Over the past week, BTC prices have shown an upward trend. On December 10, BTC prices dipped to $94,256 before stabilizing and rising above $100,000. On the 16th and 17th, it broke through $105,000 and $107,000, reaching a peak of $107,793.07 ATH, with a maximum weekly increase of 14.36%. As of the publication of this article, BTC prices stabilized around $107,000, up about 5.6% compared to last Friday's close. Influenced by BTC, ETH also rose to $4,107.8 on December 16, marking the highest price recorded since December 2021, slightly above the peaks in March and early December of this year. (The above data is sourced from Binance spot trading as of December 17, 16:30).
The market believes that Trump's pro-cryptocurrency appointments and ongoing interest rate cuts will accelerate BTC's upward momentum, with BTC prices potentially reaching $125,000 by the end of 2025.
Market interpretation
The three major U.S. stock indices showed mixed performance, with bullish market sentiment remaining.
As of the market close on December 16, the three major U.S. stock indices showed mixed performance. The Dow fell by more than 110 points, marking an eight-day losing streak, the longest since April of this year; the Nasdaq hit a new high, rising by 1%, and the S&P rose by 0.4%. In individual stocks, Broadcom surged over 20% last Friday, exceeding a $1 trillion market cap, and rose over 11% again; in contrast, Nvidia fell by 1.7%.
Goldman Sachs analysts believe that with the dual impetus of an optimistic economic outlook and expectations of Trump easing regulatory policies, the S&P index may continue its current bull market trend. By 2025, the S&P index is expected to rise by 7% to reach 6,500 points.
MicroStrategy joins the Nasdaq 100, with increased attention on BTC.
On December 14, the Nasdaq 100 index announced the results of its annual constituent adjustments, with MicroStrategy set to join the Nasdaq 100 index on December 23.
Since the beginning of this year, MicroStrategy's stock price has surged more than six times, reaching a market capitalization of nearly $94 billion. With MicroStrategy officially joining the index, it may further drive up its stock price. Moreover, MicroStrategy continues to increase its BTC holdings through bond or stock issuance, further consolidating its position and enhancing BTC's market exposure, attracting more investor attention.
BTC spot ETF, along with ETH spot ETF, has seen inflows hitting a historic high.
Crypto funds continue to be favored by institutional investors, with inflows hitting a historic high. According to CoinShares, over the past four weeks, global cryptocurrency funds have recorded net inflows totaling $3.2 billion. This positive trend has brought the total inflows for the year to date to $44.5 billion, more than four times that of any previous year.
Among them, the BTC ETF listed in the U.S. has performed exceptionally well. Over the past week, the BTC ETF attracted $2.17 billion in net inflows, bringing total inflows to over $5.3 billion since its launch in January this year. At the same time, the ETH ETF also recorded net inflows for seven consecutive weeks, totaling $1 billion, as market optimism for ETH continues to grow, driving sustained capital inflows.
The annual core inflation rate in the U.S. is released, meeting expectations.
On December 11, data from the U.S. Bureau of Labor Statistics showed that the U.S. core CPI inflation year-over-year was 3.3%, rising for the second consecutive month. It increased from 2.6% in October to 2.7% in November, in line with market expectations. The rise is partly due to a low base from last year.
On a monthly basis, the CPI rose by 0.3%, marking the largest increase since April, slightly above October's 0.2%, and in line with expectations. The housing index increased by 0.3%, accounting for nearly 40% of the rise. Core CPI also rose by 0.3%, consistent with October's increase and meeting expectations.
Market hotspots
Trump plans to use the $200 billion foreign exchange stabilization fund from the U.S. Treasury to establish BTC reserves.
On December 17, according to Cryptoslate, Trump plans to establish a strategic Bitcoin reserve (SBR) through an executive order, intending to use the Treasury's Exchange Stabilization Fund (ESF) to purchase BTC. The ESF is typically used to address financial crises, with total assets exceeding $200 billion as of October 2024. If implemented, this plan would position the U.S. at the forefront of the global BTC reserve race.
At the same time, several states in the U.S. have begun to promote BTC reserve legislation, including Pennsylvania and Texas. Additionally, countries such as Brazil, Poland, and Japan are also discussing proposals for establishing national BTC reserves.
Trump's DeFi project WLFI has made a significant purchase of $45 million worth of tokens, demonstrating a pro-crypto stance.
Trump's DeFi project World Liberty Financial (WLFI) made significant purchases of crypto assets in December, spending nearly $45 million, including ETH, cbBTC, LINK, AAVE, ENA, and the latest ONDO.
WLFI was launched in September, claiming to be a DeFi platform for cryptocurrency trading, with former President Trump listed as the 'chief crypto advocate.' Trump's sons Donald Trump Jr., Eric Trump, and Barron Trump serve as 'ambassadors.' Companies associated with the family are entitled to receive 75% of the net income.
Institutional and corporate investment intentions for BTC are increasing, with Metaplanet announcing the issuance of 4.5 billion yen in bonds to purchase Bitcoin.
On December 17, Japanese listed company Metaplanet Inc. announced the issuance of its fourth series of ordinary bonds, totaling 4.5 billion yen (approximately $30 million), with the raised funds to be used to accelerate BTC purchases. The bond has a zero annual interest rate and is expected to mature on June 16, 2025. The bond redemption funds will mainly be paid through the proceeds from previously issued warrants. Additionally, Metaplanet plans to further expand its capital operation capacity by issuing private bonds totaling up to 5 billion yen in the future.
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