Daily Market Report (December 26, 2024, 20:35)
ChainDD's market report on December 26 shows the comprehensive index compared to CoinMarketCap quotes:
BTC is priced at $94,180.81, down about 1.98% in the last 24 hours;
ETH is priced at $3,403.58, up about 1.76% in the last 24 hours;
BNB is priced at $683.00, up about 2.88% in the last 24 hours;
DOGE is priced at $0.3209, up about 1.72% in the last 24 hours;
DOT is priced at $7.27, down about 3.73% in the last 24 hours.
Crypto Industry News
Hong Kong establishes a gold exchange and plans to develop 'digital gold.'
Starting January 1, 2025, the Hong Kong Special Administrative Region will have a new trading institution named 'Hong Kong Gold Exchange,' which will be renamed and incorporated from the Gold and Silver Exchange that has been operating locally for 114 years, and plans to establish a vault and digital gold.
Key topics of U.S. cryptocurrency legislation in 2025 include stablecoin legislation and the FIT21 bill.
The U.S. Congress may push for cryptocurrency legislation in 2025, which is expected to be the most supportive session for the crypto industry to date, with Trump repeatedly promising to support cryptocurrencies after being elected president. Key topics include stablecoin legislation and the FIT21 bill, focusing on regulatory frameworks and decentralized standards. Tax issues will become key, including adjustments to staking reward tax rules. At the same time, Wyoming Senator proposed establishing a national Bitcoin reserve, but it lacks broad support. Senate Democrat Elizabeth Warren's opposition may pose challenges to the legislative process.
Hong Kong (Stablecoin Regulation Draft) has been submitted for the first reading in the Legislative Council.
The Hong Kong government published the (Stablecoin Regulation Draft) in the (Hong Kong Special Administrative Region Gazette) on December 6, bringing it closer to becoming law. On December 18, the bill was submitted for the first reading in the Hong Kong Legislative Council. Before the bill is signed into law, it must undergo three readings, which include a series of debates, reviews, and potential amendments. Once the bill passes all three readings, it will be forwarded to the Chief Executive of Hong Kong for signing into law.
The stablecoin bill consists of three key components: licensing and requirements for designated stablecoin issuers, restrictions on the issuance and marketing of designated stablecoins, and broader consumer protection. Once the bill is signed into law, stablecoin issuers in Hong Kong will need to obtain a license from the Hong Kong Monetary Authority (HKMA), and issuers must comply with comprehensive requirements to obtain a license. Regulators will assess the issuers and their controllers, resources, stablecoins, reserve assets, and mechanisms to stabilize their value. Furthermore, only regulated entities and platforms will be allowed to provide stablecoins or sell them to the public in Hong Kong.
Citi: Six key factors, including stablecoin issuance and regulation, will help determine cryptocurrency trends in 2025.
Citi analyst Alex Saunders pointed out six key factors that will help determine cryptocurrency prices in 2025 in a report last Friday, including ETF activity, regulation, and the future of stablecoins;
Supportive macro backdrop
Analysts expect the current macro backdrop to continue supporting high-risk trading in the first quarter of next year, but warn that the outlook thereafter is less certain. The outlook may shift depending on Trump's economic policies and stock market fluctuations.
Continuous capital inflow for spot ETFs
Analysts expect the strong capital inflows for cryptocurrency spot ETFs in their first year of listing to continue into 2025, providing further momentum for price growth.
Cryptocurrency allocation in portfolios
Portfolio allocation will also be key to future returns in cryptocurrencies. Analysts noted that during this year's rebound, Bitcoin added value to multi-asset portfolios. However, it remains a highly volatile and risky asset, with risks to the total portfolio reaching 10% or more when the allocation exceeds 3%.
Stablecoin issuance
Analysts stated that the continued issuance of stablecoins was boosted after Trump's election, which will help create a healthier cryptocurrency market.
Higher adoption rates
Analysts noted that the most important theme to track for cryptocurrencies is the adoption rate.
Regulatory easing
Finally, analysts stated that regulation will be a major theme next year as Trump takes office. The incoming U.S. president has appointed several cabinet candidates who support cryptocurrencies. Their policies remain unclear, but the industry widely expects regulation to be more lenient, which could drive broader adoption.
Russian Finance Minister: Russian companies are currently using BTC for international trade.
Russian Finance Minister Anton Siluanov stated that Russian companies are currently using BTC for international trade, and Putin also supports this initiative. Due to secondary sanctions from the U.S., Moscow is considering using cryptocurrencies as a solution.
Putin openly accused the U.S. of politicizing the dollar and asserted that Bitcoin cannot be stopped. Russia's shift towards cryptocurrency is reshaping trade and global finance.
The Japanese government has formally responded to the Bitcoin reserve plan: the volatility of crypto assets is inconsistent with the current foreign exchange reserve system.
The Japanese government recently formally responded to a query from Senator Satoshi Hamada regarding the latest developments in the U.S. and other countries promoting Bitcoin reserves. The written response was issued in the name of Prime Minister Shigeru Ishiba, clarifying the government's position on the possibility of holding crypto assets as reserves.
Senator Satoshi Hamada stated on the 11th of this month, 'I believe Japan should follow the U.S. and consider investing some of its foreign exchange reserves in crypto assets like Bitcoin,' and sought government opinion on this. The reply pointed out that Japan currently has no understanding of the trends regarding the introduction of Bitcoin reserves by the U.S. and other countries, as these plans are still in the discussion phase, making it 'difficult for the government to express its views.'
Moreover, according to the legal framework for special account operations, 'crypto assets do not fall under the category of foreign exchange,' and the current foreign exchange reserves are intended to stabilize foreign currency assets and foreign currency bond markets.
The reply repeatedly emphasized that ensuring the safety and liquidity of foreign exchange reserves is the top priority in account management. This indicates that the government recognizes the volatility (price fluctuations) of crypto assets, including Bitcoin, as inconsistent with the existing system.
Prime Minister Ishiba's official response once again indicated that as discussions regarding the inclusion of crypto assets in national reserve strategies progress both domestically and internationally, the Japanese government remains cautious.
The Japanese Financial Services Agency will hold a meeting with financial industry organizations, with an agenda that includes improving internal audit measures for crypto assets.
The Japanese Financial Services Agency announced that it will hold a 'Financial Institutions Internal Audit Promotion Committee' meeting on January 25, 2025, aimed at improving the overall level of internal audits in financial institutions, including those involving crypto assets (virtual assets). It is reported that the theft of 4,502.9 BTC from DMM Bitcoin previously triggered a fundamental review of the security system in the crypto asset industry.
In response to this situation, the Financial Services Agency strongly recommends that crypto asset-related businesses implement multi-factor authentication and strengthen monitoring of suspicious access, and also requires companies to conduct self-checks to confirm whether their wallet management systems and leak risk response measures are appropriate. Additionally, to gain the trust of domestic and foreign stakeholders, the government has formulated a policy that takes international trends into account.
Numerous financial institutions, including the crypto asset industry, are expected to participate in this roundtable. In addition to relevant organizations such as the Japan Virtual Currency Exchange Association (JVCEA), the Japan Bankers Association, the National Association of Regional Banks, consulting agencies, and external experts will also participate in discussions to consider specific measures to enhance the complexity of internal audits.
