Crypto Market Analysis: Bitcoin Reaches Mid-Cycle High as Altcoin Interest Surges

The cryptocurrency market has started the week on a downward trend, with bitcoin experiencing a decline after struggling to reach the $100,000 mark over the weekend. This comes amid reports that Amazon shareholders are advocating for investment in the cryptocurrency. The ongoing uncertainty since December 5, coupled with increased retail participation, suggests that the market may be approaching a mid-bull cycle peak. The value days destroyed (VDD) indicator for BTC has risen to 2.0 from 0.5, signaling that older coins are being sold, which is often a sign of profit-taking by long-term holders. However, the VDD is still below the critical 3.8 level that has marked the end of previous bull markets. The MVRV ratio has also increased to 2.7x, supporting the idea of a mid-cycle peak. Meanwhile, MicroStrategy's CEO, Michael Saylor, has faced backlash for suggesting that the US should replace gold with BTC in its reserves. Ether is also under pressure, with larger losses than bitcoin, but retail interest remains strong, with open interest in ETH perpetuals reaching $843 million. The DeFi sector is thriving, with a 28% surge in the DeFi market cap index to $151.9 billion, its highest since early 2022. Altcoins are gaining traction, with increased search interest on Google. In traditional markets, US equity futures have held steady, with China's Politburo announcing more proactive fiscal and loose monetary policies. Token events, conferences, and token talks are also worth watching, including the performance of Ethereum-based Pepe (PEPE), which has reached a record $11 billion market capitalization.