1. Citigroup Predicts 2025 Will Be the Year of Altcoins
Citigroup analysts recently highlighted Ethereum as a prime rotation target, being the only major cryptocurrency—besides Bitcoin—approved as the underlying asset for a spot ETF. However, other altcoins have outperformed, gaining market share. A Citigroup survey revealed that respondents expect altcoins to shine in 2025, signaling a potential "altcoin season" post-Bitcoin’s strong performance.
Key Drivers for Altcoin Growth:
- Policy Support: Clearer regulations could legitimize altcoins, boosting prices.
- Investment Limitations: Unlike Bitcoin, altcoins lack traditional financial instruments (e.g., ETFs), leaving room for growth.
- Market Sentiment: Investors anticipate diversification into smaller-cap tokens.
👉 Discover how altcoins are reshaping crypto portfolios
2. Bitcoin Analysis: Short-Term Holder Cost Basis at $88K Remains Critical Support
Glassnode data shows Bitcoin’s short-term holder cost basis ($88K) as a pivotal support level. The Unrealized Price Distribution (URPD) metric indicates:
- A drop below $88K could trigger accelerated selling due to sparse buy-side liquidity.
- Current demand momentum has weakened, with "hot capital" (recently active funds) plummeting 66.7% from December’s peak ($962B → $320B).
3. Financial Advisors Double Crypto Allocations in 2024
A Bitwise/VettaFi survey found that 22% of financial advisors now allocate crypto to client portfolios—up from 11% in 2023. Key factors driving adoption:
- Bitcoin’s 123% surge to $108K, fueled by spot ETF inflows ($35B+).
- Election Impact: 56% of advisors say the 2024 U.S. election makes them more likely to invest in crypto, anticipating GOP-led pro-crypto policies.
4. Crypto Industry Lobbies Trump Ahead of Inauguration
With Trump’s inauguration approaching, crypto CEOs (e.g., Coinbase’s Brian Armstrong, Crypto.com’s Kris Marszalek) are vying for seats on a planned crypto advisory committee. Goals include shaping digital asset policies and securing regulatory clarity.
Notable Developments:
- Industry-funded inauguration events, including a crypto-themed ball.
- Firms like Circle and Kraken pledged donations to Trump’s campaign.
5. Hong Kong Advances Distributed Ledger Technology (DLT)
The HK Monetary Authority launched a DLT Regulatory Incubator to help banks:
- Manage risks in DLT-integrated services (e.g., loans/deposits).
- Conduct real-world testing and adopt best practices.
6. Tether’s AI Strategy: Focus on Privacy and Decentralization
CEO Paolo Ardoino announced Tether’s AI roadmap, emphasizing:
- Open-source, peer-to-peer technologies.
- Privacy protection in AI, robotics, and brain-computer interfaces.
7. Theta’s 2025 Roadmap: AI Agents and EdgeCloud Expansion
Theta plans to:
- Launch AI Agents beta for autonomous blockchain interactions.
- Deploy EdgeCloud hybrid architecture (Linux/Windows/Mac support).
- Partner with sports/esports teams for AI-driven subchains.
8. VanEck: Block Could Be First S&P 500 Company to Hold Bitcoin
VanEck’s Matthew Sigel notes Block meets S&P 500 criteria, potentially pioneering corporate Bitcoin holdings.
9. Aiccelerate DAO Bridges Crypto and AI
Backed by Coinbase, Google, and a16z alumni, Aiccelerate DAO will:
- Fund decentralized AI projects.
- Issue AICC tokens for ecosystem growth.
👉 Explore AI-crypto convergence with Aiccelerate
10. Global Debt and Crypto Risks
Ex-PBOC Governor Zhou Xiaochuan warned:
- $100T global debt threatens emerging markets.
- Crypto assets pose financial stability risks if unregulated.
11. U.S. Government’s Bitcoin Sale: Market Impact
CryptoQuant CEO Ki Young Ju downplays concerns:
- **$6.5B Bitcoin sale** could be absorbed within a week ($10B/day inflows in 2024).
- U.S. entities now hold 65% more Bitcoin than non-U.S. counterparts.
Arthur Hayes quipped: "Diamond hands are ready to buy the dip."
FAQ
Q: Will altcoins outperform Bitcoin in 2025?
A: Citigroup’s survey suggests strong altcoin potential, but Bitcoin’s ETF dominance remains a factor.
Q: How critical is the $88K Bitcoin support level?
A: Glassnode warns breaking it may trigger a downtrend due to weak buy-side liquidity.
Q: What’s driving financial advisors to adopt crypto?
A: Bitcoin’s ETF success and election-related policy optimism.
Q: Is the U.S. government’s Bitcoin sale a market risk?
A: Analysts argue current demand can absorb the $6.5B sell-off.
Disclaimer: This content is for informational purposes only and does not constitute financial advice.