- January 5, 2025
- Category: Crypto
As the year closed and a new one began, the cryptocurrency world remained as dynamic as ever, with significant events shaping market trends, regulatory directions, and institutional activity. From Tether’s record-breaking USDT burn to Ethereum ETFs hitting new investment milestones, the week highlighted key themes around institutional adoption, regulatory actions, and market resilience.
In this article, we’ll break down the Top 5 Crypto News Highlights from the past week, providing context, analysis, and insights into how these events could impact the cryptocurrency ecosystem moving forward.
Tether Burns 2 Billion USDT, Reducing Supply
In a significant move to manage market liquidity, Tether (USDT) completed its largest-ever token burn, removing 2 billion USDT from circulation. This burn was executed to prevent potential oversupply and maintain the stablecoin’s peg to the US dollar during volatile market conditions.
Stablecoins like USDT remain a crucial bridge between traditional finance and the crypto market, serving as a backbone for liquidity and trading across exchanges. Tether’s transparency in managing reserves and strategic token supply adjustments continues to play a critical role in maintaining market stability.
Spot Ether ETFs See Record $2 Billion Inflows in December
Spot Ethereum ETFs recorded an impressive $2 billion in inflows during December 2024, setting a new milestone for institutional adoption of Ethereum. This record highlights the growing confidence among institutional investors in Ethereum’s long-term value proposition, driven by its pivotal role in smart contracts, DeFi, and Layer-2 scaling solutions.
The influx of capital into these ETFs signals increasing regulatory acceptance of Ethereum-focused financial products, which could drive sustained growth in institutional participation throughout 2025.
Montenegro Extradites Do Kwon to the U.S.
In a landmark legal development, Do Kwon, founder of Terraform Labs, was officially extradited from Montenegro to the United States. He faces multiple charges related to the collapse of TerraUSD and Luna, which resulted in an estimated $40 billion loss for investors worldwide.
This extradition marks a crucial step in regulatory efforts to ensure accountability in the cryptocurrency space. Legal experts anticipate a highly publicized trial that could set significant precedents for crypto regulation and corporate accountability.
MicroStrategy and Coinbase Stocks Surge with Bitcoin Rally
As Bitcoin’s price reached $96,500 at the start of 2025, MicroStrategy (MSTR) and Coinbase (COIN) saw their stock prices surge by nearly 4%. MicroStrategy remains the largest corporate holder of Bitcoin, while Coinbase serves as one of the most trusted platforms for institutional crypto trading.
This stock rally underscores the growing connection between traditional finance and cryptocurrency markets. The performance of these companies is now closely intertwined with Bitcoin’s market movements, highlighting the increasing institutional reliance on digital assets as part of long-term strategies.
Global Crypto Market Cap Closes 2024 Above $3.3 Trillion
The global cryptocurrency market cap closed the year at over $3.3 trillion, with Bitcoin holding a dominance rate of 55%. This milestone demonstrates the market’s resilience despite persistent macroeconomic uncertainties, regulatory challenges, and periodic volatility.
Key contributors to this growth include the launch of regulated financial products like spot Bitcoin and Ethereum ETFs, increased institutional adoption, and ongoing advancements in blockchain scalability and infrastructure. Analysts suggest that this solid foundation positions the crypto industry for further growth in 2025.