Cryptocurrency Market Performance
Currently, the total market capitalization of cryptocurrencies is $3.35 trillion, with BTC accounting for 57.626%, amounting to $1.93 trillion. The market cap of stablecoins is $204.2 billion, with a 7-day increase of 1.05%, of which USDT accounts for 68.87%.
This week, BTC's price has shown range-bound fluctuations, with the current price at $97,738; ETH is also range-bound, currently priced at $3,385.
Among the top 200 projects on CoinMarketCap, most have declined while a few have risen, including: HYPE with a 7-day increase of 42.74%, USUAL with a 7-day increase of 113.43%, and BGB with a 7-day increase of 32.04%.
This week, the net inflow for Bitcoin spot ETFs in the U.S. was $586 million; the net inflow for Ethereum spot ETFs was $153.7 million.
On December 20, the "Fear & Greed Index" was at 74 (lower than last week), with the sentiment being: 3 days of greed and 4 days of extreme greed.
Market Prediction: The continuous issuance of stablecoins and net inflows into ETFs have led to a decrease in positive market sentiment due to the expectation of fewer interest rate cuts by the Federal Reserve in 2025. However, the market is currently in the mid-stage of a bull market, presenting opportunities for buying on dips, with a recent focus on the RWA sector.
Understanding Now
Weekly Major Events Review
On December 16, according to Coinglass data, Bitcoin surged past $105,000 this morning, but the funding rates on mainstream CEX and DEX are both below 0.01%, indicating that the market does not show a clear bullish sentiment or FOMO;
On December 17, according to a report by Fortune, the U.S. Securities and Exchange Commission (SEC) recently issued a Wells Notice to the crypto investment company Unicoin, accusing it of fraud, misconduct, and unregistered securities issuance. Unicoin CEO Alex Konanykhin revealed that the company has sold approximately $3.5 billion worth of tokens, with around 70,000 investors, and its tokens are backed by physical assets such as 8,000 acres of land in the Bahamas. SEC Chairman Gensler will step down in January 2025, and this move is seen as the last wave of regulatory actions against the crypto industry during his tenure. Unicoin must respond by December 24, and the company stated it will choose legal confrontation rather than settlement;
On December 17, 21Shares' XRP Trust has been registered in the U.S. state of Delaware, under the name "21Shares XRP Trust." This entity will be established on June 3, 2024, as a statutory trust, with the registered agent being CSC Delaware Trust Company, located in Wilmington, Delaware;
BlockBeats previously reported that 21Shares had submitted an application to the SEC for the 21Shares Core XRP Trust, planning to launch a spot XRP ETF. This ETF aims to track the price of XRP and plans to list on the Cboe BZX exchange. The registration of this trust may pave the way for the launch of this ETF;
On December 18, according to Cointelegraph, Ripple's stablecoin RLUSD has officially launched;
On December 18, according to official data, Hyperliquid's open contract volume reached $4.28 billion on December 16, setting a new historical high;
On December 19, on-chain data showed that Trump's crypto project World Liberty increased its holdings by over 230,000 ENA;
On December 19, Bloomberg reported that MicroStrategy co-founder and chairman Michael Saylor stated that once the current fundraising plan is exhausted, the company will shift from a leveraged Bitcoin proxy plan to a focus on fixed-income securities to raise funds for purchasing cryptocurrencies;
On December 18, according to official news, Usual has reached a partnership with Ethena Labs and BlackRock's tokenization platform Securitize, where the stablecoin USDtb, soon to be launched by Ethena Labs and Securitize, will become the main collateral asset for Usual's stablecoin USD0. As part of this collaboration, Usual will also launch a sUSDe vault for USD0++ holders, allowing Usual users to earn sUSDe APY and Ethena rewards, along with additional USUAL rewards;
On December 19, data from IntoTheBlock revealed that a significant demand zone close to $100,000 has formed, with over 1.45 million BTC accumulated around an average price of $97,500, making it an important potential support area;
On December 19, the board of directors of U.S. publicly listed company reAlpha Tech Corp. (AIRE) approved a new investment policy, listing Bitcoin, Ethereum, and Solana as the company's primary reserve assets. The company plans to use up to 25% of excess cash for cryptocurrency purchases after ensuring six months of operating expenses, with specific allocations adjusted based on market conditions and actual operational needs;
On December 19, the Federal Reserve concluded its 2024 annual interest rate decision, deciding to lower the benchmark interest rate by 25 basis points to a range of 4.25%-4.50%, marking the third consecutive rate cut, in line with expectations.
