Hong Kong is expediting its digital assets licensing, with authorities focusing on regulatory improvements and potential inclusion of Bitcoin in reserves, while South Korea's digital asset reforms are stalled due to martial law, delaying key initiatives like securities token offerings and real-name corporate accounts. The political crisis in South Korea has shifted attention away from virtual asset legislation, pushing timelines for reforms to 2025.
Dogecoin (DOGE) plummeted 12.4% to $0.31 amid a broader market decline following the Federal Reserve's hawkish outlook, with trading volume surging 67% to $10.25 billion. The meme coin is now down 35% from its 2024 high of $0.47, while its market cap remains at $46.6 billion. Other cryptocurrencies, including Ethereum and XRP, also faced significant losses, reflecting heightened sensitivity to macroeconomic signals.
The cryptocurrency market faced significant declines, with Bitcoin dropping below $96,000 for the first time in over a month, while Ethereum and Dogecoin also retreated sharply. Over $1 billion was liquidated in the last 24 hours, primarily from long positions, as market sentiment weakened. Analysts warn that if Bitcoin fails to hold the $96,000 support, it could fall further to $90,000 and $85,000, signaling a potential corrective phase.
Solv Protocol is set to launch its native token, SOLV, on the Hyperliquid blockchain, a layer-1 network focused on trading. The token listing was confirmed on December 19, with Solv securing its spot through a $130,000 auction process. Hyperliquid has amassed over $2.5 billion in total value locked and offers advanced trading options, including leveraged perpetual futures.
UBS strategists, led by Andrew Garthwaite, predict a potential S&P 500 surge amid bubble conditions, noting that while the index has risen 23% this year, a loose monetary policy is still absent. They identify six of seven bubble conditions met, with a federal funds rate of around 3.2% needed to trigger a shift of funds into stocks. UBS estimates a 35% chance of a bubble by 2025, suggesting a possible 20% increase in the S&P 500, and recommends investing in reasonably priced AI and electrification stocks like TSMC and Meta to hedge against risks.
UBS strategists, led by Andrew Garthwaite, predict a potential S&P 500 surge amid bubble conditions, noting that while the index has risen 23% this year, it hasn't yet entered a bubble due to restrictive monetary policy. They identify six of seven necessary bubble conditions, with the missing element being a looser monetary stance, suggesting a federal funds rate around 3.2% is needed. UBS estimates a 35% chance of a bubble by 2025, with the S&P 500 possibly surging by at least 20%, recommending investments in reasonably priced AI and electrification stocks like TSMC and Meta to hedge against risks.
The SEC has approved combined Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton, enhancing institutional access to these cryptocurrencies. The Hashdex Nasdaq Crypto Index US ETF and Franklin Templeton Crypto Index ETF received regulatory clearance, with the latter benefiting from an expedited review.Analysts suggest that upcoming leadership changes in Washington may have influenced these approvals, with a launch expected in January. Meanwhile, predictions indicate that Litecoin ETFs could be next, although demand among institutional investors remains uncertain.
Transrail Lighting's IPO, valued at Rs 839 crore, was fully subscribed by Day 2, with a listing set for December 27. Meanwhile, the stock market faced significant losses, with the SENSEX plunging over 900 points, driven by declines in IT stocks and profit booking in Mobikwik shares after a recent rally. Other IPOs, including Mamata Machinery and Concord Enviro Systems, showed strong subscription rates, reflecting robust investor interest.
As Wall Street's influence over Bitcoin increases, concerns about the cryptocurrency's decentralized nature intensify. BlackRock's recent video highlighted Bitcoin's 21 million supply cap but included a disclaimer suggesting potential changes, raising fears of manipulation. While Bitcoin ETFs may enhance accessibility and attract institutional capital, they also pose risks of centralization, challenging the community to uphold Bitcoin's core principles amidst growing financialization.
As the cryptocurrency market prepares for a potential bull run, Solana (SOL) and Ethereum (ETH) are attracting significant investor interest, alongside the emerging Lightchain AI (LCAI), which is seen as an undervalued alternative. Solana's speed and scalability, combined with Ethereum's foundational role in decentralized finance, position them for growth, with predictions for SOL reaching up to $600 and ETH potentially hitting $6,000 by 2025. Lightchain AI stands out with its innovative Proof of Intelligence consensus mechanism and AI-specific ecosystem, offering substantial growth potential, with analysts forecasting LCAI could rise to $5–$10 by 2025.
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