Market Update 2nd January 2025
By Shikha Singh
Bitcoin started the year with volatility, initially slipping back toward $93,000 after a drop from its all-time high of over $108,000 in mid-December. The price corrected by $16,000 within days, hitting $91,300 by December 30. However, Bitcoin found support at these levels, rebounding towards $95,000, briefly reaching $96,000, and then settling around $93,000 at the end of the year. Over the past 24 hours, Bitcoin has rebounded, climbing close to $96,000 again, with a market cap of $1.9 trillion and dominance dropping to 53.8% due to strong performances from altcoins.
Bitcoin’s network continues to show strength, as mining difficulty hit a new record of 109.78 trillion, climbing 1.16% in the latest adjustment. This marks a 24% increase over the past 90 days. Additionally, Bitcoin’s hash rate surpassed 800 EH/s for the first time, indicating robust network health.
Furthermore, Altcoins have seen significant gains recently, with Bitcoin’s rebound fueling the momentum. Among them, ai16z has attracted attention as it has soared by 35% in the past 24 hours, reaching an all-time high of $2.48. This surge has driven its market cap past the $2B mark, hitting $2.73 billion.
Whale accumulation has played a major role in ai16z’s price rally. Large institutional investors are increasingly buying the token, with notable transactions including a $3.95M withdrawal from Gate.io and large-scale purchases using SOL coins. This surge in whale interest has contributed to ai16z’s price increase from below $1 to over $2 in just a week.
Ripple has unlocked 500 million XRP tokens, valued at $1.1 billion, which has sparked excitement in the XRP community and contributed to an 11.22% price surge in the past 24 hours, pushing XRP to a daily high of $2.44. This move also increased XRP’s market cap to $135 billion. Ripple transferred the tokens from its “Ripple 25” wallet to its “Ripple 13” wallet, locking 500 million in escrow.
In December, U.S. spot Ethereum ETFs set a new record, with $2.08 billion in net inflows, nearly doubling November’s inflows of $1 billion. This surge highlights growing investor interest in ether-backed financial products. BlackRock’s ETHA fund led the charge, attracting $1.4 billion, including 13 consecutive days of positive contributions. Fidelity’s FETH followed with $752 million in inflows, while Grayscale’s ETHE saw $274 million in outflows. Cumulatively, ether ETFs reached over $2.6 billion in net inflows, with total assets of $12.12 billion, representing over 3% of Ethereum’s market cap.
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