In this year's eight decisions, the Federal Reserve has cumulatively cut rates by 100 basis points, including one 50 basis point cut, two 25 basis point cuts, and five instances of maintaining rates;
- On December 20, Coinbase announced that it has suspended wBTC trading. Trading of wBTC on Coinbase Exchange and Coinbase Prime has been suspended, but users can still withdraw funds at any time.
Macroeconomics
On December 18, crypto asset management company Bitwise launched a Solana staking ETP in Europe, with the stock code BSOL, and Solana staking company Marinade will become Bitwise's staking provider.
On December 19, the Bank of Japan maintained its policy interest rate at 0.25%, marking the third consecutive pause in rate hikes;
On December 20, the SEC approved the listing and trading of Hashdex Nasdaq Crypto Index US ETF and Franklin Crypto Index ETF shares on Nasdaq and Cboe BZX exchanges, respectively;
On December 20, Japanese listed company Metaplanet announced it will issue its fifth series of interest-free ordinary bonds totaling 5 billion yen. The funds raised will be used to accelerate the purchase of Bitcoin, with the bond maturity date set for June 16, 2025. The company plans to secure funds for bond repayment through the exercise of the 12th series of warrants.
ETF
According to statistics, from December 16 to December 20, the net inflow for U.S. Bitcoin spot ETFs was $586 million; as of December 20, GBTC (Grayscale) had a total outflow of $21.247 billion, currently holding $20.057 billion, while IBIT (BlackRock) currently holds $53.339 billion. The total market capitalization of U.S. Bitcoin spot ETFs is $112.922 billion.
The net inflow for U.S. Ethereum spot ETFs was $153.7 million.
Envisioning the Future
Event Preview
- CoinDesk will hold Consensus Hong Kong from February 18 to 20, 2025, in Hong Kong.
Project Progress
The Sui lending protocol Scallop has launched a Christmas airdrop event, where users who borrow more than $1,000 or hold more than 1,000 veSCA from December 14 to December 26 can participate in sharing 1 million SCA tokens;
Pump Science released a roadmap update, announcing new partnerships, preparing for mouse experiments, and protocol development on December 24.
Important Events
The European Banking Authority (EBA) new guidelines on the "Travel Rule" applicable to crypto assets will take effect on December 30, 2024;
The EU's "Markets in Crypto-Assets" (MiCA) regulation guiding cryptocurrency exchanges and other companies operating in the EU will take effect starting December 31.
Token Unlocking
Altlayer (ALT) will unlock 195 million tokens on December 25, valued at approximately $23.1 million, accounting for 1.95% of the circulating supply;
Immutable (IMX) will unlock 24.52 million tokens on December 27, valued at approximately $33.04 million, accounting for 1.23% of the circulating supply;
Axelar (AXL) will unlock 13.51 million tokens on December 27, valued at approximately $9.48 million, accounting for 1.14% of the circulating supply;
Open Campus (EDU) will unlock 19.07 million tokens on December 28, valued at approximately $9.34 million, accounting for 1.91% of the circulating supply.
About Us
Hotcoin Research, as the core investment research department of Hotcoin, is dedicated to providing detailed and professional analysis of the cryptocurrency market. Our goal is to offer clear market insights and practical operational guidelines for investors at different levels. Our professional content includes the "Play and Earn Web3" tutorial series, in-depth analysis of cryptocurrency industry trends, detailed analysis of potential projects, and real-time market observations. Whether you are a newcomer exploring the crypto space or a seasoned investor seeking deeper insights, Hotcoin will be your reliable partner in understanding and seizing market opportunities.
Risk Warning
The cryptocurrency market is highly volatile, and investing carries risks. We strongly advise investors to fully understand these risks and invest within a strict risk management framework to ensure the safety of their funds.
Website: https://www.hotcoin.com/
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