- December 22, 2024
- Category: Weekly Crypto Digest
Crypto evolution moves too fast, and market-shaping events happen almost every week. This week was no different. Our newest weekly crypto digest breaks down the most important crypto stories, including the new all-time high for Bitcoin, our 15 predictions for 2025, new SEC ETF approvals, lowered interest rate in the US, and more crypto news.
Bitcoin Peaks at $108,239 Before Correcting to $92,281.82
Bitcoin reached an all-time high of $108,239 this past week, driven by increased institutional interest, ETF adoption momentum, and positive macroeconomic signals.
However, the surge was short-lived as market corrections pulled the price down to $92,281.82 following the Federal Reserve’s rate adjustment. Bitcoin has since stabilized and is traded at around $96,000, reflecting resilience amidst broader market turbulence.
Yellow Capital Released 15 Crypto Predictions for 2025
On Friday, 20th of December, 2024, Yellow Capital, a prominent crypto market making and investment firm, released a list of 15 predictions for the crypto market 2025. Among them, Bitcoin surpasses the $200’00 mark, and ETH will break through $6’000. Read the full list here.
SEC Approves First Hybrid Bitcoin and Ethereum ETFs
The US Securities and Exchange Commission (SEC) approved the first hybrid ETFs combining Bitcoin and Ethereum. This new financial product enables investors to gain exposure to the two largest cryptocurrencies within a single regulated investment vehicle.
The approval marks a significant step in bridging traditional finance with the digital asset world, offering institutional and retail investors a simplified way to diversify their crypto holdings. It also indicates the regulator’s growing acceptance of crypto assets in mainstream finance, setting the stage for further innovation in crypto-based financial products.
Bitwise Launches Solana ETP with Staking in Europe
Bitwise Asset Management introduced a Solana Exchange-Traded Product (ETP) in Europe, a move aimed at institutional investors seeking exposure to Solana. What sets this ETP apart is its built-in staking feature, which allows investors to earn passive income from their Solana holdings.
This product aligns with the growing interest in proof-of-stake (PoS) networks and institutional adoption of alternative Layer-1 blockchains. The move strengthens Solana’s position as a preferred choice for scalable and efficient blockchain applications, especially in decentralized finance (DeFi) and non-fungible tokens (NFTs).
Federal Reserve Lowers Interest Rate by 0.25%
The US Federal Reserve announced a 0.25% reduction in interest rates, signaling a potential shift toward monetary easing after a prolonged period of tightening.
This rate cut has implications for both traditional and cryptocurrency markets. Historically, lower interest rates have driven increased liquidity in risk-on assets, including cryptocurrencies like Bitcoin and Ethereum. Market participants are now speculating about how this change might influence investor behavior and whether it could drive a fresh wave of institutional investments into digital assets.
Altcoin Market Declines While Total Crypto Market Cap Stabilizes at $3.3 Trillion
The broader altcoin market faced losses amidst recent market corrections. Ethereum (ETH) dropped by 12.5%, Dogecoin (DOGE) fell by 19%, and Cardano (ADA) saw a 15% decline. Despite these declines, the total global crypto market cap stabilized at $3.3 trillion, showcasing the sector’s overall resilience. Bitcoin dominance remained strong at 55%, reinforcing its leadership position during periods of volatility.
Bitcoin Mining Difficulty Reaches Record High
The Bitcoin mining difficulty increased by 4.43%, reaching an all-time high of 108.52 T. This surge indicates heightened competition among miners, with more computational power being added to the network. A rise in mining difficulty often reflects growing confidence in Bitcoin’s long-term profitability and increased investment in mining infrastructure.