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Bitcoin demand is rapidly outpacing supply, with apparent demand growing at a rate of 228,000 BTC monthly, while available inventory has dropped to levels not seen since October 2020. Accumulator addresses are increasing at a record rate, and OTC desk balances have declined significantly, indicating strong institutional interest. Sell-side liquidity has fallen to 3.397 million BTC, the lowest in over four years, further reducing potential selling pressure as the market cap of USD-based stablecoins surpasses $200 billion.
Bitcoin's price plummeted to $92,000, triggering $1.4 billion in liquidations, with altcoins like Ethereum and XRP suffering even greater losses. Spot Bitcoin ETFs experienced record outflows of $672 million, coinciding with a broader market downturn following comments from the Federal Reserve chair about interest rates. Despite the turmoil, some traders remain optimistic about future gains, citing potential support from a pro-crypto administration.
Cryptocurrency investment products recorded $3.2 billion in inflows during the week of Dec. 9–13, marking the 10th consecutive week of positive momentum, with total inflows for 2024 reaching $44.5 billion. Bitcoin products led with $2 billion, while Ethereum ETPs saw $1 billion, continuing a seven-week streak of inflows. The U.S. was the largest contributor, accounting for $3.1 billion, while Sweden experienced the only outflows at $19 million.
Ethereum is experiencing a significant surge in activity, with daily wallet creation hitting an 8-month high of 130,200 addresses in December 2024. Institutional interest is also rising, highlighted by BlackRock's Ethereum ETF attracting $3 billion in inflows, as Ethereum ETFs outpace Bitcoin counterparts with $854 million in recent inflows. Experts predict this momentum could drive Ethereum's price to $15,000 amid growing confidence in its market position.
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