Today's major events
1. Israel launches Bitcoin mutual funds
Starting from 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 of the funds will attempt to actively manage and strive to outperform Bitcoin's performance.
2. Russia allows companies to use Bitcoin and digital currencies
Russian Finance Minister Siluanov stated that Russia has amended legislation to allow companies to use Bitcoin and other digital currencies in international payments. This year, Russia also permitted 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 has surpassed 15.59 million for the first time, accounting for more than 30% of the national population, with total assets reaching 102.6 trillion won (about $79 billion). Among them, Bitcoin's price rose 35% in November, driving investment enthusiasm in the Korean crypto market. The trading volume of cryptocurrencies in South Korea has significantly increased, with an average holding amount per investor on the five major exchanges of about $5,070.
4. Trump may influence DeFi development
The founder of ETHDenver and CEO of Web3 company Vanar stated that the Trump administration may ease regulations on cryptocurrencies, aiding the development of DeFi (Decentralized Finance). The new U.S. government is expected to clarify whether crypto tokens fall under financial securities, potentially legalizing dividend payments for more tokens.
Market data
ETF fund flows
Bitcoin spot ETF saw a net outflow of $338 million yesterday, while Ethereum spot ETF had a net inflow of $53.54 million. Recently, there has been continuous inflow into Ethereum ETFs, which may signal new entry opportunities.
Coinbase international site hits a historical high
The total trading volume on Coinbase's international site exceeded $119 billion last week, setting a historical high, up 124% from the previous week. Among them, perpetual futures trading of 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 place in cryptocurrency rankings yesterday, with a total market value of $11.61 billion, up 18.34%. Gate.io's GT platform token also broke through $14, setting a historical high with an increase of 5.56%.
Rune transactions on the Bitcoin network have dropped to a new low
The proportion of transactions related to Runes on the Bitcoin network has dropped to 1.67%, significantly lower than earlier this year. As market attention shifts, investors' interest in high-risk applications related to Bitcoin has decreased, but as Bitcoin's price stabilizes, the market may refocus on these projects.
Industry-related knowledge
The crypto market rebounded during the Christmas holidays
While traditional markets are closed, the crypto market has significantly risen under the influence of Bitcoin. The options pain points for Bitcoin and Ethereum are $84,000 and $3,000 respectively, but these pain points may be invalid this year. In the short term, the market's implied volatility has slightly decreased, and it is expected to remain stable before the end of the year.
Altcoins welcome independent market trends
Despite the ongoing volatility in Bitcoin's price, some altcoins have begun to emerge independently. For example, UXLINK broke through $3.8, COW surpassed $1.2, VITA reached a historical 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 fully recover, and altcoins may welcome a new upward cycle.
The Fear and Greed Index has risen to 79
The current market's Fear and Greed Index is at 79, indicating extreme greed but has not yet reached a frenzy level. This is usually a precursor to the arrival of altcoin season, and historically, a decline in Bitcoin dominance leads to a significant surge in the altcoin market.
The current altcoin season index is 47. Once liquidity returns after the holidays, market activity typically rebounds again. It is expected that influenced by Trump's support, funds will continue to actively invest in the crypto industry. BTC is undergoing a correction, while altcoins show steady growth — this is the first sign of the arrival of altcoin season. Yesterday's large capital rebalancing towards altcoins witnessed this.
Various signs indicate that the altcoin season is approaching. We are currently in the final stage before a significant decline in BTC dominance, which only means one thing — it’s time to buy altcoins. As seen in previous cycles, the decline in BTC dominance will drive the altcoin market to achieve multiple growth.