Bitcoin set to close the year with a bang

Hola folks!

The year 2024 will go down in crypto history as a pivotal year that began on a strong note with Bitcoin and Ethereum ETF approval in the US and winding down with Bitcoin crossing the coveted $100K mark. 

In the last newsletter of 2024, we bring to you the major crypto updates and price movements from the past week and explain how these movements will set the tone for January 2025. Read on to learn more about how Bitcoin performed in the last 7-days and how the crypto price movement will shape up in the coming weeks. 

Bitcoin’s price movement last week was marked by volatility, dipping to a low of $93,000 before steadying slightly. Despite the broader crypto market dropping by 1.7%, BTC faced a sharper 1.72% decline in the last 24 hours. 

Interestingly, BTC perpetual futures funding rates remained positive, signaling that traders holding long positions still dominate market sentiment. However, on-chain metrics pointed to bearish signals, with US interest cooling off, as evidenced by the negative Coinbase premium gap of $169.18. Meanwhile, South Korea’s ‘Kimchi premium’ narrowed significantly, reflecting tempered regional enthusiasm.

Looking ahead, the crypto market holds promise amid uncertainty. Regulatory shifts, such as the US Treasury’s new IRS reporting rules, have stirred intense debates, with the potential to reshape the industry. 

As Bitcoin closes its yearly candle and the Crypto Fear & Greed Index falls to October lows, traders and investors brace for the next chapter. Let’s welcome the new year with cautious optimism, knowing the market’s dynamism will keep us on our toes. Happy New Year!

Amid the turbulence, Bitcoin miners continued to thrive, surpassing November revenues with $1.33 billion in December earnings, even before the year closes. Conversely, memecoins faced a steep decline, losing $40 billion in market capitalization this month—a sharp 32.38% drop from their early December highs. 

Ethereum showed resilience, with long-term holders growing steadily throughout 2024, suggesting increased investor confidence. Historical patterns hint at a potential ETH rally in the first quarter of 2025, though analysts remain divided on its trajectory.

Weekly price movement: 

• BTC $93,745 ⏬ 1.44%

• ETH $3,415 ⏫ 3.36% 

• DOGE $0.3204  ⏫ 2.52%

• SHIB $0.00002164 ⏫ 0.14%  

(All data here as of 2.20 p.m., 30 December 2024)

Before we conclude, here’s a quick look at some important news from around the crypto world.

• The dominant crypto narrative for 2024 has been institutional adoption. From the US approval of spot Bitcoin (BTC) exchange-traded funds to the rising number of companies pledging to buy the world’s largest crypto for their treasuries, crypto has entered, more than ever before, the mainstream conversation. BTC has risen almost 130% this year, breaking record highs. The ETFs approved in January has seen net inflows of $36 billion and amassed over 1 million BTC. Read more here.

• The long-term Ether holders rose from 59% in January to 75% by the end of 2024. The number of long-term Bitcoin holders steadily declined from roughly 70% to 62% in the same timeframe. Read more here. 

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

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