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5mins read
Published on: 3 days ago, Dec 18, 2024
#Crypto 360
#Financial Markets
Bitcoin hits $108K, Ripple’s RLUSD boosts XRP demand, & stablecoins surge as the crypto market approaches 2025.
Bitcoin’s rise to $108,000 marks a historical milestone, showcasing its growing adoption and market dynamics. This surge reflects strong investor sentiment, underpinned by a significant supply squeeze. According to a report by the crypto research platform 10x Research, cryptocurrency exchanges are experiencing massive Bitcoin outflows, drastically reducing the availability of Bitcoin on trading platforms. Simultaneously, over-the-counter (OTC) desks, which facilitate direct transactions between buyers and sellers, are running low on inventory. This scarcity has intensified the upward price momentum, creating a robust psychological support level at $100,000. As industry leaders describe the market as “uncharted waters”, Bitcoin’s resilience and premier digital asset status shine brighter than ever.
Image Source: Dlnews
MicroStrategy’s recent acquisition of 15,350 BTC for approximately $1.5 billion at an average price of $100,386 per Bitcoin highlights the company’s unwavering commitment to Bitcoin as a strategic asset. This purchase boosts their total Bitcoin holdings to 439,000 BTC, acquired at an aggregate cost of $27.1 billion, reflecting an average acquisition price of $61,725 per Bitcoin. With the current price of Bitcoin surging to $108,000, MicroStrategy’s strategy has yielded impressive returns, achieving a quarterly yield of 48.4% and a year-to-date yield of 74.4%, solidifying its position as one of the largest corporate Bitcoin holders.
The announcement of a potential US strategic Bitcoin reserve under President-elect Trump has significantly bolstered market confidence. This proposal signals a mainstream embrace of Bitcoin, potentially legitimising it as a global asset class. Analysts predict that such a move could trigger a ripple effect, with other nations and sovereign funds incorporating Bitcoin into their reserves. This development underscores Bitcoin’s evolving role in global finance, with market participants speculating its impact on institutional adoption and policy-making.
With Bitcoin already achieving a new peak, market observers are optimistic about further price increases as Trump’s inauguration approaches. Predictions of Bitcoin reaching $120,000 underscore the market’s bullish sentiment. This optimism is fuelled by expectations of sustained demand and the belief that Trump’s pro-Bitcoin policies could drive broader adoption. As the industry awaits these developments, the ongoing supply squeeze adds a compelling urgency for investors, making Bitcoin a focal point in the global financial narrative.
Stablecoins are expected to expand significantly in 2025, driven by global adoption and their utility in digital financial solutions. Two companies recently launched stablecoins to capitalise on the rising demand for fiat-backed digital assets.
Ethena Labs, in partnership with BlackRock and Securitize, is launching UStb, a new stablecoin backed by BlackRock’s tokenised US Treasuries fund, BUIDL. Unlike Ethena’s synthetic dollar, USDe, UStb will be directly supported by real-world assets, providing users with a more stable and secure digital asset option.
The reserves for UStb will be invested in BlackRock’s USD Institutional Digital Liquidity Fund, tokenised on the Ethereum blockchain, ensuring a stable $1 value per token. This makes it ideal for use as collateral on centralised exchanges and offers a reliable option during volatile market conditions.
This launch highlights the growing connection between traditional finance and blockchain technology. By combining tokenised US Treasuries with a stablecoin, Ethena aims to provide a secure, transparent, and practical digital asset for both individual users and the broader financial ecosystem.
On December 17, Ripple launched its enterprise-grade stablecoin, Ripple USD (RLUSD), now trading on global exchanges. RLUSD is designed for instant 24/7 global payments, seamless on/off ramps, and access to real-world assets. Built on the XRP Ledger (XRPL) and XRP-EVM sidechain, RLUSD requires XRP for transaction gas fees, driving increased demand for Ripple’s native token. Markets expect RLUSD adoption to significantly boost XRP utility and trading activity in 2025.
Despite the SEC labelling RLUSD as an unregistered crypto asset in April 2024, Ripple launched the stablecoin with approval from the New York Department of Financial Services (NYDFS). Pro-crypto lawyer Bill Morgan dismissed the SEC’s concerns, emphasising Ripple’s regulatory confidence.
Following the launch, XRP surged 3.39% to $2.5683, outperforming the broader crypto market. Future XRP price movements may depend on the Senate Banking Committee’s vote on SEC Commissioner Caroline Crenshaw’s renomination, with a potential pro-crypto shift under President-elect Trump likely to further boost XRP prices.
Image Source:XRP chart FX empire
The cryptocurrency market is experiencing notable activity, with significant performances from key tokens. Aave (AAVE), a leading DeFi protocol, has reached a total value locked (TVL) of $21.55 billion, reflecting growing investor confidence. Additionally, the full supply cap of its native stablecoin, sUSDe, has been utilised at $850 million, showcasing increasing demand.
Meanwhile, Lunex Network (LNEX), an emerging DeFi platform, has gained momentum by raising over $5.2 million in its presale, with the token currently priced at $0.0044. The platform’s support for over 50,000 currency pairs across 40 blockchains and its non-custodial wallet features have attracted significant investor attention.
Ethereum (ETH), after surpassing the $4,000 mark, is currently in a consolidation phase as investors make profits. Despite this, metrics like rising exchange withdrawals and increased active addresses suggest growing interest and potential for future growth. These developments highlight a dynamic market landscape, with innovative projects like Aave and Lunex gaining traction while Ethereum solidifies its position.
Image Source: Aave TVL value, DefiLlama.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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