The 2024 December report by the CoinEx research team reveals a pivotal month for the cryptocurrency market. Bitcoin broke through the $100,000 mark, primarily driven by the optimistic sentiment following the election of former President Trump. The report also discusses the hawkish stance of the Federal Reserve, the inflow of Stablecoins, and emerging trends such as AI Agents and Hyperliquid, setting a bullish tone for 2025.
Bitcoin's Milestone Achievement
In December 2024, Bitcoin reached a historic milestone by surpassing the $100,000 mark for the first time. This rally was mainly driven by the expectation of pro-cryptocurrency policies under the incoming Trump administration. On December 5th, Bitcoin price soared to a new all-time high of $108,000, before retracting to $94,000. This consolidation is in line with the market's expectations for a year-end adjustment and suggests the potential for further gains in the first quarter of 2025 after Trump's inauguration. Analysts remain optimistic, projecting Bitcoin prices to reach $150,000 to $200,000 in the first quarter of 2025, depending on global liquidity and institutional capital inflows.
Impact of Global Central Bank Policies
The Federal Reserve's hawkish policy, with a 25-basis point rate cut but signaling reduced easing in 2025, has increased market volatility, leading to significant adjustments in both traditional and cryptocurrency markets. Inflation concerns have further added to the uncertainty and raised more questions and expectations about the economic policies to be introduced by the incoming Trump administration.
Source: Federal Reserve; Data as of 18 Dec 2024
Meanwhile, the Bank of Japan (BOJ) has chosen to act cautiously in the face of increased economic uncertainty, maintaining its interest rate at 0.25%. However, the potential for future rate hikes remains a key factor to watch, as this could disrupt market liquidity and the flow of capital for arbitrage trades.
AI Agents: Transformative Innovation in Web3
The hype around AI Agents gained momentum in the fourth quarter of 2024 and further solidified their position in the market by December. These AI Agents have transitioned from conceptual hype to practical functional frameworks, with some even launching consumer-facing applications. The CoinEx research team's report, "AI Agents in the Crypto World: Revolutionary Evolution from Web2 to Web3", delves into their technical architecture and investment potential. This topic is expected to continue dominating the Web3 space in 2025, creating new growth opportunities for the market.
Expansion of the Hyperliquid Ecosystem
Hyperliquid has become the leader in the on-chain derivatives market, experiencing exponential growth in the fourth quarter of 2024. Its token price soared from $6 to a peak of over $35, representing a 3.5x increase. During this period, the token price even exceeded $35, driving the fully diluted valuation (FDV) to reach $35 billion, demonstrating its strong fundamentals and community support. The ecosystem has attracted high-profile projects like Solv Protocol, further enhancing the appeal of its token generation event (TGE). Additionally, its sub-tokens, such as HFUN, have also performed remarkably, increasing by 360% in the fourth quarter.
Stablecoins: The Pillar of Liquidity
Stablecoins have maintained a robust liquidity structure, with inflows of nearly $13 billion in December. Despite the volatility in Bitcoin and the adjustment in the Altcoin market, the influx of new investors has sustained the strong growth of Stablecoins. This healthy liquidity structure supports the current bull market and suggests the potential for an Altcoin season in 2025.
Outlook for 2025
The cryptocurrency market ended 2024 on a strong note, laying the foundation for the potential in 2025. Investors should continue to monitor central bank policies, liquidity changes, and the development of emerging trends such as AI Agents and on-chain derivatives.
About CoinEx
CoinEx was established in 2017 and is a global Altcoin exchange dedicated to making Altcoin trading simpler. The platform provides a range of services, including Spot trading, Margin trading, Futures, Swaps, Automated Market Maker (AMM), and Financial management services, serving over 10 million users from more than 200 countries and regions.
The CoinEx Research team is committed to providing in-depth analysis and insights to help investors navigate the evolving Altcoin market and uncover its complexities and opportunities.
