Today's major events
1. Israel launches Bitcoin mutual funds
Starting December 31, six mutual funds tracking Bitcoin prices will be listed in Israel. These funds will be provided by companies such as Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI, with management fees ranging from 0.25% to 1.5%. One fund will attempt to actively manage to outperform Bitcoin's performance.
2. Russia allows businesses to use Bitcoin and digital currencies
Russian Finance Minister Siluanov stated that Russia has amended legislation to allow businesses to use Bitcoin and other digital currencies for international payments. This year, Russia also allowed the use of cryptocurrencies in foreign trade and has legalized Bitcoin mining. He mentioned, "We will allow the use of Bitcoin mined in Russia for foreign trade transactions."
3. South Korea's cryptocurrency market explodes
As of the end of November, the number of cryptocurrency investors in South Korea surpassed 15.59 million for the first time, accounting for over 30% of the national population, with total assets reaching 102.6 trillion won (approximately $79 billion). During November, Bitcoin's price increased by 35%, driving investment enthusiasm in the South Korean crypto market. The trading volume of cryptocurrencies in South Korea has surged, with investors in the top five exchanges holding approximately $5,070 per person.
4. Trump may influence the development of DeFi
The founder of ETHDenver and CEO of Web3 company Vanar stated that the Trump administration may relax regulations on cryptocurrencies to help the development of DeFi (Decentralized Finance). The new U.S. government is expected to clarify whether crypto tokens qualify as financial securities, which could legalize dividend payments for more tokens.
Market data
ETF fund flows
Bitcoin spot ETF experienced a net outflow of $338 million yesterday, while Ethereum spot ETF saw a net inflow of $53.54 million. Recently, the inflow of funds into Ethereum ETFs may signal new entry opportunities.
Coinbase International sets a new historical high
Coinbase International's total trading volume last week exceeded $119 billion, setting a new historical high, up 124% from the previous week. Among them, perpetual futures trading for Bitcoin, Ethereum, Solana, XRP, and Dogecoin accounted for 99.8% of the total trading volume.
Bitget and Gate.io platform tokens perform strongly
Bitget's BGB platform token rose to 23rd in the cryptocurrency rankings yesterday, with a total market capitalization of $11.61 billion, an increase of 18.34%. Gate.io's GT platform token also broke through $14, setting a new historical high, with an increase of 5.56%.
Runes transactions on the Bitcoin network have dropped to a new low
The share of transactions related to Runes on the Bitcoin network has dropped to 1.67%, significantly lower than earlier this year. As market focus shifts, investor interest in high-risk Bitcoin-related applications decreases, but as Bitcoin prices stabilize, the market may refocus on these projects.
Industry-related knowledge
Crypto market rebounds during Christmas holidays
While traditional markets are closed, the crypto market has significantly risen, driven by Bitcoin. The options pain points for Bitcoin and Ethereum are $84,000 and $3,000, respectively, but these pain points may become ineffective this year. In the short term, the market's implied volatility has slightly decreased, and it is expected that volatility will remain stable before the end of the year.
Altcoins welcome independent trends
Despite the continued price volatility of Bitcoin, some altcoins have begun to show independent trends. For example, UXLINK broke through $3.8, COW exceeded $1.2, VITA reached a historic high of $6.58, and RIF and URO also rose due to airdrop news. It is expected that after the holidays, as liquidity returns, the market will see a comprehensive recovery, and altcoins may welcome a new rising cycle.
The Fear and Greed Index rose to 79
The current market's Fear and Greed Index is 79, indicating extreme greed, but it has not yet reached a frenzy level. This is usually a precursor to the arrival of the altcoin season; historically, a decline in Bitcoin's dominance leads to a significant increase in the altcoin market.
Currently, the altcoin season index is 47. Once liquidity returns after the holidays, market activity typically warms up again, and with the influence of Trump's support, funds are expected to continue actively investing in the crypto industry. BTC has seen corrections while altcoins display steady growth—this is the first sign of the arrival of the altcoin season. Yesterday's significant capital rebalancing towards altcoins witnessed this.
Various signs indicate that the altcoin season is approaching. We are currently in the last stage before a significant decline in BTC dominance, which only means one thing—it's time to buy altcoins. As seen in previous cycles, a decline in BTC dominance will drive the altcoin market to achieve multiple growth.