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In 2024, while Bitcoin's price surge grabbed headlines, the financial sector's attention was increasingly drawn to stablecoins, cryptocurrencies designed to maintain a stable value, typically pegged to the US dollar. Companies like Visa, PayPal, Stripe, and Revolut are investing in or launching their own stablecoin projects, attracted by the lucrative business model where issuers can invest reserves in high-yield assets like US Treasuries. The demand for stablecoins is driven by their utility in global payments, trade finance, and remittances, offering a faster, cheaper alternative to traditional banking systems. However, the market faces regulatory challenges, particularly in the EU where new rules mandate issuers to have an e-money license, potentially affecting market leaders like Tether. Despite these advancements, the collapse of TerraUSD in 2022 serves as a reminder of the risks involved. With the crypto market experiencing a surge in optimism post-Trump's election victory, stablecoins are seen as a safer entry point for traditional companies into the digital asset space.
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Venture capital funding for blockchain-based startups has seen a notable recovery in 2024, reaching $13.6 billion, which accounts for 4.9% of the total $279 billion in venture capital investments for the year. This marks an increase from the $10.1 billion raised in 2023, although it remains below the peak of $32.4 billion in 2021. Key highlights include Monad Labs raising $225 million for a layer-1 smart contract network and Berachain securing $100 million for its modular blockchain platform. Looking forward, analysts predict a significant surge in 2025, with projections estimating over $18 billion in capital for the crypto sector. This growth is expected to be driven by declining interest rates and clearer regulatory frameworks, enhancing investor confidence. Galaxy Research anticipates a 50% year-over-year increase in VC investment in crypto startups, indicating a robust future for the industry.
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BlackRock's iShares Bitcoin Trust (IBIT) has emerged as the leader in net inflows among Bitcoin ETFs in 2024, attracting over $37 billion since its launch in January. This figure significantly outpaces its closest competitor, Fidelity Wise Origin Bitcoin Fund (FBTC), which managed to pull in nearly $12 billion. BlackRock also dominated the Ether ETF market with its iShares Ethereum Trust (ETHA) securing $3.5 billion in net inflows, while Fidelity's Ethereum Fund (FETH) followed with $1.5 billion. The overall U.S. Bitcoin ETF market saw more than $35 billion in net inflows, despite significant outflows from Grayscale Bitcoin Trust (GBTC). The introduction of Bitcoin ETFs in the U.S. followed a regulatory battle, and their success has been partly attributed to market reactions to political events, like Donald Trump's presidential election victory. Bitcoin ETFs have been particularly dominant, with six of the top ten ETF launches in 2024 being Bitcoin-related, highlighting the cryptocurrency's growing acceptance in traditional investment portfolios.
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Montenegro extradited Do Kwon, the founder of Terraform Labs, to the United States on December 31, 2024, following a decision by its justice ministry to accept a U.S. extradition request over a South Korean one. Do Kwon, known as "the cryptocurrency king," was handed over to FBI officers at Podgorica Airport after a complex legal saga involving multiple court rulings in Montenegro. Kwon was initially arrested in March 2023 while attempting to leave for Dubai with fake passports, leading to his imprisonment in Montenegro. The U.S. charges against him stem from the catastrophic failure of Terraform Labs' cryptocurrencies, TerraUSD and Luna, which lost around $40 billion in market value in May 2022, severely impacting retail investors worldwide. This extradition marks a significant step in addressing the financial crimes associated with the collapse of these digital currencies.
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As 2024 draws to a close, Bitcoin remains below the $100,000 mark, with market analysts now skeptical about it reaching its earlier target of $108,000. The cryptocurrency is currently trading at less than $94,000, with the global crypto market cap standing at $3.3 trillion. XRP has been a standout performer, surging over 300% in December to become the fourth-largest cryptocurrency by market cap. Despite this, XRP experienced a 20% drop in the last 27 days of the month, indicating a cooling off from its November momentum. Other notable performers include TRON, which saw a 23.6% increase, and Binance Coin (BNB), which has shown resilience by trading around $704 per token. However, the broader market dynamics suggest a cautious outlook as Bitcoin has broken below its 50-day moving average, signaling a potential shift in market trends.
