DWF Labs has unveiled a comprehensive report capturing Bitcoin’s dramatic rise ($BTC) as it approaches the $100K mark. A mix of technical indicators and geopolitical events has fueled this rise. The report underscores the impact of Donald Trump’s 2024 presidential victory. The victory provoked fresh optimism in the crypto market and triggered unity across major digital assets. Moreover, DWF Labs reveals different crypto trends, DeFi activity, and growing demand for stablecoins.
Bitcoin’s Bullish Trends and DWF Labs Insights
The analysis highlights Bitcoin’s upward trajectory through exponential moving averages (EMAs). It showcases consistent bullish alignment across short-term, medium, and long-term trends since March. The EMA 13 and 25 metrics particularly indicated strong momentum heading into November, while the EMA 50 served as crucial support during pullbacks. This trend suggests a favorable market structure as $BTC is closer to a milestone speculators have anticipated since 2021.
Additionally, the report examines the $BTC spot basis between Binance and Coinbase. A recent Coinbase premium reflects increased institutional participation. It is often linked to price rallies, contrasting with Binance premiums that signal retail-driven activity.
The quarterly data also reveal a mixed premium environment which highlights periods of retracement and renewed growth throughout 2024. DWF Labs warns of potential caution points as Bitcoin eyes the elusive six-figure valuation. The lab advises traders to monitor EMA compressions and divergence to navigate the evolving cycle.
Stablecoin and DeFi Growth Trends
DWF Labs’ report also highlights the robust growth of stablecoins and decentralized finance (DeFi) in 2024. It underscores the sector’s maturation amid evolving market dynamics. According to the report, the total value locked (TVL) in DeFi rose by 44%. The volume of daily active users and transactions surged by 63% and 86% between March and November.
The report attributes this growth to a favorable regulatory outlook following Trump’s election victory. The leader’s victory has signaled potential deregulatory policies. This sentiment was further bolstered by the launch of Trump’s stablecoin initiative, World Liberty Finance. Trump’s move has driven broader adoption and liquidity in the crypto space.
DWF Labs also noted the surprising outperformance of meme tokens. It is attributed to retail investors’ preference for attention-based assets. Meanwhile, institutional interest in DeFi and Layer 1 projects continues to rise. It is fueled by integrations with real-world asset (RWA) infrastructure.
The report concludes that the crypto market is entering a phase of institutionalization while retaining strong retail participation. Metrics such as TVL and stablecoin growth are expected to play a crucial role in shaping the sector’s future. Investors are encouraged to monitor these trends for effective risk management and market positioning.
