Bitcoin Yields 160% Return This Year, Surpassing Other Assets -

Bitcoin has achieved a 160% return this year, outperforming all traditional assets based on calculations using Risk Adjusted Return. Bitcoin also has the second-best Sharpe Ratio, indicating a high return compared to risk, next to Nvidia stocks.

Bloomberg ETF analysts predict that the U.S. SEC will approve a Spot Bitcoin ETF in January 2024. A key factor is Blackrock’s agreement to allow fund redemptions in cash instead of non-cash payments like BTC.

Hong Kong’s financial regulatory authority announced preparations to accept applications for establishing a Bitcoin Spot ETF soon, following the existing Crypto Futures ETF, as part of a plan to promote activities related to digital assets.

The mining difficulty, or Dificulty, of the Bitcoin chain has increased by 6.98%, setting a new record high, indicating a global increase in Bitcoin mining in preparation for next year’s Bitcoin Halving.

Argentina’s Minister of Foreign Affairs and International Trade announced the recognition of Bitcoin as a valid currency for contracts, in line with the policies of the new President Javier Milei, who supports Bitcoin to address centralized financial issues.

The U.S. SEC has postponed the decision to approve or disapprove a Spot Ethereum ETF, including applications from Hashdex Nasdaq Ethereum ETF, Grayscale Ethereum Futures ETF, and others like ARK Invest, until May 2024.

Kaiko revealed that transaction values on major DEX platforms like Uniswap, Curve, and Pancakeswap surged in November, reaching $29 billion, recovering from multi-year lows in September but still below the all-time high of over $124 billion in May 2021.

Grayscale’s latest survey found that 40% of American investors expect digital assets to be part of their investment portfolio in the future, seeing Bitcoin as a hedge against inflation. Particularly, younger investors are most likely to increase digital assets in their portfolios.

Weekly Technical Analysis: 26 December 2023 – 1 January 2024

Bitcoin (BTC)

BTC moved sideways in the past week. Investors are anticipating the outcome of the Bitcoin ETF approval, which is expected to be positive. It’s predicted to continue moving sideways, awaiting the decision next year. Key support is observed at $40,200 and resistance at the previous high of $46,000. If it breaks through, it could reach $48,000.

Support: 1,400,000 THB Resistance: 1,580,000 THB

Ethereum (ETH)

ETH has been rising gradually. The growth of other chains is putting pressure on ETH’s price, resulting in a relative underperformance, but the trend could still follow BTC’s upward movement. Key support is at the previous low of $2,140, while resistance is at the previous high of $2,400.

Support: 75,000 THB Resistance: 81,000 THB

Radium (RAY)

RAY increased by 90.94% in the past week. The rapid price rise necessitates increased caution in investing.

Support: 45 THB Resistance: 70 THB

Near Protocol (NEAR)

NEAR increased by 69.88% over the past week. With a significant price increase, the strategy would be to buy on dips. The first support level is at 112 THB, where investment should be delayed if it breaks through, but if it holds, aim for short-term profit at the previous high of 144 THB

Support: 112 THB Resistance: 144 THB

Trading and Investment Considerations For The Week

The announcement of lower-than-expected U.S. economic forecasts for the third quarter has weakened the dollar, hitting new lows, which positively affects Bitcoin. This is due to the high likelihood that the U.S. Federal Reserve might reduce interest rates sooner to stimulate the economy.

This week, there are no significant economic figures to be announced. Trading volume may decrease due to the holiday season until the beginning of the new year when it is expected to pick up again.

It is anticipated that the Bitcoin Spot ETF will be approved in early January 2024 rather than at the end of 2023. This expectation keeps the market speculative until the actual approval of the ETF, which may lead to a period of speculation followed by a “Sell On Fact” event and a subsequent market correction.

Coins in the Blockchain Layer1 and Layer2 categories continue to attract speculative interest. The market is expected to keep focusing on these coins, potentially shifting towards coins in the DeFi group. It’s advisable to gradually accumulate coins in these categories that haven’t yet experienced speculative interest. For coins that have already been subject to speculation, the focus should be on short-term profit trading only.

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