CoinEx Research Team's December 2024 report reveals a pivotal month for the crypto market. Bitcoin broke through the $100,000 mark, primarily driven by optimism following Trump's election as president. The report also explores the Federal Reserve's hawkish stance, stablecoin inflows, and emerging trends like AI Agents and Hyperliquid, setting a bullish tone for 2025.
Milestone achievements of Bitcoin
In December 2024, Bitcoin first broke through the $100,000 mark, achieving a historic milestone. This surge was primarily driven by expectations that Trump, following his election as President of the United States, would implement supportive policies for cryptocurrency. On December 5th, Bitcoin's price soared to a historic high of $108,000 before retreating to $94,000. This consolidation aligns with market expectations for an end-of-year adjustment and suggests that further gains may occur after Trump officially takes office in January 2025. Analysts remain optimistic, predicting that Bitcoin's price will reach between $150,000 and $200,000 in the first quarter of 2025, with the specific trajectory depending on global liquidity and institutional capital inflows.
Impact of global central bank policies
The Federal Reserve adopted a hawkish policy, despite a 25 basis point rate cut, while simultaneously signaling that the rate cuts in 2025 would be reduced, increasing market volatility, with significant adjustments occurring in both traditional and crypto markets. Inflation concerns further heightened uncertainty and raised more questions and expectations regarding Trump's upcoming economic policies.
Meanwhile, the Bank of Japan (BOJ) has chosen to act cautiously, maintaining interest rates at 0.25% amid heightened economic uncertainty. However, the potential for future rate hikes remains a key factor to watch closely, as this could disrupt market liquidity and the flow of funds for arbitrage trading.
AI Agents: Transformative innovation in Web3
The discussion surrounding AI Agents gained momentum in Q4 2024 and further solidified its position in the market in December. These AI Agents transitioned from concept hype to practical functional frameworks, and consumer-facing applications have already been launched. The CoinEx research team detailed their technical architecture and investment potential in their report (AI Agents in the Crypto World: Revolutionary Evolution from Web2 to Web3). This topic is expected to continue dominating the Web3 space in 2025, creating new growth opportunities for the market.
Expansion of the Hyperliquid ecosystem
Hyperliquid became the leader in the on-chain derivatives market, achieving exponential growth in Q4 2024. Its token price surged from $6 to $27, and during its peak, it broke through $35, achieving a 3.5x increase. During this period, the token price even exceeded $35, driving the fully diluted valuation (FDV) to $35 billion, highlighting its strong fundamentals and community support. The ecosystem attracted high-profile projects like Solv Protocol, further enhancing the appeal of its Token Generation Event (TGE). Additionally, its sub-token HFUN also performed impressively, rising 360% in the fourth quarter.
Stablecoins: The pillar of liquidity
Stablecoins continue to maintain a strong liquidity structure, with inflows in December nearing $13 billion. Despite Bitcoin experiencing volatility and the altcoin market undergoing adjustments, new investors entering the market have sustained strong growth in stablecoins. This healthy liquidity structure supports the current bull market and suggests that 2025 may usher in a wave of altcoin seasons.
Outlook for 2025
The cryptocurrency market wrapped up December with strong performance, laying the groundwork for potential in 2025. Investors should continue to pay attention to central bank policies, liquidity changes, and the development of emerging trends such as AI Agents and on-chain derivatives.
About CoinEx
CoinEx was established in 2017 as a global cryptocurrency exchange dedicated to making crypto trading simpler. The platform offers a range of services, including spot trading, leveraged trading, futures, swaps, automated market making (AMM), and financial management services, serving over 10 million users from more than 200 countries and regions.
The CoinEx research department is committed to providing in-depth analysis and insights to help investors navigate the complexities and opportunities in the ever-evolving crypto market.
This article is provided by the official source and does not represent the position or investment advice of this site. Readers should conduct their own prudent assessments.
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