DigitalX Weekly Crypto Update: Market Trends and Analysis

Market Commentary

After the Bitcoin price registered an all-time high above US $106,000, it has slipped to around US $101,000 on the U.S. Federal Reserve’s hawkish tone during a recent press conference. Despite the third consecutive easing move to cut rates to the 4.25-4.50% range, Jerome Powell is projecting a slower path of further rate cuts to reflect hotter inflation readings in previous months and higher inflation expectations for the next year. On December 16, US spot and derivative Bitcoin ETFs collectively broke $129 billion in net assets, surpassing gold ETFs for the first time. 

Australia’s AMP becomes the first superannuation fund to invest in Bitcoin. The fund has roughly $57 billion in assets under management, with the $27M Bitcoin allocation totally to a fairly conservative 0.05% of the fund’s total assets under management. On the contrary, the world’s largest asset manager – BlackRock – recommended allocating up to 2% of some investors’ portfolios to Bitcoin in a report released Thursday.

Ripple’s RLUSD stablecoin makes debut on crypto exchanges. Starting 17 December, RLUSD is initially available on crypto exchanges including Uphold, Bitso, Moonpay, Archax and CoinMENA. It plans to use RLUSD to support global payments for its enterprise customers, in addition to Ripple adding two financial experts to the stablecoin’s advisory board. Ripple CEO Brad Garlinghouse sees this as a reflection of the U.S. moving towards clearer regulation, with RLUSD “offering real utility, backed by years of trust and expertise in the industry”.

CRYPTO TOP 20 7 DAY PRICE CHANGE

*All figures throughout are in USD unless otherwise specified

Market Updates

• Bitcoin price registered a fresh all-time high above $106,000
• Bitcoin ETFs flip gold funds in AUM: K33 Research
• MicroStrategy boosts Bitcoin holdings to 439,000 BTC following Nasdaq 100 inclusion
• Avalanche raises $250M amid major overhaul of layer-1 blockchain
• Polygon rejects proposal to use over $1 billion of bridge stablecoins for yield generation
• Bitvavo is once again the largest EUR-spot exchange worldwide
• Riot Platforms increases its Bitcoin holdings by over 5,000 BTC
• Metaplanet tips first operating profit in 7 years, boosted by Bitcoin
• Grayscale launches Lido DAO and Optimism Trusts to expand Ethereum investment offerings
• Frax is developing a tech stack for AI agents on blockchain
• Galaxy Digital hires veteran hedge fund executive as new CFO
• Hyperliquid sees over $1 billion USDC net inflows since token launch
• Anchorage Digital secures BitLicense in New York, expanding crypto services to large institutions
• El Salvador grants Bitget license for Bitcoin services
• Kraken and BitGo will help distribute the first FTX payments in 2025
• Aave DAO considers exiting Polygon after proposed bridge
• Bitpanda receives in-principle approval for UAE expansion
• Revolut to strengthen crypto fraud protections with added security, risk scores
• Ethereum’s ENS identity system picks Consensys’ tech for its layer-2
• Omni Network launches ‘Core’ mainnet to unify Ethereum’s fragmented rollup ecosystem
• Lido to discontinue services on Polygon in coming months after low adoption
• Team behind blockchain-powered AI16z bot partners with Stanford to study autonomous crypto-AI agents
• Tether’s USDT trading continues across Europe despite Coinbase delisting
• NFTs are making a comeback as trading volumes surge: Galaxy Research
• WazirX’s WRX plunges 60% after Binance delisting, dampening hopes of a ‘fresh start’
• Solana smashes record with 66.9M daily transactions as Pengu token debuts
• Kraken’s Ink layer-2 goes live
• Deutsche Bank’s L2 blockchain to be ‘public and permissioned’, says tech partner
• Synthetix launches multi-collateral perps on Base amid revamp
• Ethena Labs partners with Trump’s World Liberty Financial

