly $120 billion today. This surge is fueled by strong DEX activity, with Solana’s monthly trade volume topping $109 billion—nearly double Ethereum's—driven by low fees and the memecoin boom, according to media reports. Speculation around Solana ETFs is also heating up, with Bitwise and VanEck filing plans to launch funds. Analysts predict it could reach $500-$700 by 2025 if ETFs gain approval.

TradFi trends 

Rediscovering Bitcoin-backed loans

Cantor Fitzgerald, a key banking partner of Tether which holds most of Tether’s $134 billion of reserves, mainly in US Treasury bills, has reportedly acquired a 5% stake in the stablecoin issuer for $600 million. The deal could mean Tether will receive more support as Cantor Fitzgerald’s CEO Howard Lutnick was selected as United States President-elect Donald Trump’s secretary of commerce but it will also mean more public scrutiny. Lutnick has publicly emphasized the critical role that a US dollar-backed stablecoin can play for people in high-inflation countries, including Argentina, Turkey, and Venezuela.

Macroeconomic roundup

Sizing the economy

The spotlight is back on inflation and interest rates as markets prepare for a holiday-shortened week. Key events include:

• PCE Inflation Data (Wednesday): Economists expect a modest rise of 0.2% MoM and 2.3% YoY, with core inflation forecasted at 0.3% MoM and 2.8% YoY. A hotter-than-expected print could dim hopes for a December rate cut.
• FOMC Meeting Minutes (Wednesday): Investors will analyze the Fed’s commitment to easing rates amid sticky inflation. Current market odds for a December cut sit at 60%, down from 70% a month ago.

Hot in crypto

SUI next on the main stage?

Sui (SUI) has skyrocketed over 80% in November, trading around $3.40 as it rides a wave of growing adoption and activity. Daily active addresses surged 140%, boosting its market cap to $9.9 billion. Developers praise Sui’s easy-to-use Move programming language and high throughput, making it a favorite for applications like gaming. The ecosystem’s growth is also attracting traditional finance, with Franklin Templeton partnering to explore blockchain innovation on Sui.

The week’s most interesting data story

The bullishness in ETH

Ethereum is riding a bullish wave, with futures open interest hitting a record $20.8 billion for a 12% surge reflecting the growing speculation among traders. Positive funding rates and a record leverage ratio point to strong long-position dominance, signaling optimism for price growth, highlight CryptoQuant analysts. The message is clear: Ethereum isn’t just holding its ground—it’s cementing its status as a cornerstone of the crypto market. With Bitcoin recently posting record highs and open interest figures, could Ethereum be poised to follow suit?

The numbers

Top 5 stats of the week 

$3.4 Trillion – Crypto market cap hits a record high.

0.35% – Ethereum’s inflation rate, with supply at 120.4M ETH.

1,111 Days – Solana’s wait between first and second all-time highs.

$107.49 Billion – Total net assets in U.S. spot Bitcoin ETFs.

170 Volcanoes – President Bukele suggests harnessing them for Bitcoin mining in El Salvador.

Hot topics

What the community is discussing

In the minds of altcoin bulls.

Let’s see if the trend continues!

Beware the leverage.

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].