| Reading time: 5 minutes | News | Crypto Converter | Crypto Calculators | Bitcoin eyes $120K in January backed by record Binance stablecoin reserves | | Key points: | Bitcoin is eyeing a potential rally to $120,000 in January, fueled by Binance's nearly $45 billion in stablecoin reserves. Key resistance levels at $95,000 and $96,400 must be breached, with market optimism driven by the upcoming U.S. presidential inauguration and ETF inflows.
| News - Bitcoin may be gearing up for a significant rally, with analysts projecting a peak at $120,000 during January 2025. This comes after the cryptocurrency experienced a 10% correction from its all-time high of $108,300 on December 17, 2024. | Ryan Lee, chief analyst at Bitget Research, attributed the bullish outlook to multiple factors, including President-elect Donald Trump's inauguration on January 20, 2025, growing investor confidence, and a potential "January effect." This phenomenon is characterized by renewed investments and optimism at the start of a new year, though profit-taking from 2024 gains may temper the rally. | BTC's performance will also be influenced by spot Bitcoin ETF inflows, the U.S. stock market's behavior, and scheduled FTX repayments on January 3. | Binance stablecoin reserves to drive BTC momentum - A key driver of Bitcoin's anticipated rally is Binance's record stablecoin reserves, which reached $44.5 billion as of December 31, nearing the all-time high of $45.8 billion recorded on December 11. Stablecoin reserves on exchanges often act as a precursor to buying pressure, signaling increased investor interest. | On December 11, Bitcoin saw a 4.7% intra-day gain, closing above $101,000, fueled by stablecoin inflows. Analysts suggest a similar pattern could emerge in January, with stablecoin reserves providing the liquidity needed for Bitcoin to push higher. | What's next? - To achieve its bullish target, Bitcoin must overcome significant resistance at $95,000 and $96,400. Breaking through $96,400 could liquidate over $1.24 billion in leveraged short positions across crypto exchanges, paving the way for further upward momentum. | While a rally to $120,000 seems plausible, analysts also caution about potential corrections driven by profit-taking. Beyond January, Bitcoin's trajectory remains optimistic, with projections of a climb to $160,000, supported by improving U.S. financial policies. | Ethereum poised to outperform Bitcoin in 2025: Steno Research | | Key points: | Ether (ETH) could surpass Bitcoin (BTC) in 2025, with predictions of at least $8,000, doubling its current price, according to Steno Research. Bitcoin dominance is expected to drop to 45% amid rising interest in altcoins, fueled by institutional adoption and higher total value locked (TVL) in decentralized applications.
| News - A new report from Steno Research forecasts that Ether (ETH) will outperform Bitcoin (BTC) in 2025, leveraging historical patterns and market dynamics. The analysis predicts that Bitcoin will rise to a minimum of $150,000 from its current level of around $94,000, while Ether could more than double to at least $8,000 from $3,400. | Steno's analysts expect the ETH/BTC ratio to increase to 0.06 over the next year, signaling Ether's comparative strength. The report also highlights the growing focus on altcoins as Bitcoin's market dominance is projected to fall from 56.6% to 45%. | Altcoin momentum in 2025 - The report credits several factors for the bullish outlook on Ether and altcoins: | Institutional adoption: Unprecedented institutional interest in cryptocurrencies is anticipated, driven by potential new cryptocurrency exchange-traded funds (ETFs) in the U.S. DeFi growth: Total value locked (TVL) in decentralized applications could hit a record $300 billion next year, further solidifying the case for higher altcoin prices. Favorable political climate: Donald Trump's presidency is perceived as more advantageous for altcoins than Bitcoin, according to Steno Research analyst Mads Eberhardt.
| What's next? - If these projections materialize, 2025 could mark a turning point for Ether and the broader altcoin market, setting the stage for significant institutional and retail adoption. However, the performance of Bitcoin will remain crucial as it continues to anchor the overall crypto market sentiment. | Cardano faces bearish sentiment as outflows hit 2-month high | | Key points: | Cardano's price drop to $0.84 signals intensified bearish pressure amid heightened outflows and waning network engagement. A recovery above $0.85 could open the path to $1.00, but persistent selling pressure risks driving the price toward $0.77.
| News - Cardano (ADA) has hit a multi-week low of $0.84 amid prolonged bearish sentiment and high outflows from its ecosystem. Investor skepticism continues to rise, with diminished network participation adding pressure to the asset's performance as 2025 approaches. | Market indicators reflect weakness - The Price DAA Divergence indicator has signaled a sell trend for ADA, correlating its price drop with declining active user engagement. This pattern underlines growing investor skepticism regarding ADA's recovery potential, with participation metrics showing reduced interest in the network. | Adding to the bearish narrative, the Chaikin Money Flow (CMF) has reached a two-and-a-half-month low. This suggests that outflows dominate Cardano's market activity, reflecting a dearth of fresh investments. The prolonged negative CMF signals weak momentum and waning investor confidence. | Price forecast: Challenges ahead - Cardano's failure to hold above the $0.85 support level has exacerbated its bearish position. If the ongoing trend persists, ADA risks a further slide to $0.77, compounding market challenges and discouraging new capital inflows. | On the other hand, successfully reclaiming $0.85 as support could offer a glimmer of hope. Stabilizing above this level may set ADA on a recovery path toward $1.00, contingent on improving market sentiment and a reversal of capital outflows. | As ADA struggles with these headwinds, its next moves remain critical to shaping investor confidence and determining its trajectory in early 2025. | NFTs end 2024 strong with $8.8B sales volume, Ethereum and Bitcoin lead | | Key points: | NFT sales hit $8.83 billion in 2024, a 1.1% increase compared to 2023, driven by a strong fourth quarter and December's $877 million sales volume. Ethereum and Bitcoin recorded $3.1 billion each in NFT sales, with Solana taking the third spot at $1.4 billion for the year.
