On December 23, the cryptocurrency market continued to decline, and Bitcoin fell below the $95,000 mark, down about $13,000 from the historical high of $108,353 set on December 17. Since the presidential election on November 5, Bitcoin has risen over 40%. As of the time of writing,$Bitcoin (BTC.CC)$it fell 0.24% to $94,954.11; $Ethereum (ETH.CC)$it fell 0.07% to $3,279.47.

Key focus

• According to Bloomberg: Bitcoin has seen its first weekly decline since Trump's victory, with the options market starting to hedge downwards.

Bloomberg analyzed that due to the Federal Reserve's cautious policy outlook that has weakened the U.S. government's optimistic embrace of the cryptocurrency industry, Bitcoin has experienced its first weekly decline since Trump won the U.S. presidential election. This Monday, Bitcoin's seven-day decline reached about 7%, marking the largest drop since September.

Sean McNulty, the trading director of liquidity provider Arbelos Markets, stated that last week there was an outflow of funds from the US Exchange Traded Fund directly investing in Bitcoin, which will exert pressure on Bitcoin prices in the short term. He expects the BTC price to maintain around $0.09 million before the end of 2024 and added that the options market is beginning to attempt downside hedging, with options buyers setting execution prices of $75,000 to $80,000 for January, February, and March of next year.

• The chairman of MicroStrategy stated that Bitcoin's strategic reserves are expected to create $16 trillion to $81 trillion in wealth for the USA.

$MicroStrategy (MSTR.US)$ Founder and chairman Michael Saylor submitted a detailed digital assets framework to the US government last Friday, attempting to persuade the USA government to strengthen fiscal policies to make the USA the leader in the 21st-century digital financial system.

This complete proposal urges regulatory clarity, including defining the composition of digital assets, the rights and obligations of stakeholders, transparency, and initiatives to promote innovation. One of the key objectives of this so-called strategic digital asset policy is to create a Bitcoin reserve, which Saylor claims could generate $16 trillion to $81 trillion in wealth for the US Treasury, thus offsetting the soaring national debt.

• Trump's second son stated that Bitcoin will disrupt the traditional financial system and believes it will break through $2 million.

According to Bitcoin.com News, Trump's second son and executive vice president of the Trump Organization, Eric Trump, expressed a bullish outlook on the future of Bitcoin, believing it will disrupt the traditional financial system. He compared Bitcoin to "a speeding freight train," noting that when Bitcoin broke $0.1 million, it had already drawn widespread attention. He expects that when the price reaches $1 million, it will attract even more attention and believes that Bitcoin will ultimately break through $2 million. Eric Trump emphasized that the entire Cryptos industry is on the rise, and traditional banking has become outdated and problematic.

• Greeks.live: Funds are expected to be tight during the Christmas holiday, with strong risk aversion sentiment in the cryptos market.

Adam, a macro Analyst from Greeks.live, stated on platform X that this Wednesday is Christmas, and major Exchanges in Europe and the USA are closed. Usually, there is an Outflow of crypto funds during this week. Currently, the ETF is the main external source of funds for the crypto market, and the pressure from the Outflow on the crypto market is significantly higher compared to previous years, with intense risk-averse sentiment in the market.

Regarding the outlook for the crypto market, this bull market has not experienced a significant correction yet. With tight funds expected during the Christmas holiday, a deleveraging event before Trump's inauguration cannot be ruled out, and risk-averse sentiment is strong in the market. In the crypto interest rate market, there are nearly 12 billion dollars in Options expiring, accounting for over 40% of the current total Hold Positions. Large traders and market makers are actively adjusting their positions, and by paying attention to the markets, it is possible to occasionally find good opportunities. The expected volatility for Christmas week is not substantial, and the market is mainly betting on the trend around Trump's inauguration at the end of January, making it a good opportunity to Buy Options recently.

• Trump nominated "crypto supporter" Stephen Miran as chair of the White House Council of Economic Advisers.

Since Trump's election, he has repeatedly shown his determination to support Cryptos. Last Sunday local time, he nominated "crypto supporter" Stephen Miran for the next chair of the White House Council of Economic Advisers. However, Miran's appointment must also be approved by the USA Senate.

The council is a three-member panel that provides Trump with advice on domestic and international economic policies. Trump's appointment of Miran indicates that his second term will be more willing to integrate Cryptos into his broader economic vision.

• VanEck: Bitcoin reserve strategy could reduce USA debt by 35%, offsetting about 42 trillion dollars in liabilities.

Asset Management firm VanEck stated that if the USA establishes a reserve of 1 million Bitcoins according to the proposal by Senator Cynthia Lummis, the national debt could decrease by 35% over the next 24 years. VanEck's estimate assumes that Bitcoin will grow at a 25% compound annual growth rate (CAGR) to 42.3 million dollars by 2049, while the USA national debt will climb from 37 trillion dollars at the beginning of 2025 to 119.3 trillion dollars at the same time period at a 5% CAGR.

Matthew Sigel, head of digital asset research at VanEck, and investment analyst Nathan Frankovitz stated in a report on December 20: 'By 2049, this reserve could account for 35% of the national debt, offsetting approximately 42 trillion dollars in liabilities.'