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The article discusses the tribute paid by Arthur and Peter Cashin to their father, Art Cashin, who was a prominent figure at the New York Stock Exchange (NYSE) known for his annual New Year's poems. Following his passing, his sons penned a poem reflecting on the events of 2024, touching on global happenings like the Paris Olympics, political shifts, and the ongoing conflicts in Ukraine and Gaza. They also reminisced about cultural figures who passed away, including musicians, actors, and sports personalities. The poem humorously acknowledges their attempt to continue their father's tradition without the aid of AI, highlighting their shared traits and the emotional weight of their loss. The article concludes with the announcement that the Cashin brothers will lead the traditional singing of "Wait 'till the Sun Shines, Nellie" at the NYSE to close out the year, honoring their father's legacy.
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On December 31, 2024, Puerto Rico experienced a significant power outage that left nearly all of its 1.47 million clients without electricity, coinciding with New Year's Eve celebrations. The blackout, which occurred at dawn, was attributed to a failure in an underground power line, according to Luma Energy, the company responsible for electricity transmission and distribution. The outage plunged the island into silence, disrupting daily life and plans for the holiday. Residents like Manuel expressed frustration over the timing, while others like Raúl Pacheco and Julio Córdova adapted by making alternative sleeping arrangements and using cellphones for light. Despite the inconvenience, some residents like Enid Núñez took the outage in stride, having prepared for such events with gas stoves. The power restoration was expected to take up to two days, highlighting ongoing issues with the island's aging and fragile power infrastructure, which has been a persistent problem since Hurricane Maria in 2017.
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On the last trading day of 2024, Wall Street is set to attempt breaking a three-session losing streak. The S&P 500, despite a 2% decline in December, has shown a 2.5% increase in the fourth quarter and is up nearly 24% for the year, marking the first back-to-back 20%-plus years since 1997 and 1998. This performance echoes the market's strength seen in the late 1990s. Meanwhile, Treasury yields have experienced a slight decrease, with the 10-year Treasury yield just above 4.5%, the lowest since December 20, and the 2-year Treasury yield at 4.23%, its lowest since December 18. Despite the Federal Reserve's efforts to cut interest rates three times this year, bond yields remain elevated, which generally supports stock market performance. The bond market will close early at 2 p.m. ET, while the equity markets will have a full trading day, with all markets closed on New Year's Day.
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On the final trading day of 2024, Wall Street is set to attempt breaking a three-session losing streak. The S&P 500, despite a 2% decline in December, has shown a 2.5% increase in the fourth quarter and is up nearly 24% for the year, marking the first back-to-back 20%-plus years since 1997 and 1998. This performance echoes the market's strength seen in the late 1990s. Meanwhile, Treasury yields have experienced a slight decrease, with the 10-year Treasury yield dropping to just above 4.5%, the lowest since December 20. The 2-year Treasury yield also fell to 4.23%, its lowest since December 18. Despite the Federal Reserve's efforts to cut interest rates three times this year, bond yields remain elevated, which generally supports stock market performance. The bond market will close early at 2 p.m. ET, while the equity markets will have a full trading day, with all markets closed on New Year's Day.
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Bitcoin, the flagship cryptocurrency, is poised for a significant price increase in 2025, following a remarkable rally in 2024. The cryptocurrency broke the $100,000 mark in December, spurred by Donald Trump's election win and his pro-crypto policy platform. Trump's anticipated return to the White House is expected to foster a more favorable regulatory environment for digital assets, including replacing the current SEC Chair with someone more crypto-friendly. Key events in 2024, like the approval of U.S. spot bitcoin ETFs and the halving, have already set a positive tone for bitcoin's future. Industry analysts and executives are optimistic, predicting bitcoin could reach new highs, with estimates ranging from $150,000 to $250,000. This optimism is fueled by expectations of increased institutional investment, supportive macroeconomic trends, and the potential for bitcoin to capture a larger share of the gold market. However, there are also concerns about potential market corrections if Trump's policies do not materialize as expected.
