2024 is coming to a close with many notable fluctuations in the cryptocurrency market. Last December witnessed a drop in Bitcoin (BTC) value below $92,000 despite MicroStrategy just buying an additional 2,138 BTC. Subsequently, the price slightly recovered and reached over $92,800 on Tuesday morning. Traders at QCP Capital predict that BTC prices will stabilize until February, after Donald Trump takes office, with an expected average profit in January similar to December.
The market's optimism is clearly reflected in the trend of choosing call options, as investors bet on the possibility that BTC prices will rise in March. Although BTC has increased by 117% year-on-year, the market still expects to end December with a 4% decline, due to retail investors and long-term holders rushing to sell. The economic downturn in the U.S. also contributes to the market sentiment.
MicroStrategy's latest BTC purchase, although large, did not prevent price declines. Altcoins also faced a similar fate as they confronted downward trends. Additionally, ETF funds recorded large outflows, indicating that investment sentiment is shifting to be more cautious regarding Bitcoin's short-term outlook.
This year, special attention is focused on Do Kwon, co-founder of Terraform Labs, who was recently extradited from Montenegro to the United States after a prolonged legal battle regarding his residence. Montenegro's Prime Minister Milojko Spajić announced on December 31 that Kwon is currently in U.S. custody and will face criminal charges related to the collapse of the Terra ecosystem in 2022, an event that negatively impacted the cryptocurrency market.
Kwon, arrested in Montenegro in 2023 for using fake documents, has spent over a year in legal limbo while courts consider extradition requests from the U.S. and South Korea, where he also faces charges. This extradition was approved by Montenegro's Minister of Justice and reflects the country's commitment to international justice, according to the Prime Minister. In addition to the charges in the U.S. for fraud and market manipulation, Kwon and Terraform Labs have also been found liable for fraud in a civil case by the U.S. Securities and Exchange Commission, with a liability of about $4.5 billion. Kwon's court appearance in the U.S. remains unclear.
Through these events, 2024 ends with lessons and deeper insights into the ups and downs of cryptocurrency development in the context of the global economic and legal landscape.
