CoinEx Research's December 2024 report highlights a transformative month for crypto, with Bitcoin surpassing $100,000 amid optimism over Trump’s presidential victory. The report also examines the Fed’s hawkish stance, stablecoin inflows, and emerging trends like AI Agents and Hyperliquid's growth, setting a bullish tone for 2025.
Bitcoin’s Milestone Achievement
December 2024 marked a historical milestone for Bitcoin as it breached the $100,000 threshold. The rally was largely driven by optimism surrounding Donald Trump’s presidential victory and expectations of his pro-crypto policies. On December 5, Bitcoin surged to an all-time high of $108,000 before retracing to $94,000. This consolidation aligns with predictions of a year-end recalibration, with further growth expected post-inauguration in January 2025. Analysts maintain a bullish outlook, targeting $150,000 to $200,000 by Q1 2025, contingent on global liquidity and institutional inflows.
Global Central Bank Policies Contribution
The Federal Reserve adopted a hawkish stance, cutting rates by 25 basis points but signaling fewer cuts in 2025. This contributed to market volatility, with sharp corrections across traditional and crypto markets. Inflationary concerns added to the uncertainty, raising questions about Trump’s forthcoming economic policies.
Source: Federal Reserve; Data as of 18 Dec 2024
Conversely, the Bank of Japan (BOJ) held its rate steady at 0.25%, opting for caution amidst economic uncertainties. However, potential rate hikes remain a critical factor to monitor, as they could disrupt liquidity flows and carry trades.
AI Agents: Transformative Web3 Innovation
The narrative surrounding AI Agents, which gained traction in Q4, solidified in December. These agents evolved from speculative hype to functional frameworks, with consumer-ready applications. CoinEx Research’s AI Agents in the Crypto World: Revolutionary Evolution from Web2 to Web3 highlighted their technical architecture and potential for investment. This theme is expected to dominate the Web3 landscape in 2025, offering new growth avenues.
Hyperliquid’s Ecosystem Expansion
Hyperliquid emerged as a leader in on-chain derivatives, witnessing exponential growth in Q4. Its token price soared from $6 to $27, with a peak above $35, achieving a 3.5x increase. During this period, the price even exceeded $35, pushing the FDV to $35 billion, reflecting strong fundamentals and community support. The ecosystem attracted high-profile projects, such as Solv Protocol, enhancing its appeal for TGE. Subsidiary tokens like HFUN also demonstrated remarkable performance, surging 360% in Q4.
Stablecoins: A Pillar of Liquidity
Stablecoins sustained their bullish liquidity structure, with inflows nearing $13 billion in December. Despite Bitcoin’s volatility and altcoin corrections, the influx of new investors kept stablecoin growth robust. This healthy liquidity supports the ongoing bull market and signals a potential altcoin season heading into 2025.
Looking Ahead
The cryptocurrency market closed December on a high note, setting the stage for a promising 2025. Investors should keep an eye on central bank policies, liquidity flows, and evolving trends like AI Agents and on-chain derivatives.
About CoinEx
Established in 2017, CoinEx is a global cryptocurrency exchange committed to making crypto trading easier. The platform provides a range of services, including spot and margin trading, futures, swaps, automated market maker (AMM), and financial management services for over 10 million users across 200+ countries and regions.
CoinEx Research remains committed to providing in-depth analyses and insights into the evolving cryptocurrency market, helping investors navigate through the complexities and opportunities that lie ahead.
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