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ToggleLast week, the BTC ETF experienced a large net outflow
On December 19, the BTC ETF in the US experienced a record $670 million in capital outflows, followed by nearly $300 million in net outflows on December 20. The iShares BTC Trust (IBIT) led the withdrawals with $72.7 million. These movements reflect investors' cautious sentiment under market volatility.
Despite the market turmoil, BTC has shown remarkable resilience, rebounding from $92,000 to $99,500 between December 20 and 21. This is mainly due to the positive latest PCE data released by the US last Friday, which led the market to believe that the Fed may only have 2 rate cuts in 2025. This shows that the rise and fall of BTC prices is now highly related to the Fed's rate cut actions next year. As Trump is about to take office in the White House next January, it will also be worth watching whether he can introduce more pro-crypto policies.
Outlook for 2025: Will the Trump administration introduce more pro-crypto policies?
The incoming Trump administration is expected to foster a crypto-friendly regulatory environment, laying the foundation for accelerated growth of BTC in 2025. This pro-crypto leader is expected to fill key positions in agencies like the US Securities and Exchange Commission (SEC). Additionally, in recent days, Senator Cynthia Lummis has introduced the BTC Reserve Act, which proposes for the US to hold a 1 million BTC reserve and plans to reduce the national debt by 35% by 2049. According to asset manager VanEck, this measure could lead to a 25% annual compound growth rate for the BTC price.
By 2025, BTC will be more deeply integrated into the global financial system. Companies like MicroStrategy have already set precedents for using BTC as a treasury asset, while emerging markets are increasingly using it as a hedge against inflation and currency instability. BTC ETFs further legitimize the asset and expand the reach to institutional and retail investors.
With increased regulatory transparency, the role of BTC as a bridge between traditional finance and digital innovation will be further strengthened. Whether through US reserves, corporate adoption, or reliance in emerging markets, BTC is poised to redefine global finance in 2025 and provide resilience and adaptability in the evolving economic landscape.
The critical moment for BTC
Facing record ETF capital outflows, the resilience of BTC has highlighted its adaptability and strength. As BTC approaches $100,000, it is not just a short-term phenomenon, but a long-term driver of financial innovation.
Looking ahead, BTC will redefine global finance. Its hedging role in emerging markets, the growth of institutional adoption, and the potential for regulatory reform in the US all highlight its transformative potential. While BTC prices may face some obstacles in the short term, there are increasing signs that BTC may gain more support in the future.
Risk Warning
Crypto asset investments are highly risky, and their prices may fluctuate dramatically, potentially resulting in a total loss of your principal. Please carefully evaluate the risks.
