Bitcoin Continues It's Rise

Bitcoin surged to a new all-time high of $108,135 before settling around $105,000, marking an 8.5% gain over the past week and 17% over the last month. The rally continues to be fuelled by President-elect Donald Trump's victory and speculation around a potential U.S. strategic Bitcoin reserve. Bitcoin investment products, particularly exchange-traded funds (ETFs), have seen significant momentum, with $1.66 billion in inflows over the past 3 trading days.

Weekly Price Update

VanEck: 2025 Could Be Even Bigger for Crypto (Top 5 Predictions)

Prediction 1: 2025 Bull Run

Leading asset manager VanEck predicts that 2025 will be a monumental year for crypto, with the bull market expected to persist throughout the year. They anticipate a local peak in Q1, likely driven by ongoing institutional interest and macroeconomic shifts, followed by a correction and subsequent rebound in Q4. Notably, VanEck projects Bitcoin to reach an impressive $180,000, Ethereum to surpass $6,000, Solana to climb to $500, and Sui to hit $10.

Prediction 2: US Embraces Bitcoin

The prediction that the U.S. will embrace Bitcoin as part of a strategic reserve signals a dramatic shift in institutional sentiment toward Bitcoin as a long-term store of value. This would position Bitcoin alongside traditional reserve assets like gold, enhancing its legitimacy and reducing its perceived risk. Such a move could create substantial upward price pressure as the U.S. government, or individual states, begin accumulating Bitcoin reserves.

Total BTC Treasuries by Category

Prediction 3: Stablecoin Surge

Vaneck forecasts the daily settlement volumes for stablecoins to skyrocket to $300 billion, driven by increasing adoption from global giants like Apple, Google, Visa, and Mastercard. Stablecoins are on track to become a core part of global commerce, offering seamless cross-border payments, reduced friction, and faster settlement times. This trend could position stablecoins as a bridge between traditional finance and the crypto economy.

Prediction 4: DeFi Expansion

VanEck also foresees a breakout year for decentralised finance (DeFi), projecting DEX trading volumes to exceed $4 trillion and total value locked (TVL) to surpass $200 billion. This growth is expected to be driven by increased institutional engagement, innovation in DeFi protocols, and the rising demand for on-chain liquidity and yield opportunities.

Prediction 5: NFT Resurgence

After a challenging 2023, the NFT market is set for a strong recovery. VanEck predicts NFT trading volumes will reach $30 billion by the end of 2025. Ethereum will remain the dominant player in the space, with its share of trading volumes expected to rise to 85%. This resurgence will likely be driven by new use cases, improved infrastructure, and greater integration with mainstream industries such as gaming, art, and entertainment.

Bitcoin's Momentum Ahead of Fed Rate Cuts

Bitcoin and the broader crypto market are showing strength as the Federal Reserve is expected to cut rates by 25 basis points to 4.25% - 4.50%, with a 93.4% probability according to CME's FedWatch Tool and Polymarket's estimating it even higher at 97%. While we believe this cut may already be priced in, lower interest rates historically boost risk-on assets like Bitcoin by increasing liquidity and reducing borrowing costs, making them more attractive to investors.

In 2021, near-zero interest rates created a perfect environment for Bitcoin’s bull cycle, driven by retail investors with increased disposable income. While rates are not at those levels, they are gradually creating a more favourable macroeconomic backdrop which could reignite similar momentum.

MicroStrategy Continues It's Bitcoin Accumulation

MicroStrategy has expanded its Bitcoin holdings to 439,000 BTC with a recent purchase of 15,350 BTC for $1.5 billion, averaging $100,386 per BTC. With total holdings now valued at $45.6 billion, the company is set to join the Nasdaq 100 on December 23, marking a milestone for Bitcoin adoption.

However, MicroStrategy's $42 billion Bitcoin stash raises concerns about market dynamics. Controlling nearly 2% of Bitcoin's supply, its aggressive accumulation could deter other corporations and governments from entering the market, fearing concentration of financial control.

Additionally, with Bitcoin now a core pillar of MicroStrategy's strategy, some say its Nasdaq 100 eligibility could come into question. Dependence on Bitcoin’s volatile performance may conflict with index requirements for business diversification, while its inclusion could amplify market fluctuations.

Altcoins Final Cool-Off?

The "Total 3" chart, which tracks the total crypto market cap excluding BTC and ETH, recently surpassed its 2021 all-time high (ATH). Historically, such breakouts have been followed by pullbacks, as seen in 2021 when the market retested its 2018 ATH breakout before a major alt-season began. It took 1,141 days to reclaim the 2021 highs after the 2018 peak, and now, in 2024, we find ourselves at a similar milestone. With a minor retracement underway, a confirmed alt-season will likely require a decisive breakout above this level, which has historically signalled significant upward momentum.

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