| News - Non-fungible tokens (NFTs) capped 2024 on a high note, with total annual sales reaching $8.83 billion, a slight year-on-year increase from $8.7 billion in 2023, according to data from CryptoSlam. While this year's performance still lagged behind the peak years of 2021 and 2022, it marked a steady recovery, especially during the final quarter. | Q4 sales momentum reverses a downtrend - NFT sales faced a prolonged seven-month downturn earlier in the year, with September recording the lowest monthly sales since 2021. However, the market rebounded sharply in the fourth quarter, starting with a modest 18% rise in October sales to $353 million. | November witnessed a significant boost, with sales climbing to $562 million, a six-month high. December maintained the momentum, achieving $877 million in sales — the fifth-highest monthly total for the year. | Notably, Ethereum-based NFTs led December's resurgence, generating $482 million in sales. Bitcoin-based collections followed with $172 million, while Solana contributed $100 million. Popular collections like Pudgy Penguins topped the charts with $115 million, alongside significant contributions from Azuki, CryptoPunks, and Bored Ape Yacht Club. | Ethereum and Bitcoin dominate annual sales - In 2024, Ethereum and Bitcoin NFTs emerged as leaders, each recording $3.1 billion in sales. Solana ranked third with $1.4 billion, continuing its presence as a key player in the NFT space. | Looking ahead: Optimism for future growth - Despite lower sales volumes compared to the highs of 2021 and 2022, industry leaders like Animoca Brands chairman Yat Siu remain optimistic. Siu predicts that NFT trading volumes could surpass billions monthly as broader crypto adoption accelerates, suggesting brighter prospects for the NFT market in the coming years. | NFTs now face 2025 with renewed momentum and expectations of continued growth driven by innovation and expanding Web3 adoption. | | More stories from the crypto ecosystem | | Interesting facts | In 2017, Vitalik Buterin burned 500 ETH (worth approximately $8-10 million at the time) by sending it to an inaccessible address. This symbolic gesture was intended to support the ongoing development and sustainability of the Ethereum network. In 2018, West Virginia launched a blockchain-based voting pilot program for military personnel deployed overseas to vote securely using the Voatz app. The pilot continued in 2020 for the general election, but faced significant scrutiny and concerns about security and the reliability of the technology. In 2020, a crypto project called Yearn Finance made headlines by launching its governance token, YFI, which was initially distributed for free to users and didn't have a pre-sale or ICO. Despite starting with no initial value, YFI skyrocketed in price, briefly surpassing the value of Bitcoin in terms of market capitalization per coin, making it one of the most remarkable DeFi success stories.
| | Top 3 coins of the day | Pepe (PEPE) | | Key points: | At press time, PEPE was trading at $0.00002019, reflecting an 8.59% increase over the last 24 hours. It was one of the top gainers and trending cryptocurrencies according to CoinMarketCap.
| What you should know: | The daily chart for PEPE indicated a bullish trend. The Parabolic SAR dots were positioned below the price action, signaling upward momentum. Moreover, the Relative Strength Index (RSI) was at 52.12, suggesting neutral conditions, indicating neither overbought nor oversold status. Trading volume also increased, supporting the recent price surge and indicating heightened market interest. Immediate support is identified around $0.00001800, while resistance is near $0.00002200. A break above the resistance could lead to further gains, while a drop below the support may indicate a potential reversal. | Fantom (FTM) | | Key points: | At press time, FTM was trading at $0.72, reflecting a 0.01% decrease over the last 24 hours. It was the biggest loser according to CoinMarketCap.
| What you should know: | On the daily time frame, the Bollinger Bands indicator highlighted significant bearish momentum for FTM. The price was trading near the lower band, suggesting heightened selling pressure. This bearish bias was further supported by the Directional Movement Index (DMI), where the -DI line was positioned above the +DI line, and the ADX reflected strong trend intensity. Additionally, volume saw a notable uptick over the past few days, indicating active participation during the downtrend. If selling persists, the price could test support at $0.65. Conversely, sustained buying might push FTM toward its immediate resistance at $0.80. | XRP (XRP) | | Key points: | At press time, XRP was trading at $2.08, reflecting a 1.32% increase over the last 24 hours. It was one of the top trending cryptocurrencies according to CoinMarketCap.
| What you should know: | XRP experienced a slight upward movement, with a 1.32% increase over the past day, as it continued to consolidate below the $2.10 mark. The SMA 9 line suggested that the short-term trend was still in favor of bearish momentum as the price lingered below the moving average. The Awesome Oscillator reflected decreasing bullish momentum, as indicated by the series of fading green bars over the last few sessions. Meanwhile, trading volume was moderate, showing a lack of significant buyer activity to push the price higher. The overall sentiment appears neutral to slightly bearish, requiring a substantial catalyst to break out of the consolidation phase. Immediate support could be found at $2.01, with resistance around $2.10. A sustained move above the resistance could signal further gains, while a drop below the support may indicate a possible reversal. | How was today's newsletter? | |
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