The crypto market demonstrates steady growth in December 2024. The total market capitalization exceeded $3.5 trillion, indicating a continued influx of funds from both retail and institutional investors. Key trends:
Bitcoin and ETF prospects
Bitcoin (BTC) has stabilized at around $98,000, demonstrating a growth of more than 40% over the last two months. The main driver has been the launch of spot Bitcoin ETFs, which is expected in early 2024. This instrument could attract significant institutional investments, raising the BTC price to a potential range of $120,000–$150,000 in 2025.
Altcoin season
Altcoins are also showing positive dynamics. XRP rose by 12% in one day, Cardano by 10%, and Ethereum holds at $3,880. Experts expect the start of an active 'altcoin season,' which is traditionally accompanied by a redistribution of funds from Bitcoin to other assets.
Regulatory changes
Hong Kong accelerates the licensing of cryptocurrency exchanges, while India is actively developing its digital rupee. Furthermore, the election of Donald Trump, who supports the crypto industry, creates additional expectations for improved regulation in the USA.
Risks and challenges
However, volatility remains high. Forecasts concern a possible decrease in activity in the event of a negative scenario in the Taiwanese elections in January 2025. The threat of geopolitical instability may affect the crypto market in the coming months.
The results show that the crypto industry is entering a phase of active growth with increased interest in decentralized financial instruments (DeFi), such as Liquid Staked Derivatives (LSD), and further development of blockchain technologies.