December 26, 2024 Digital Currency Daily:

Market Dynamics

• According to a report by Citigroup analysts, the total market value of cryptocurrencies has grown by more than 90% this year. In 2025, their prices will be influenced by six key factors: macroeconomic conditions, ETF activity, asset allocation, widespread adoption, regulation, and the future market of stablecoins. Among these, the macroeconomic backdrop may continue to support high-risk trading in the first quarter, but uncertainty will increase afterward; there has been strong inflow into cryptocurrency spot ETFs, which is expected to continue in 2025. Since trading began in January, Bitcoin spot ETFs have experienced an inflow of $36.4 billion, and Ethereum spot ETFs have attracted $2.4 billion since their launch in July.

• Salvadoran President Nayib Bukele, who previously bet on Bitcoin, saw a strong rebound in Bitcoin after Trump was elected, briefly surpassing the $100,000 mark on Wednesday evening, but fell below that threshold again on Thursday afternoon, trading slightly above $99,000 as of 3 PM Eastern Time.

Industry Regulation

• With Trump taking office next year and several pro-cryptocurrency candidates he appointed entering the cabinet, regulatory policies may shift from enforcement-based regulation to a more legislative approach. This is expected to lead to a more lenient regulatory environment, potentially promoting broader adoption of cryptocurrencies.

Related Stocks

• According to data from Southern Wealth Network, the leading digital currency stock Yinzhijie has seen a 12.8% drop in its stock price over the past five days, but its stock price has increased by 64.68% in 2024; Chutianlong's stock price has fallen by 15.35% over the last five trading days, with a total market value decline of 941 million, currently valued at 6.128 billion. Additionally, other digital currency-related stocks such as Mengwang Technology, Xiangyou Technology, Huamei Holdings, Nantian Information, and Xinchen Technology have also experienced varying degrees of decline over the past five trading days.

Technological Development and Application

• The "Global Digital Currency Development Report 2024" released on November 22 indicates that the global digital currency industry continues to undergo transformative expansion. The introduction of central bank digital currencies will accelerate the internationalization of sovereign currencies and improve the efficiency of cross-border payments. Meanwhile, with improved regulation and strengthened global cooperation, risk management will improve, leading to a future where private digital currencies coexist alongside central bank digital currencies.