A quiet year-end market... BTC and ETH see slight gains, while XRP and Solana ETFs see net inflows.
As the year-end approaches, the cryptocurrency market appears stagnant due to declining trading volume, while major coins show slight gains. Bitcoin and Ethereum rose 0.8% and 1%, respectively, defending against the year-end bear market. Conversely, investor sentiment remains depressed in the exchange and ETF markets, with capital outflows and extreme fear persisting.
According to CoinGecko on the 30th (local time), Bitcoin (BTC) rose 0.8% over the past 24 hours, reaching approximately $88,040 (approximately KRW 126.87 million). Ethereum (ETH) rose over 1% to $2,966 (approximately KRW 4.27 million). Binance Coin (BNB), Ripple (XRP), and Solana (SOL) also rose 0.7%, 0.9%, and 0.6%, respectively.
On this day, the total cryptocurrency market capitalization reached $3.07 trillion (approximately 4,433 trillion won), up approximately 1% from the previous day. However, trading volume remained low at $98.8 billion (approximately 1,423 trillion won). Bitcoin's market share was 57.4%, and Ethereum's was 11.7%.
ETFs continue to see net outflows, with only XRP and SOL performing well.
Bitcoin and Ethereum ETFs continue to see net outflows. Over the past 24 hours, the Bitcoin spot ETF has seen a net loss of $19.3 million (approximately KRW 27.8 billion), while the Ethereum ETF has seen a net outflow of $9.6 million (approximately KRW 13.8 billion). This marks the fourth consecutive day of net outflows for both products.
Meanwhile, selective interest continues, with Ripple-based ETFs recording net inflows of $8.4 million (approximately KRW 12.1 billion) on the day, and Solana ETFs recording $2.9 million (approximately KRW 4.2 billion). This suggests some institutional demand for XRP and SOL as alternative assets to Bitcoin and Ethereum.
Polkadot and XRP ecosystems are strong, but liquidations remain modest.
Ecosystem projects, including Polkadot (DOT) and XRP Ledger-based tokens, were among the most notable performers on the day. Top performers included Canton (CC), up 6%, LEO, up 3%, and Aptos (APT), up 2%.
The token with the biggest decline was TON, down 3.3%, followed by Internet Computer (ICP), down 3.2%, and Mantle (MNT), down 2.9%.
Forced liquidations were also modest. According to Coinglass, the total liquidation volume over the past 24 hours was $143.06 million (approximately 206.2 billion won), a relatively low figure. Of this, long liquidations amounted to $65.95 million (approximately 95.1 billion won), and short liquidations amounted to $77.11 million (approximately 111.1 billion won). Bitcoin and Ethereum accounted for more than half of all liquidations.
Fed internal interest rate cut outlook remains mixed, with investor sentiment still depressed.
The minutes of the December meeting released by the Federal Reserve (Fed) revealed differing views among members on the direction of interest rates. Some members argued for maintaining high rates for the time being due to inflation concerns, while others argued for an early cut due to slowing economic growth.
This uncertainty continues to weigh on investor sentiment. The market fear and greed index has remained in the "extreme fear" range throughout this month, contributing to the sluggish buying trend.
Article Summary by TokenPost.ai
๐ Market Interpretation
Despite the stagnant year-end trading, major cryptocurrencies managed to defend their positions with slight gains. Despite Bitcoin and Ethereum ETF outflows, Ripple and Solana ETFs are demonstrating their distinction through steady inflows.
๐ก Strategy Points
ETF flows reflect institutional preferences for specific coins. The Ripple and Solana ETF flows can serve as a basis for altcoin diversification strategies. However, uncertainty surrounding the Federal Reserve's interest rate policy could increase short-term market volatility.
๐ Glossary
- ETF (Exchange Traded Fund): A fund based on specific assets that even general investors can easily invest in.
Liquidation: The process by which leveraged positions are forcibly dissolved.
- Bitcoin Dominance: Bitcoin's share of the overall market
๐ก Want to know more? AI-prepared questions for you:
A. This is because investor trading activity has decreased as the year-end approaches. The "low trading volume" mentioned in the article means there are fewer people than usual trying to buy and sell cryptocurrencies. This is a natural phenomenon as many investors withdraw from the market during the holiday season.
A. The article emphasizes that the increases are very small. Bitcoin rose by 0.8% and Ethereum by 1%. These movements are unlikely to be particularly significant during the low-volume year-end season. They simply show that the market is moving without a clear direction.
A. ETFs are funds that invest in cryptocurrencies and are easily accessible to both institutional investors and the general public. The outflow of funds from Bitcoin and Ethereum ETFs signals that institutional investors are reducing their cryptocurrency investments. However, the article explains that the outflows are not significant.
A. Liquidations occur when investors are forced to liquidate their positions after investing in cryptocurrencies with borrowed money and incurring losses. According to the article, approximately $14.3 billion worth of liquidations occurred in the past 24 hours, indicating that many investors suffered losses due to price volatility.
A. The Federal Reserve's interest rate policy, the central bank of the United States, significantly influences global investor sentiment. The article explains that Fed officials are divided on whether to raise rates further or maintain them at current levels. This uncertainty is making investors cautious, leading to a decline in trading volume in the cryptocurrency market.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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