The Next Wave

• BlackRock recommends Bitcoin allocation of up to 2% in multi-asset portfolios
• Australia’s AMP Fund invests $27M in Bitcoin: Report
• MicroStrategy to join Nasdaq 100, QQQ ETF following 500% rally this year
• Vancouver passes motion to become a ‘Bitcoin-friendly city’
• Alabama should establish Bitcoin reserve, says state auditor
• Ohio lawmaker proposes bill to create a state-backed Bitcoin reserve
• Bloomberg analysts expect a ‘wave of cryptocurrency ETFs’ next year, including Solana and XRP funds
• Bitwise launches Solana staking ETP in Europe as US applications linger
• Custody firm Taurus partners with Temenos bringing crypto wallets to thousands of banks

Tinkering with Tokenisation

• Ethena rolls out stablecoin backed by BlackRock’s BUIDL token
• Ripple’s RLUSD stablecoin makes debut on crypto exchanges
• Michael Sonnenshein, ex-Grayscale CEO, joins tokenisation firm Securitize as COO
• Societe Generale conducts blockchain-based repo transaction with French central bank
• Sui blockchain partners with Ant Digital on tokenised ESG assets
• NY Fed’s Michelle Neal appointed CEO of Fnality DLT payment system
• MUFG backed Progmat explores tokenising foreign real estate
• AI firm G42 invests in tokenisation data platform Inveniam
• UK’s first Digital Securities Sandbox participants get preliminary approval
• Tether invests in MiCA-compliant stablecoin issuer StabIR
• Stablecoin payments platform BVNK raises $50M to fuel U.S. expansion
• Remote, Stripe enable USDC payments for global contractors
• RWA-focused network Plume raises $20M from Brevan Howard and others ahead of mainnet launch
• SIX, SBI-backed AsiaNext lists digital MMF, launches novel digital collateral solution

Macro and Regulatory Environment

• US makes third interest rate cut despite inflation risk
• Trump-crypto CEO meeting about appointments, BTC reserve
• Next U.S. Senate Banking chair calls crypto ‘next wonder’ of world
• Texas lawmaker introduces bill for strategic Bitcoin reserve, aligning with Trump’s crypto agenda
• Incoming committee chair Rep. French Hill plans to prioritise digital asset legislation in the new year
• ‘No to CBDC, yes to Bitcoin’ – European MP calls for EU BTC reserve
• ESMA publishes final guidance on MiCA implementation days before deadline
• Senate Banking Committee cancels confirmation vote for SEC’s Caroline Crenshaw
• Coinbase faces $1B lawsuit over wbTC delisting
• First criminal crypto tax evader in US sentenced to two years in prison
• Ukraine bill seeks to legalise crypto by early 2025 with securities-based taxation model: report
• Kraken exchange operator fined $5 million in Australia for compliance failure
• Thailand should study crypto to remain relevant – former Thailand PM
• Bank of England watchdog asks firms to disclose crypto exposure
• Australia proposes stricter crypto rules to curb financial crime
• UK set to prohibit public offers of crypto
• SEC approves crypto wallet maker Exodus to list on NYSE American after denying it in May
• FCA releases discussion paper on crypto market transparency, abuse
• British Columbia maintains Bitcoin mining ban despite Vancouver’s ‘BTC-friendly city’ motion
• Nigeria arrests almost 800 over crypto scams: Reuters
• US Treasury and UAE target North Korean digital asset launderers
• Binance Australia sued over alleged consumer protection breaches

About DigitalX

DigitalX Ltd (ASX:DCC) is a leading ASX-Listed Bitcoin and digital asset funds management business. The Company has a 9 year track record mining Bitcoin, blockchain and smart contract development. DigitalX Asset Management is the investment manager of digital asset investment products that provide qualified investors with highly secure and streamlined access to digital asset exposure. To learn more contact the team at [email protected] or visit our website https://digitalx.fund/.

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The information in this document is prepared by DigitalX Asset Management Pty Ltd (ACN 629 653 121) (DigitalX).

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