The December 2024 report from the CoinEx research team reveals a transformative month for the crypto market. Bitcoin surged past the $100,000 mark, driven largely by optimism following Trump's election as president. The report also explores the Fed’s hawkish stance, stablecoin inflows, and emerging trends such as AI Agents and Hyperliquid, setting a bullish tone for 2025. Bitcoin’s Milestone Achievements
In December 2024, Bitcoin surpassed the $100,000 mark for the first time, achieving a historic milestone. This wave of gains was mainly driven by expectations that Trump might launch a pro-cryptocurrency policy after being elected as the US president. On December 5, Bitcoin prices surged to an all-time high of $108,000 before retracing to $94,000. The consolidation is in line with market expectations for a year-end correction and points to the possibility of further gains following Trump's official inauguration in January 2025. Analysts remain optimistic, predicting that Bitcoin prices will reach $150,000 to $200,000 in the first quarter of 2025, depending on global liquidity and institutional fund inflows.
Impact of global central bank policies
The Federal Reserve adopted a hawkish policy, despite a 25 basis point rate cut, while also hinting that rate cuts in 2025 will be reduced, which intensified market volatility, leading to significant adjustments in both traditional and crypto markets. Concerns about inflation further increased uncertainty and raised more questions and expectations regarding Trump's upcoming economic policies.
Source: Federal Reserve; Data as of 18 Dec 2024
Meanwhile, the Bank of Japan (BOJ) chose to act cautiously amid increasing economic uncertainty, keeping interest rates unchanged at 0.25%. However, potential future rate hikes remain a key factor to watch closely, as they could disrupt market liquidity and the flow of funds in arbitrage trading.
AI Agents: Transformative Innovation in Web3
The discussion around AI Agents gradually heated up in the fourth quarter of 2024 and further solidified their position in the market in December. These AI Agents transformed from concept hype into a functional framework with practical applications already launched for consumers. The CoinEx research team detailed their technical architecture and investment potential in their report (AI Agents in the Crypto World: A Revolutionary Evolution from Web2 to Web3). It is expected that this topic will continue to dominate 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 the fourth quarter of 2024. Its token price skyrocketed from $6 to $27 and peaked above $35, achieving a 3.5-fold increase. During this period, the token price even exceeded $35, driving the fully diluted valuation (FDV) to $35 billion, demonstrating its strong fundamentals and community support. The ecosystem attracted high-profile projects such as Solv Protocol, further enhancing its initial token offering (TGE) appeal. 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 approaching $13 billion. Despite Bitcoin experiencing volatility and altcoin markets undergoing adjustments, the entry of new investors has kept the growth of stablecoins robust. This healthy liquidity structure supports the current bull market and suggests that 2025 may usher in a wave of altcoin season.
Outlook for 2025
The cryptocurrency market closed strongly in December, laying the groundwork for potential in 2025. Investors should continue to monitor central bank policies, changes in liquidity, and the development of emerging trends such as AI Agents and on-chain derivatives.
This article CoinEx Research Report: Bitcoin Achieves Historic Milestone in December 2024, Leading Trends in the Crypto Market first appeared in Chain News ABMedia.
