The year 2025 has begun with notable fluctuations in the cryptocurrency market. Bitcoin (BTC) is witnessing neutrality in trading as the price slightly drops below $92,000 due to some investors taking profits. This occurs despite the fact that MicroStrategy has made a significant move by purchasing an additional 2,138 BTC, raising its total holdings to 446,400 BTC. Currently, BTC is just above $92,800.
Traders are hoping that Bitcoin's price will hold steady in January, expected to benefit from upcoming policies under the Trump administration. Analysts from QCP Capital forecast that the market will not experience much volatility in January, with average profit expectations similar to December.
Although the options market is demonstrating an optimistic spirit with an increase in call options, Bitcoin is likely to end December with a 4% decline, marking the worst performance since 2021, as investors withdraw from the market after a year of significant growth.
Pressure from the broader market with signs of a slowdown in the economy, along with significant capital outflows from Bitcoin ETF funds amounting to over $1.5 billion since mid-December, indicates a cautious sentiment among investors.
In today's cryptocurrency market, BlackRock's Bitcoin ETF, iShares Bitcoin Trust (IBIT), led performance among U.S. spot Bitcoin ETFs in 2024, with net inflows exceeding $37 billion, far surpassing Fidelity's Wise Origin Bitcoin Fund (FBTC) with nearly $12 billion.
Overall, Bitcoin spot ETFs in the U.S. have attracted around $144 million in daily net inflows, despite Grayscale's Bitcoin Trust (GBTC) undergoing capital withdrawals of up to $20 billion. After Donald Trump was nominated for president, the capital flows accelerated, leading U.S. Bitcoin spot ETFs to surpass $100 billion in net assets for the first time.
Franklin Templeton predicts that many countries will adopt Bitcoin reserves by 2025, marking a shift from speculation to utility, as Bitcoin gradually solidifies its role as a global digital store of value supported by interest from institutions and nations.
In addition, the notorious hacker known as 'The Blockchain Bandit', who stole 51,000 Ether by exploiting weak private keys, has begun moving the stolen assets after nearly two years of inactivity. The funds have been transferred in batches to a single wallet, marking a significant movement of approximately $172 million in ETH.
