Crypto market sees correction after document surge in December 2024- report

Investing.com — The cryptocurrency market reached a document excessive of $3.91 trillion in December 2024, pushed by optimism about rules, institutional adoption, and Bitcoin‘s new all-time excessive of $108,000.

Elements that contributed to Bitcoin’s rise included MicroStrategy’s inclusion within the Nasdaq 100 and continued Bitcoin acquisitions, in response to Binance Analysis.

Nevertheless, the market noticed a pointy correction in the direction of the tip of December when the Federal Reserve scaled again its deliberate 2025 fee cuts from 4 to 2, regardless of a modest 0.25% lower through the month.

This determination resulted in a market correction that erased over $0.5 trillion from the cryptocurrency market capitalization.

Regardless of the late December correction, Bitcoin ended the 12 months with a 123.4% enhance in its market cap, rating it because the seventh largest international asset by market cap, forward of Saudi Aramco (TADAWUL:2222) and Silver. Bitcoin’s efficiency was top-of-the-line among the many prime 10 international belongings, second solely to Nvidia (NASDAQ:NVDA).

Elements that contributed to this efficiency embody spot ETF approvals, Bitcoin Halving, shifts in financial coverage, and expectations of a extra supportive regulatory surroundings. If the expansion continues into 2025, Bitcoin’s place as a number one asset class might be additional solidified.

In the meantime, Ethena’s USDe has seen a fast enhance in its market cap to round $5.9 billion, surpassing DAI to turn into the third largest stablecoin by market capitalization. Elements behind this success embody the excessive yield behind staked USDe and the addition of sUSDe as a collateral asset on Aave in November.

In December, decentralized spot and perpetuals volumes reached all-time highs of $326 billion and $356 billion, respectively. Decentralized perpetuals buying and selling surged over 370% year-to-date, largely pushed by Hyperliquid. Lending and liquid staking protocols additionally reached new TVL highs of $55 billion and $71 billion, respectively. The DeFi sector may see additional progress with the incoming pro-crypto Trump administration.

AI Brokers have gotten extra prevalent within the crypto world, with prime AI agent tokens now commanding multi-billion greenback valuations and round 100,000 every day impressions. The highest platforms embody Virtuals and ai16z, the staff behind the Eliza framework to launch your personal agent.

Probably the most notable particular person agent is aixbt, which offers every day market evaluation on a spread of crypto matters. Whereas many brokers concentrate on comparable use circumstances, there’s a rising variety of leisure brokers, with trading-agents additionally being developed.

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