Crypto News Highlights: December 30, 2024

Table Of Contents

Bitcoin Slumps to Below $94K; Analysts Expect Further Decline
- Spot Price: Bitcoin has dropped below $94,000, a significant dip from its late December high of $108,000.
- Technical Analysis:
  - Trading below the 20-day EMA, but well above the 200-day EMA.
  - RSI at 42 indicates bearish momentum.
  - Taker-Buy-Sell Ratio at 0.92 suggests sellers are in control.
- Market View:
  Analysts predict a potential decline to $80,000 due to negative technical patterns and the growing dominance of USDT. Positive perpetual futures funding rates hint at underlying bullish sentiment. Future performance may rely heavily on regulatory decisions and monetary policies.

Bybit Ordered to Cease Operations in Malaysia
- Regulatory Action: The Securities Commission of Malaysia has ordered Bybit and CEO Ben Zhou to halt operations for failing to secure proper authorization.
- Compliance Status:
  - As of December 25, Bybit disabled its website and mobile apps in Malaysia.
  - Similar challenges are faced in Japan and France. Bybit plans to re-enter these markets with the necessary licenses.
- Expansion Plans: Bybit aims to achieve regulatory-compliant growth in Austria, Kazakhstan, and Turkey.

Ripple’s RLUSD Stablecoin Increases 170% Volume
- Market Activity: Ripple’s RLUSD stablecoin saw a 170% increase in 24-hour trading volume.
- Drivers:
  - Tether USDT issues and regulatory constraints in European regions have increased demand for RLUSD.
  - Ripple’s approval by regulatory bodies and its integration within the Ripple ecosystem have further boosted market sentiment.
- Market Metrics:
  - RLUSD market cap: $53M
  - Trading volume: $33.67M
- XRP saw a decline of 5%, but its trading volume rose by 64%.
- Outlook: RLUSD’s inclusion within the XRP Ledger is expected to enhance XRP liquidity and utility.

Global Trend Towards Tactical Bitcoin Reserves
- Nations Adopting Bitcoin:
  - Hong Kong: Plans to introduce a Bitcoin reserve for its Exchange Fund, with limited exposure in diversified portfolios.
  - Germany: Former Finance Minister suggests the ECB and Bundesbank consider implementing Bitcoin reserves.
  - United States: Support for Bitcoin reserves is growing in U.S. states and among Senator Cynthia Lummis.
  - Russia: Expresses interest in maintaining strategic Bitcoin positions.
- Skepticism: Japan has refused to adopt Bitcoin reserves, citing regulatory and risk concerns.

Ethereum Holders Outperformed Bitcoin Holders in 2024
- Holder Trends:
  - Ethereum long-term holders increased from 59% to 75%, while Bitcoin holders decreased from 70% to 62%.
- Market Developments:
  - Inflows into Ether ETFs surged from $1 billion to $2.1 billion in 2024.
- Contributory Factors:
  - US regulatory reforms under the Trump administration.
  - More staking opportunities for Ethereum holders.
  - CFTC’s reduced regulation of Ethereum-based assets.

Bitcoin Bearish Future: Growing bearish sentiment could push Bitcoin prices further down, though long-term bullish signals remain.
Ripple Ecosystem Expanding: Increased demand for RLUSD indicates a growing interest in alternative stablecoins amidst regulatory pressures.
Regulatory Pressures: Firms like Bybit may face operational shifts due to tightening regulations.
Global Bitcoin Adoption: The move toward Bitcoin reserves reflects its growing role in strategic asset allocations.
Ethereum’s Rising Dominance: The strong growth of long-term Ethereum holders and ETF inflows signals Ethereum’s resilient market position as it enters 2025.