The crypto market displayed a blend of optimism and caution today. The global crypto market cap stands at $3.35 trillion, reflecting a 2.49% increase over the last day. However, the total crypto market volume over the past 24 hours dropped by 12.55% to $96.5 billion, with DeFi contributing $7.99 billion (8.28%) and stablecoins accounting for $88.4 billion (91.60%).
Quick Take
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Bitcoin ETF outflows hit a record $188.7M on Christmas Eve, dragging prices below $98,000.
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Ethereum ETFs attracted over $2.6B in December, signaling institutional confidence in ETH.
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Aave surpassed $33.4B in net deposits, setting a new all-time high for the DeFi platform.
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NFTs recorded $8.8B in 2024 sales volume, up $100M from 2023, indicating steady recovery.
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Celsius filed an appeal over its $444M claim against FTX, escalating its legal battles.
Crypto fear and greed index | Source: Alternative.me
Bitcoin's dominance decreased slightly by 0.53% to 56.20%, while Ethereum ETFs continued to attract significant inflows. The Crypto Fear and Greed Index has improved to 70, signifying Greed, from yesterday’s 66.
Meanwhile, Aave hit an all-time high in net deposits, NFTs maintained their recovery momentum, and Celsius escalated its legal appeal against FTX. These developments underscore the dynamic nature of the crypto landscape as we approach the end of 2024, with both growth opportunities and challenges shaping market sentiment.
Crypto Market Outlook: Mixed Signals as 2025 Begins
The global crypto market cap decreased slightly by 0.48% to $3.41 trillion, while trading volume dropped by 12% to $117.91 billion. Despite these declines, Bitcoin’s dominance increased to 57.20%, reflecting sustained investor interest in the leading cryptocurrency. Ethereum's resilience and the surging interest in DeFi indicate that the market is far from bearish.
Institutional participation remains a key driver, with Ethereum ETFs leading the charge. At the same time, the rise in Aave’s net deposits and the strong performance of NFTs signal continued adoption of decentralized technologies. Analysts are closely watching for macroeconomic catalysts, such as potential rate cuts in early 2025, that could fuel a broader rally.
Read more: Crypto Market Outlook 2025: Top 10 Predictions and Emerging Trends
Bitcoin Faces ETF Outflows and Short-Term Pressure Under $95K
Bitcoin ETF flows in December 2024 | Source: TheBlock
Bitcoin’s price hovered below $95,000 today, grappling with significant resistance amid record outflows from BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust ETF. The $188.7M outflow marked the highest single-day withdrawal for the fund, raising concerns about short-term sentiment.
However, Bitcoin futures data painted a more optimistic picture, with a 12% annualized premium indicating strong demand for long positions. Analysts predict that Bitcoin could break above $100,000 in early 2025, with support from its historical correlation to the S&P 500. Long-term holders remain profitable, with realized price metrics showing significant gains, potentially mitigating sell-off risks.
Read more: Bitcoin vs. Gold: Which Is a Better Investment in 2025?
Ethereum ETFs Attract Record Inflows of Over $2.6B as Optimism Builds
Ethereum ETF flows in December 2024 | Source: TheBlock
Ethereum continued to show resilience, trading at $3,475 despite a 10% weekly dip. December marked a milestone for Ethereum ETFs, with over $2.6B in inflows, reflecting growing institutional interest. BlackRock’s iShares Ethereum Trust led the pack, while VanEck maintained its bullish outlook, projecting a $6,000 ETH price target for 2025.
Market participants are optimistic about Ethereum breaking the $3,500 resistance in the near term. Factors like the proliferation of AI agents operating on Ethereum and increased staking rewards through ETFs further enhance its appeal. Analysts highlight the upcoming U.S. presidential inauguration as a potential catalyst for Ethereum’s next bullish run.
Read more: The History of Bitcoin Bull Runs and Crypto Market Cycles
Aave Surpasses $33.4B in Deposits, Signaling DeFi Growth
Aave TVL | Source: DefiLlama
Aave reached an all-time high of $33.4B in net deposits, surpassing its 2021 peak. The lending protocol expanded its ecosystem significantly in 2024, adding support for BNB Chain, ZKsync Era, and Scroll. Community proposals for new markets in 2025, including Bitcoin Layer 2 solutions and Aptos, underline Aave’s ongoing growth. At the time of writing, Aave’s total value locked (TVL) sits at just under $21 billion, as per data on DefiLlama.
DeFi tokens rallied after the U.S. election, with expectations of pro-crypto regulatory policies under the Trump administration. The total value locked across DeFi surged by 150% in 2024, reaching $130B, driven by innovations like liquid restaking protocols and Bitcoin DeFi products.
Read more: Donald Trump Backed WLFI Acquires $12 Million in Ethereum, Chainlink, and Aave
NFTs Stage a Comeback with $8.8B in 2024 Sales
Top NFT collections | Source: CoinGecko
NFTs achieved $8.8B in sales volume this year, surpassing 2023 by $100M. Ethereum and Bitcoin dominated the market, with each contributing $3.1B in sales. Solana followed closely with $1.4B. Despite a seven-month downturn earlier this year, NFTs demonstrated resilience, supported by growing interest in digital collectibles and metaverse integrations.
Read more: Top Solana NFT Projects to Watch
Celsius Appeals Court Ruling on $444M Claim
Celsius filed an appeal against a court decision disallowing its $444M claim against FTX. The original claim focused on preferential transfers and alleged disparaging statements by FTX officers. While Celsius has repaid over $2.5B to creditors, the outcome of this appeal could significantly impact its remaining liabilities.
Celsius’s CEL token briefly surged earlier this year but has since fallen back below $0.20, reflecting ongoing uncertainty surrounding its bankruptcy proceedings.
Conclusion
Today’s crypto updates highlight the market's complexity as 2024 ends and 2025 gets underway. Bitcoin faces resistance amid ETF outflows, Ethereum strengthens its institutional foothold, and Aave’s growth signals a DeFi renaissance. NFTs continue their recovery, while Celsius’s legal battles underscore the evolving regulatory challenges. The market remains dynamic, with potential catalysts on the horizon for 2025.
Read more: Top Crypto Milestones and Insights to Know in the 2024-25 Bitcoin Bull Run
