The cryptocurrency market experienced a decline in December 2024, with valuations of major digital assets decreasing. This pullback may have been influenced by more hawkish signals from the Federal Reserve, as they hinted at a slower rate of rate cuts in the coming year. Bitcoin ended the month with a 3% decline, while Ether saw a sharper drop of 10%. However, despite this dip, Bitcoin had a strong year overall, ending with a 121% gain. Historical data suggests that these temporary drawdowns are common in crypto bull markets. In 2024, the launch of spot Bitcoin and Ether exchange-traded products (ETPs) in the U.S. market attracted significant investor interest, with $38 billion in cumulative net inflows by the end of the year. December alone saw $4.7 billion in net inflows into these ETPs, indicating growing demand from institutional investors. Furthermore, MicroStrategy continued its aggressive Bitcoin accumulation strategy, acquiring 194,180 Bitcoin in the fourth quarter, with a market value of $18.2 billion by year-end. This level of Bitcoin accumulation by MicroStrategy was comparable to the net inflows into spot Bitcoin ETPs during the same period.



Other News from Today