The crypto market displayed a bullish sentiment today, with the Fear and Greed Index rising to 79, indicating Extreme Greed, up from 73 yesterday. Despite a 0.48% decrease in the global crypto market cap to $3.41 trillion and a 12.05% drop in 24-hour trading volume to $117.91 billion, Bitcoin’s dominance increased to 57.20%, reflecting growing investor confidence. Key market movers included significant developments in Bitcoin ETFs, Ethereum momentum, and blockchain adoption across Asia.
Crypto fear and greed index | Source: Alternative.me
Quick Take
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Bitcoin hovers below $98K amid record ETF outflows.
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Ethereum ETFs surpass $2.5B inflows, setting a bullish tone for 2025.
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Singapore leads the global blockchain innovation race, with Hong Kong and South Korea close behind.
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Turkey mandates stricter crypto AML regulations, effective February 2025.
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Montenegro's court rejects Do Kwon's extradition appeal, reinforcing legal complexities.
Bitcoin Under $100,000: Mixed Sentiment Amid ETF Outflows
BTC/USDT price chart | Source: KuCoin
Bitcoin struggled to maintain its position near $98,000, facing resistance amid record outflows from BlackRock’s iShares Bitcoin Trust ETF (IBIT), which reported $188.7 million in single-day outflows on Christmas Eve. However, Bitcoin futures data showed a bullish stance, with a 12% annualized premium signaling strong demand for long positions. Analysts predict a potential rally toward $105,000, supported by Bitcoin's correlation with traditional markets like the S&P 500.
Read more: Bitcoin vs. Gold: Which Is a Better Investment in 2025?
Ethereum: Optimism Builds for $3,500 Breakout
ETH/USDT price chart | Source: KuCoin
Ethereum saw positive momentum as its ETFs surpassed $2.5 billion in inflows. Despite a 10% weekly price drop, ETH remained resilient, trading at $3,475. Analysts are optimistic about a breakout above $3,500, with projections of a $4,000 price target before President Trump’s inauguration. Institutional sentiment remains strong, with VanEck forecasting a $6,000 cycle top for Ethereum in 2025.
Singapore, Hong Kong, and South Korea Lead the Charge in Blockchain Innovation
Source: Cointelegraph
As per a study by ApeX Protocol, Singapore has solidified its position as the world’s top blockchain innovation hub, leading with an impressive 1,600 blockchain patents and over 2,400 industry jobs. The country’s strong regulatory framework, combined with its focus on fostering fintech innovation, has made it a hotbed for blockchain-related activities. With 81 crypto exchanges operating within its borders, Singapore continues to attract global talent and investment despite its relatively small population of under six million people.
Hong Kong closely follows Singapore, leveraging its robust financial infrastructure and global connectivity to integrate blockchain technology seamlessly. South Korea has also seen remarkable growth, with over 15.6 million crypto holders—representing 30% of its population—investing more than $70 billion in digital assets. Meanwhile, Israel is set to launch six Bitcoin mutual funds on Dec. 31, allowing local investors to gain exposure to Bitcoin through the Israeli shekel. These developments highlight the increasing adoption and regulatory progress in crypto across Asia and beyond.
Read more: Bitcoin Price Prediction 2024-25: Plan B Forecasts BTC at $1 Million by 2025
Legal Battles: Do Kwon’s Extradition Appeal Rejected
The legal saga of Do Kwon took a significant turn as Montenegro’s Constitutional Court dismissed his appeal against extradition. This decision strengthens the claims of South Korea and the United States, both of which have sought Kwon’s extradition to face charges related to the $40 billion collapse of Terra Luna in 2022. The court’s rejection underscores the increasing global cooperation in holding key crypto figures accountable for alleged financial crimes.
Do Kwon has remained a polarizing figure in the crypto industry, with his arrest in Montenegro earlier this year for using forged documents adding to the controversy. His legal battles serve as a precedent-setting case for cross-border accountability in cryptocurrency fraud. As both South Korea and the U.S. vie for jurisdiction, the outcome of his extradition could have lasting implications for international regulatory enforcement in the crypto industry.
Market Shifts: Turkey’s New AML Rules and BlackRock ETF Outflows
Turkey has taken steps to strengthen its anti-money laundering (AML) framework with new regulations requiring ID verification for crypto transactions above $425. The new rules, set to take effect in February 2025, aim to align Turkey with global AML standards and enhance investor protection in the burgeoning crypto market. These measures reflect Turkey's intent to create a safer and more transparent trading environment for its growing base of crypto users.
In the institutional space, BlackRock’s Bitcoin ETF witnessed its largest-ever single-day outflow, highlighting ongoing market volatility. Despite this, optimism persists, with VanEck projecting Bitcoin could reach $180,000 during the 2025 market cycle. These contrasting developments underscore the dynamic and unpredictable nature of the crypto markets, where regulatory advancements and investor sentiment play crucial roles in shaping market trajectories.
Conclusion
Today’s crypto market reflects a dynamic mix of optimism and caution. While Bitcoin and Ethereum face key resistance levels, bullish momentum persists in derivatives and ETF inflows. Asia continues to lead in blockchain adoption, with South Korea and Singapore setting benchmarks. Legal challenges, like Do Kwon’s case, underscore the evolving regulatory landscape. As we close 2024, the crypto market remains poised for growth amid global adoption and institutional interest.
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