Bitcoin Price: US$ 91,957.40 (-1.24%)
Ethereum Price: US$ 3,324.73 (-2.63%)
Jim Cramer, a CNBC commentator, suggested that cryptocurrencies, including Bitcoin and Ethereum, should have a place in every investor’s portfolio, particularly as a hedge against rising U.S. debt, despite his controversial track record on investment advice. His endorsement led to a 2% drop in Bitcoin’s price, which some sceptics attributed to the “inverse Cramer” effect. However, Bitcoin’s current valuation metrics indicate that the bull market is far from over, with institutional investors leading the accumulation phase, even as retail activity remains lower than in previous cycles. Although Bitcoin’s price reached a peak of $99,571, it has yet to break the $100,000 resistance level, and analysts predict a potential 30% correction before it enters six-figure territory. Meanwhile, Avidan Abitbol, a Web3 executive, highlighted that institutions are reluctant to adopt Web3 technologies due to the risks posed by blockchain’s transparency, which exposes them to theft and market manipulation. Privacy solutions like zero-knowledge technology and private transaction features offered by providers like Chainlink are seen as crucial to encouraging institutional adoption, with some banks already experimenting with these privacy-enhancing tools.
November saw a surge in stablecoin trading, with volumes reaching $1.81 trillion, a 77.5% increase from the previous month, driven by institutional confidence. Tether’s USDt continued to dominate the market, while Ethena Labs’ USDe experienced significant growth, although other stablecoins like FDUSD and USDS faced declines. In Vancouver, Mayor Ken Sim announced plans to make the city a “Bitcoin-friendly” hub by adding Bitcoin to its balance sheet as a reserve asset, a proposal that aligns with similar moves in the U.S. but remains uncertain due to council support. Meanwhile, Tether revealed it would discontinue its euro-pegged EURt stablecoin, citing evolving European regulatory frameworks and declining interest in the asset. EURt holders are encouraged to redeem their holdings by November 2025, as Tether shifts focus to supporting MiCA-compliant stablecoins, like EURq and USDq, through new initiatives.
The global money supply’s expansion and potential US dollar weakness could set the stage for a Bitcoin bull run in 2025, with projections placing Bitcoin’s price above $132,000. Analysts like Jamie Coutts highlight the correlation between Bitcoin and the M2 money supply, which has been increasing, fuelling investor interest in inflation hedges like Bitcoin. Additionally, a liquidity injection from the US Federal Reserve is expected to drive the global money supply to over $127 trillion, supporting Bitcoin’s growth. Bitcoin also benefits from rising adoption, seen in record hardware wallet sales and a significant drop in Bitcoin reserves on exchanges, reflecting growing interest in self-custody and regulatory clarity. This shift is particularly notable after Donald Trump’s presidential victory, which is expected to foster a more supportive environment for cryptocurrencies. Bitcoin’s fourth halving in 2024 and an improving macroeconomic climate further contribute to the ongoing rally, with these factors combined suggesting that Bitcoin could continue its upward trajectory. A significant legal victory for Tornado Cash users, where a US appeals court ruled that the Treasury exceeded its authority by sanctioning Tornado Cash’s smart contracts, signals a more favourable regulatory outlook for the crypto industry, boosting market sentiment.
Source: https://cointelegraph.com
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