US Spot Bitcoin ETFs Hit Record $1.2 Billion Outflow Streak
US-based spot Bitcoin ETFs have seen a significant outflow totaling $1.2 billion in three days, the longest streak since Donald Trump was re-elected in 2020. This wiped out a large portion of the inflow gains made in early December, reducing the funds’ total value by $10.7 billion. Fidelity’s FBTC led the way with $426 million in outflows, while BlackRock’s IBIT was relatively stable. In contrast, Ethereum ETFs remained relatively stable with small net outflows of $5 million, while their total value fell by $1.1 billion. However, both Bitcoin and Ethereum prices rose by around 6% and 5% respectively on Tuesday.
Hyperliquid Sees Record Fund Outflow on North Korea Hack Allegations
Decentralized trading platform Hyperliquid saw record net outflows of $250 million on Monday and $22.2 million on Tuesday after a Metamask researcher claimed that North Korea-backed hackers were active on the platform. The researcher identified 12 blockchain addresses with DPRK ties, highlighting the potential risk of an attack. Despite the allegations, Hyperliquid said all funds were safe and there were no vulnerabilities or security breaches. The platform’s native token, Hype, fell from $34.5 to $26 before recovering slightly to $29.63. Hyperliquid denied the rumors, emphasizing its commitment to operational security.
MicroStrategy Calls for Shareholder Meeting to Purchase Bitcoin
MicroStrategy announced that it will hold a special shareholder meeting to expand its stock issuance plan as part of its ambitious 21/21 Plan, which aims to purchase $42 billion worth of Bitcoin over three years. The offering includes increasing the number of Class A shares authorized for future stock sales and financing flexibility to 10.33 billion shares and the number of preferred shares to more than 1 billion. The company purchased 42,162 BTC in December, bringing its total assets to approximately 444,262 BTC (worth $43.53 billion). Since the implementation of the plan, MicroStrategy has raised $13 billion in stock issuances and $3 billion in convertible notes. Thanks to its Bitcoin strategy, the company’s stock has gained more than 422% since the beginning of the year.
Bitcoin Miners Face Challenges Despite Rising in 2024
Bitcoin gained 130% in 2024, reaching $98,600 by the end of the year. However, most publicly traded Bitcoin mining companies ended the year with losses due to rising costs, mining difficulty, and halving-related revenue declines. According to the reports, only 7 out of 25 mining companies saw positive returns. Core Scientific gained 327%, TeraWulf gained 169%, and Hut 8 gained 91%. However, Argo Blockchain lost 84% and Greenidge lost 74%, while Bitfarms fell 44% and MARA Holdings fell 12%. The halving in April 2024 halved block rewards, cutting miners’ daily income from $100 million in April to $42 million in December. In addition, mining difficulty increased by 50.7%, while the cost of producing one Bitcoin increased by 13%, reaching an average of $55,950.
Russia Bans Crypto Mining
Russia has announced that it will ban crypto mining in certain regions starting January 1, 2025, in an effort to address energy imbalances and electricity subsidy issues. The ban will last until March 15, 2031, and will be applied primarily during the winter months when energy consumption peaks. The affected regions include Dagestan, Ingushetia, Chechnya, and the Donetsk and Luhansk People’s Republics. Mining activities in these regions will be suspended on the grounds that they cause electricity imbalances. In addition, seasonal restrictions will be introduced in Irkutsk, Buryatia and the Trans-Baikal Regions.
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BITCOIN (BTC)
BTC is priced at $ 98,202 as of the morning hours, down 0.40%. The price in the BTC/USDT pair is trying to recover after the decline that started at 108,000 and is currently trading at 98,237 levels. The price seems to have received an upward reaction from the green demand zone between 94,500 and 96,000. This area stands out as a region where buyers step in and the price finds support. If the recovery continues, the price can be expected to target 100,000 in the first place. If this level is breached, the next target should be the 102,000 – 104,000 resistance zone. However, selling pressure may increase again in this zone. In particular, there is strong resistance at the 104,000 level. In a downside scenario, the price can be expected to fall back to the 96,000 – 94,500 support zone. If this zone is breached, the price is likely to fall to the 92,290 and then 90,757 levels. These levels are support areas where strong buyers previously stepped in.
ETHEREUM (ETH)
ETH is priced at $ 3491 with a 0.06% gain as of the morning hours. The ETH price is showing signs of recovery after the recent downward movement and is currently trading at 3,491. The price seems to have received an upward reaction from the 3,445 – 3,344 support area. This area draws attention as an area where buyers are concentrated. The price action is in a recovery trend towards the 3,613 – 3,640 levels. These levels stand out as an important resistance area and must be overcome for an upward movement to continue. If the price overcomes these levels, the next target can be watched as 3,829. However, selling pressure is likely to increase again at this level. In a downward scenario, the price can be expected to pull back to the 3,445 – 3,344 support area. If this zone is broken, the price is likely to drop to 3.285 and lower support levels.
RIPPLE (XRP)
XRP is traded at $ 2.3035 with a loss of 0.90% as of the morning hours. The $ 2.2305 level appears as an important support zone. In a possible negative movement, candle closings below this level may cause the price to decline to the $2.1615 and $2.0741 levels, respectively. In a deeper selling pressure, the $1.9580 level may be considered a strong support point for buyers. In upward movements, if the price holds above the $2.2305 level, it may support a recovery towards the $2.3645 and $2.4935 resistance levels, respectively. It is important for traders to follow critical support and resistance levels and evaluate volume and momentum indicators.
AVALANCHE (AVAX)
AVAX is priced at $ 41.30 as of the morning hours with a 0.24% increase in value. Closing yesterday with a 5.47% increase, AVAX started the new day positively and is moving closer to the resistance zone of $ 42.50. If the positive trend continues, it will be important for it to first exceed the $ 42.50 – $ 44 band resistance zone. Then, the $ 45.08 and $ 48.08 levels appear as the next resistance levels to be broken. In a possible negative movement, the first support level is $ 40.18. If this level is broken and candles close below it, the levels of $ 37.29, $ 36.40 and $ 35.55 can be met as support zones with intense buyers, respectively. It will be important for investors to carefully monitor the identified critical support and resistance levels.
SOLANA (SOL)
SOL is priced at $ 199 levels with a 1.19% gain as of the morning hours. Closing yesterday with a 3.67% increase, SOL seems to have started the new day positively. Testing the $ 200 resistance level in the morning hours but unable to maintain permanence above it, SOL is testing this resistance level again. Breaking the $ 200 resistance and maintaining permanence above it will be critical for the positive trend to continue. Then, the $205 – $208.55 band and $214.72 levels can be met as the next resistance levels. In a possible negative trend, $191.26 and $183.60 are critical support levels, while in faster selling pressures, the $177.10 – $173 band appears as the support zone where buyers are concentrated. It will be important for investors to carefully monitor the identified critical support and resistance levels.
