Bitcoin prices hovered around $94,000 this week, with analysts predicting a potential rise of up to four times by 2025, depending on Donald Trump's Strategic Bitcoin Reserve plan and Federal Reserve policies.
In 2024, U.S. spot Bitcoin ETFs saw impressive net inflows of $35.66 billion, while spot Ether ETFs reached $2.68 billion, bolstered by $349.3 million in the last four trading days.
Although the recent trend appears slightly bearish, this decline may be temporary. The upcoming alt-season peak and President-elect Trump's upcoming inauguration could ignite renewed positive momentum. Here are the key highlights you may have missed last week.
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TOP CRYPTO NEWS RECAP (December 22 - 28, 2024)
● Analyst Predicts Ethereum May Outperform Bitcoin in January
● IRS Classifies DeFi Front-Ends as Brokers for Tax Reporting
● US Government to Maintain Bitcoin Supply Without New Purchases in 2025
● Spot Bitcoin and Ether ETFs Record $38.3B Inflows in 2024
● Montenegro Approves Do Kwon's Extradition to the US
● Former FTX Executive Ryan Salame's Prison Sentence Reduced
Analyst Predicts Ethereum May Outperform Bitcoin in January
According to MN Capital founder Michael van de Poppe, Ethereum's relative strength to Bitcoin (ETH/BTC ratio) shows signs of growth, potentially breaking 0.04 in January 2025. He suggests this could trigger an Ethereum-driven "altcoin run" as funds flow into Ether while Bitcoin consolidates. The ETH/BTC ratio is currently 0.0356, up 3.26% in the past month. Analysts also expect spot Ether ETFs to outperform Bitcoin ETFs in 2025, with some calling Ethereum “the most under-owned asset." This could mark the end of Ethereum's underperformance against Bitcoin.
IRS Classifies DeFi Front-Ends as Brokers for Tax Reporting
The IRS has finalized rules requiring brokers, including decentralized finance (DeFi) front-end platforms, to report gross proceeds from digital asset transactions. Effective in 2027, these regulations apply to platforms facilitating digital asset sales, including decentralized exchanges. The IRS defines brokers as intermediaries with sufficient control over transactions, even through smart contracts. The rules aim to enhance taxpayer compliance and transparency, affecting up to 2.6 million taxpayers and an estimated 650–875 DeFi brokers. Data collection for compliance begins in 2026.
US Government to Maintain Bitcoin Supply Without New Purchases in 2025
Galaxy Digital predicts the US government will not buy Bitcoin in 2025 but will safeguard its existing 183,850 BTC, valued at approximately $17.36 billion. Alex Thorn, head of research, noted ongoing discussions about a Bitcoin reserve policy. Wyoming Senator Cynthia Lummis proposed the Bitcoin Act 2024 to accumulate 1 million BTC over five years. Analysts suggest that competition among nations may drive Bitcoin adoption, while countries like Japan and China are assessing their stances on strategic Bitcoin reserves.
Spot Bitcoin and Ether ETFs Record $38.3B Inflows in 2024
U.S. spot Bitcoin ETFs saw $35.66 billion in net inflows in 2024, far surpassing initial estimates, led by BlackRock's iShares Bitcoin Trust ETF at $37.31 billion. Ether ETFs also performed well, closing the year with $2.68 billion in inflows since their mid-year launch. Retail investors accounted for 80% of Bitcoin ETF demand, but analysts expect institutional interest to grow in 2025 as more clearinghouses emerge. Predictions for 2025 include Bitcoin reaching $200,000 and Ether climbing to $7,000, driven by growing adoption and tokenization efforts.
Montenegro Approves Do Kwon's Extradition to the US
Montenegro's Justice Minister Bojan Božović has approved the extradition of Terraform Labs co-founder Do Kwon to the United States, rejecting South Korea's competing request. The decision follows a prolonged legal battle, with Montenegro's courts reversing extradition rulings multiple times. Kwon, arrested in June 2023 for attempting to flee Montenegro with a false passport, faces charges in the U.S. related to Terraform Labs' collapse. This marks the conclusion of years-long proceedings, with Montenegro prioritizing the U.S. request based on legal criteria.
Former FTX Executive Ryan Salame's Prison Sentence Reduced
Ryan Salame, former co-CEO of FTX Digital Markets, has had his prison sentence reduced by one year, with his release now set for March 2031. Originally sentenced to 7.5 years in May 2024 for conspiracy to operate an unlicensed money-transmitting business and campaign finance fraud, Salame's initial release date was April 2032. The reasons for the reduced sentence remain unclear. Salame's legal team had argued for leniency, citing his lack of involvement in FTX’s core fraud and significant asset forfeitures as punishment.
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