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

Investing.com — The cryptocurrency market reached a file 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.

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

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

This resolution 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% improve 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 the most effective among the many prime 10 international belongings, second solely to Nvidia (NASDAQ:NVDA).

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

In the meantime, Ethena’s USDe has seen a speedy improve in its market cap to round $5.9 billion, surpassing DAI to turn out to be the third largest stablecoin by market capitalization. Components behind this success embrace 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 might 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 embrace Virtuals and ai16z, the crew behind the Eliza framework to launch your individual agent.

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

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