The last month in the cryptocurrency industry brought many important events that may have a long-term impact on the market. Sebastian Seliga from zondacrypto will tell you all about it.
Sharp declines in the cryptocurrency market
Just before the holidays, the cryptocurrency market experienced one of the largest declines in recent months, losing approximately $270 billion in capitalization. Bitcoin’s price dropped 14% from its peak in a matter of days, eventually stabilizing around $92,000, while ether lost as much as 25%, falling to $3,113 at the same time. These declines coincided with a general collapse in stock markets, which affected investor sentiment.
Experts indicate that the main factors were concerns about the global economic slowdown and the hawkish stance of the US Federal Reserve (Fed), which announced that it would maintain high interest rates in 2025. Additionally, the fear and greed index for cryptocurrencies indicated extreme levels of fear, which further deepened the sell-off.
The holiday week saw a solid upward rebound, with bitcoin even moving back above the $100,000 level and ether encountering resistance around the $3,500 level. Nevertheless, despite the significant rebound, bulls feel the bear’s breath on their backs.
Record bitcoin prices and future forecasts
Despite recent declines, bitcoin hit an all-time high this month, solidly surpassing $100,000. This growth was fueled by growing interest from institutional investors and the approval of spot bitcoin ETFs in the US. The cryptocurrency market capitalization has reached USD 3.7 trillion, which exceeds the GDP of the United Kingdom.
Analysts predict that Bitcoin could reach $112,000 by the end of December 2024, and some optimists even point to a potential increase to $150,000 in 2025.
MicroStrategy continues to purchase
MicroStrategy announced the purchase of an additional 15,400 BTC for approximately $1.5 billion. Thus, the company’s total resources now amount to 444,262 bitcoins, which constitutes over 2% of the total supply of this cryptocurrency.
Michael Saylor, founder of MicroStrategy, emphasized that bitcoin remains the company’s key reserve asset and that he believes current price levels represent an attractive investment opportunity. MicroStrategy’s actions are seen as a signal for other institutions to follow suit, further supporting bitcoin’s long-term value growth.
Market reaction to Fed policy
The decisions of the US Federal Reserve continue to have a significant impact on the cryptocurrency market. In recent days, the Fed has said that inflation will remain elevated in the coming years and that interest rates will be kept high. In response to this news, Bitcoin has depreciated by approximately 10% from its recent record highs.
Jerome Powell, Fed Chairman, when asked about the possibility of holding reserves in Bitcoin, replied:
We are not entitled to own Bitcoin and we do not seek to change the law in this regard.
Still, many analysts believe that Fed policy may favor cryptocurrencies as alternative reserve assets in the long run.
Tether invests in Web3
Tether, the issuer of the largest stablecoin USDT, announced its first investment in a venture capital fund. The company invested $2 million in Arcanum Emerging Technologies Fund II, which specializes in Web3 projects. This investment aims to support innovation in decentralized technologies and further development of the blockchain ecosystem.
Russia officially uses bitcoin in foreign trade
One of the most important events in recent days was the information that Russia began to officially use bitcoin and other cryptocurrencies in foreign trade. According to Russian Finance Minister Anton Siluanov, legislative changes introduced in 2024 will enable companies to use cryptocurrencies in international transactions.
This decision is a response to Western sanctions that have limited Russia’s access to traditional financial systems such as SWIFT. Bitcoin, as a decentralized currency, has become a tool for Russia to bypass these restrictions. Moreover, Russia is intensively developing the cryptocurrency mining sector, which allows it to use its own resources in international trade.
Siluanov emphasized that under the experimental legal regime, Russian companies are already carrying out transactions in Bitcoin, and the country plans to further develop digital payments in 2025. President Vladimir Putin added that cryptocurrencies such as bitcoin could be an alternative to the US dollar, whose status as a reserve currency has been undermined by the US’s political use of it.
News from the zondacrypto exchange
The zondacrypto exchange, one of the leading cryptocurrency platforms in Europe, has introduced several important changes and news this week.
Refreshed user interface
zondacrypto presented a new, more intuitive and transparent look of its platform. The changes are intended to improve the experience of users, both individual and corporate. The new interface has been designed to simplify the trading process and increase transparency.
Special Pool – Airdrops and Token Burn
The exchange announced the first results of its “Special Pool” program, which includes airdrops and token burning. The goal of this program is to increase the value of tokens and promote long-term holding of assets by investors. The first airdrops and token burnings were successful, which may have a positive impact on the ZND ecosystem.
Partnership with Atalanta
It is worth mentioning that as part of its strategy to increase global visibility, zondacrypto expanded its partnership with Atalanta in the second half of December. The collaboration with the Italian club aims to promote the adoption of cryptocurrencies around the world and build bridges between traditional finance and digital assets.
MiCA – preparation for new regulations
zondacrypto emphasizes its commitment to complying with MiCA (Markets in Crypto-Assets) regulations, which will fully enter into force in Europe in December 2024. The stock exchange is one of the few platforms in the EU that is fully prepared for the new regulations, which may attract a larger number of institutional investors. As one of the few exchanges, it conducts an extensive educational campaign addressed to everyone interested in new legal regulations regarding cryptocurrencies, such as the Travel Rule. Online meetings with cryptocurrency market experts are held regularly, where, in addition to the educational session, you can also ask your own questions.
Summary and forecasts
The last month has shown that the cryptocurrency market remains dynamic and challenging. Russia, by using bitcoin in foreign trade, is opening a new chapter in the global use of cryptocurrencies, which may influence their adoption in other countries. In turn, zondacrypto, thanks to its innovations and compliance with MiCA regulations, strengthens its leading position in Europe.
Despite short-term volatility, the long-term outlook for Bitcoin and the cryptocurrency market remains optimistic. Increased institutional interest, development of new projects and ongoing regulation may contribute to the further development of this sector in 2025.
You can buy Bitcoin and other cryptocurrencies in a simple and safe way on the zondacrypto exchange.
