Bitcoin ETFs outperform gold ETFs
The launch of Bitcoin ETFs turned out to be the best thing that ever happened to the crypto market. A report from K33 Research reveals that US-listed Bitcoin ETFs have surpassed US-listed gold ETFs in terms of assets under management (AUM), including leveraged products such as Futures ETF. Since its launch in January, Bitcoin ETFs have recorded more than $129.25 billion in assets under management, outpacing the assets under management of gold ETFs at $128.88 billion that have been trading for over 20 years. This figure shows the resilience of Bitcoin with the huge buying interest from institutional investors. Comparing exclusively in spot products, gold remains slightly ahead, but the gap is closing soon and Bitcoin ETFs could also outperform gold ETFs only in spot ETFs in the coming weeks.
On the other hand, Blackrock, the world’s largest asset manager, with over $11.5 trillion under management, suggested a 2% portfolio allocation to portfolios, thereby increasing the confidence of retail and institutional investors in the crypto market.
Cryptocurrency tracker
Ohio State Bitcoin Reserve Law
Ohio state lawmakers have passed a bill to create a Bitcoin fund in the state treasury, becoming the third US state to do so in just over a month. Republican leader Derek Merrin introduced the bill titled “The Ohio Bitcoin Reserve Act” that would give the state treasurer the authority to purchase Bitcoin as part of a “proper asset allocation.” The move shows the Trump administration’s commitment to creating a national strategic Bitcoin reserve that could potentially make the United States the largest holder of Bitcoin, already owning approximately 207,189 Bitcoins to date.
On top of that, the news that Trump would sign an executive order to establish the Bitcoin reserve on his first day in office increased the bullish sentiment in the crypto community.
Fed rate cut and comments, its impact
One of the major events of the week that changed the direction of the market was the Fed meeting. While the Fed cut the interest rate by an expected 25 basis points, it also adjusted its rate cut outlook for 2025 from three to two. A weak inflation forecast from the largest economy has led to a massive sell-off across all global markets, including crypto markets. The US stock market saw a sell-off of over $1.5 trillion, while Indian markets also fell by over 4.5%. On a related note, even the crypto market saw a liquidation of over $1 billion, pushing the price of Bitcoin down by 5.5%. Further increasing selling pressure was Federal Reserve Chairman Jerome Powell’s hawkish remarks on the Federal Reserve’s stance against Bitcoin ownership.
Launch of Ripple’s stablecoin
Ripple announced the launch of its stablecoin RLUSD a few days ago and former RBI Governor Raghuram Rajan joined Ripple to guide the growth of RLUSD. This development has generated a lot of interest from the Indian crypto community, thereby boosting confidence in the market. Along with Rajan, Kenneth Montgomery, former senior vice president and chief operating officer of the Federal Reserve Bank of Boston, joined the board. These appointments not only contribute to Ripple’s growth but also make the markets more reliable with key individuals from strong banking backgrounds joining the crypto ecosystem.
Markets move forward
As we approach the last week of the year, we could see some volatility given that we are in a cooling-off period between bull runs. The market needs to build some momentum for a possible rally after Trump takes office. Such periods of reflection are crucial during a prolonged bull market like the one we are currently experiencing. Added to this is the liquidation of institutions at Christmas before the New Year. Bitcoin could test key support levels before rebounding. Although such periods provide investors with attractive entry points and dollar cost averaging, traders are advised to maintain a strict stop loss to minimize risks.
Top 3 crypto winners of the week:
1) Pudgy Penguins are up 380.2%
2) Hyperliquid is up 32.76%
3) BitGet token is up 20.69%
Top 3 losers in crypto this week:
1) Gala is down 39.25%
2) Celestia is down 36.99%
3) The Sandbox is down 35.7%
(The author is CEO and co-founder of Mudrex, a global crypto investment platform)
