Crypto Assets Market Weekly Report: The Federal Reserve Policy Expectations and the Digital Asset Investment Boom

Macroeconomic Environment

This week's focus in the financial markets will be on the FOMC meeting held by The Federal Reserve (FED) on Wednesday. While the market generally expects a 25 basis point rate cut in December, the real point of interest is the future policy direction of the FED. The pace of rate cuts is expected to be more cautious next year. Notably, as many as 25 central banks will hold interest rate meetings simultaneously this week, which may trigger market volatility.

Experts point out that since the market has already priced in the Federal Reserve's interest rate cut expectations, the direct impact of this policy adjustment on crypto asset prices may be limited.

At the same time, another U.S. state is set to launch legislation for "strategic Bitcoin reserves," and it is expected that more states will follow this trend in the future. Industry insiders predict that at least 10 states will introduce Bitcoin reserve bills, reflecting the growing recognition of Bitcoin as a strategic asset.

Digital Asset Market

Data shows that digital asset investment products have achieved net inflows for the 10th consecutive week, with a total inflow of 3.2 billion USD last week. So far this year, the total inflow of digital assets has reached 44.5 billion USD. Among them, the total inflow of Bitcoin investment products is 2 billion USD, while Ethereum has received inflows for 7 consecutive weeks, totaling 1 billion USD.

Due to the expectations surrounding the U.S. listed ETFs, some altcoins have also attracted the attention of investors. The inflow of funds for XRP reached $145 million, while Polkadot and Litecoin attracted $3.7 million and $2.2 million respectively. Regionally, the United States, Switzerland, Germany, and Brazil all showed positive trends in capital inflows, reflecting a broad optimism in the market for digital assets.

Bitcoin hits a new all-time high

On December 16, the price of Bitcoin surpassed $106,500, setting a new historical high. At the same time, the ratio of Bitcoin to gold also reached a new all-time high, further solidifying its position as "digital gold." Even at such high price levels, some institutional investors have indicated that they will continue to increase their holdings of Bitcoin.

Although the central bank meeting this week has limited impact on the crypto market, Bitcoin's movement is still primarily driven by market sentiment. If The Federal Reserve (FED) adopts an extremely dovish stance, it may provide further upward momentum for Bitcoin.

NFT Market Rebounds

The NFT market has recently welcomed a long-awaited recovery. Data shows that the total market value of top NFT series across the network has exceeded $10 billion, with a 24-hour increase of 10.2%. Meanwhile, the trading volume of NFT series across the network reached $71,146,166 in the past 24 hours, with a remarkable increase of 87.5%.

Among them, the performance of Pudgy Penguins NFT is particularly outstanding, with its floor price continuously rising and currently approaching $140,000. This is mainly driven by positive news such as the upcoming issuance of the PENGU token and the plan for its parent company Igloo's L2 network Abstract Chain to launch its mainnet in January next year.

Hot Projects

$AGENCY is an AI agent project built on the eliza framework. This AI Agent can be added to Discord and Telegram for token, wallet, and Twitter sentiment analysis. The project plans to donate 10% of the tokens to ai16z dao.

Overall, despite the uncertainty in the macro environment, the digital asset market is showing a positive trend, and investor sentiment remains optimistic. With Bitcoin reaching new highs and the NFT market recovering, the Crypto Assets industry is entering a new round of development opportunities.