• The mayor of Vancouver: Bitcoin is the best-performing asset of the past 16 years, surpassing Gold.

Ken Sim, the Mayor of Vancouver, Canada, stated in an interview with the Globe and Mail that Bitcoin is the best-performing asset over the past 16 years, even surpassing Gold. Sim pointed out that Bitcoin is not controlled by military power and emphasized that Bitcoin can position Vancouver as a world leader in Bitcoin innovation. Previously, it was reported that the Vancouver City Council passed a resolution to 'become a Bitcoin-friendly city and explore its possible municipal uses.'

• CryptoQuant founder: It is entirely possible to repay USA debt with BTC, the only risk is old whales selling off.

Ki Young Ju, the founder and CEO of CryptoQuant, posted on the X platform stating that if there is a consensus about the status of Bitcoin, it is completely possible to repay the USA debt using Bitcoin. The only risk is if old whales sell off their Bitcoin to attack the USA; however, if the USA government continues to accumulate Bitcoin until 2050 and its price continues to rise, it is doubtful that old whales would actually sell it.

• HKEX releases 2024 review: The first virtual asset spot ETFs in Asia are listed, launching a virtual asset index series.

HKEX releases 2024 review, regarding virtual assets, the Exchange-traded products (ETPs, including ETFs and leveraged and inverse products) market is increasingly growing, as of the end of November, the average daily trading volume reached 18.7 billion yuan, an increase of about 34% compared to the same period in 2023. In the year, Hong Kong's first covered call options ETFs and the first virtual asset spot ETFs in Asia were listed on HKEX, further enhancing the product diversity of the ETP market and improving market liquidity, leading to the listing of 36 new ETFs.

In addition, HKEX announced plans to digitalize and automate the physical subscription and redemption mechanism for ETPs to improve market efficiency and promote continued growth in its secondary market activities. Furthermore, HKEX launched the HKEX virtual asset index series, providing reliable benchmark prices for this rapidly emerging asset class, supporting Hong Kong's development as a leading digital asset center.

• The Financial Times of the United Kingdom: Crypto Funds like Brevan Howard and Galaxy Digital have annual returns far exceeding traditional funds.

According to the Financial Times of the United Kingdom, Trump's victory has driven a strong rebound in Bitcoin, leading some cryptocurrency hedge funds to "make a fortune." According to data provider Hedge Fund Research, in November, funds employing crypto strategies rose by 46%, achieving an annual ROI of 76%. These fund companies' returns far exceeded the industry average (10% in November).

Among them, Brevan Howard Asset Management and billionaire Mike Novogratz's cryptocurrency investment management company Galaxy Digital are the biggest winners in the recent crypto boom. Brevan Howard's crypto fund, with $35 billion in assets, has risen by 51% so far in 2024; Galaxy has risen by 90%, more than doubling its assets to $4.8 billion. However, up to now, both Brevan Howard Asset Management and Galaxy have declined to comment on the performance of their crypto funds.

• USA Senator Cynthia Lummis proposed allowing the Federal Reserve to hold Bitcoin.

US Senator Cynthia Lummis from Wyoming recently mentioned the possibility of converting Bitcoin into a reserve asset and proposed how to implement this plan, including the involvement of the Federal Reserve. Lummis stated that she wants to empower the Federal Reserve to buy and hold BTC as part of a larger strategic Bitcoin reserve plan to address the national debt issue. She wants to hand it over to them. She hopes our federal government will have a strategic Bitcoin reserve to help support the dollar as the world's reserve currency.

• The author of Rich Dad Poor Dad says that no matter how high the price of Bitcoin rises, it's never too late to start buying.

Robert Kiyosaki, the author of "Rich Dad Poor Dad", recently posted on X: "Question: Is it too late to start buying Bitcoin now? Answer: It is not too late. The brilliance of Bitcoin's design is that no matter how high its price rises, it's never too late to start buying. The idea behind Bitcoin’s design is to make everyone wealthy, even those who start later. Just don’t be too greedy."

• Crypto KOL: The current market correction is just a "bull market breather" rather than the "end of the bull market."

Crypto KOL and industry Analyst Lark Davis believes, based on historical data analysis, that the current correction in the crypto market is just a "bull market breather" rather than the "end of the bull market." He mentioned that Bitcoin dropped by 12% after a significant increase in December 2020 but rose by 136% in the following 23 days, and the current drop of around 13% has occurred after similarly strong performance in the fourth quarter.

However, Lark Davis pointed out that Bitcoin may still further correct 10-15%, but emphasized that Bitcoin and the broader Cryptos market still have enough momentum. Additionally, industry insiders believe that adjustments during the price discovery phase are both common and necessary, usually lasting several weeks, and bull market cycles can typically have up to four occurrences.

Futu News benefits are here! Welcome mooers to participate.Crypto limited-time rewards: Up to HK$100 Cash Coupon.>>

*This event is only for invited users in HK, click to learn moreEvent detailed rules >>

Editor/rice