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Bitcoin emerged as the top-performing asset class in 2024, driven by the introduction of new ETFs and expectations of regulatory clarity under a new presidential administration. The cryptocurrency's price soared past $108,000 in mid-December, fueled by optimism following Donald Trump's election victory. However, the market has since experienced a downturn, with Bitcoin showing negative returns for the month due to slower-than-expected Federal Reserve rate cuts and profit-taking. Ether also saw significant gains, with a 50% increase year-to-date. The introduction of ETFs, particularly the iShares Bitcoin Trust ETF, has brought in substantial investments, while companies like MicroStrategy, which holds a large amount of Bitcoin, saw their stock prices surge. Despite the overall positive trend, some mining stocks like Mara Holdings and Riot Platforms faced losses, possibly due to the Bitcoin halving event which reduced block rewards.
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In 2024, Bitcoin emerged as the top-performing asset class, fueled by the introduction of new ETFs and expectations of regulatory clarity under a new presidential administration. The cryptocurrency market saw significant volatility, with Bitcoin's price soaring past $108,000 following the U.S. presidential election, driven by optimism about President-elect Donald Trump's potential policies. However, prices later eased due to anticipated slower Federal Reserve rate cuts and profit-taking. The year started with a boost from Bitcoin ETFs, which attracted tens of billions in investments, with the iShares Bitcoin Trust ETF alone amassing over $50 billion in assets. Ether ETFs also saw inflows, though less than Bitcoin's. Stocks connected to cryptocurrencies, like MicroStrategy, Coinbase, and Robinhood, experienced substantial gains, while mining stocks like Mara Holdings and Riot Platforms faced declines due to the Bitcoin halving event, which reduced miner rewards.
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The article discusses the potential for renewed tensions between President-elect Donald Trump and Federal Reserve Chair Jay Powell in 2025. Their past conflicts, highlighted by Trump's criticism of Powell's independence and his desire for influence over Fed decisions, could resurface if Trump's economic policies lead to higher inflation, prompting the Fed to adjust its interest rate strategy. Trump's allies, like Elon Musk, have suggested significant changes to the Fed's operations, including workforce reduction. Despite these tensions, both Trump and Powell have recently made efforts to appear more conciliatory, with Trump stating he has no plans to remove Powell before his term ends. However, the Fed's independence remains a point of contention, with Powell emphasizing its legal protections. The article also touches on the broader implications of Trump's proposed policies, like tariffs, which could influence inflation and economic growth, potentially affecting the Fed's future decisions.
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Vistra Corp. (VST) has made history by becoming the top performer in the S&P 500 Index in 2024, with an impressive 264% annual gain. This performance is largely driven by the increased demand for electricity from the growth of artificial intelligence and data centers, as well as a broader acceptance of nuclear power as a clean energy source. Vistra, along with other independent power producers (IPPs) like Constellation Energy, NRG Energy Inc., and Entergy Corp., have benefited from this trend, with their stocks significantly outperforming the market. Notably, Vistra's gains even surpassed those of tech giants like Nvidia and Palantir. However, while some analysts see continued growth potential, others express caution, highlighting the potential for volatility if the anticipated demand from AI does not materialize. Despite these concerns, the overall sentiment leans towards optimism, with expectations that the rally in utility stocks might continue into the next year.
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Tether, the stablecoin issuer, has significantly bolstered its Bitcoin reserves by transferring over 8,400 BTC, valued at approximately $777.4 million, into its corporate reserve. This move, the largest since March, increases Tether's total Bitcoin holdings to 83,759 BTC, now worth nearly $7.75 billion. The company announced in May 2023 its intention to regularly invest up to 15% of its net realized operating profits into Bitcoin. This latest acquisition comes after Bitcoin's price doubled in 2024, although it has seen a slight dip from its mid-December peak. Tether's Bitcoin holdings place it third among both private and public companies, with only MicroStrategy and Block.one holding more. The trend of companies adding Bitcoin to their treasuries has gained momentum, with firms like KULR Technology Group and Quantum BioPharma recently announcing their own Bitcoin acquisitions, aiming to leverage the cryptocurrency's price surge for potential share price boosts.
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Despite the optimism surrounding Tesla Inc. (TSLA) due to Donald Trump's return to the White House, Wall Street analysts are skeptical about the company avoiding its first annual sales decline in over a decade. Analysts estimate that Tesla might deliver around 510,400 vehicles in the last quarter of 2024, which would set a new quarterly record but still fall short of the company's slight growth forecast for the year. Tesla's market capitalization saw a significant increase post-election, but potential policy changes under Trump, such as the repeal of electric vehicle subsidies and the rollback of fuel-economy regulations, could negatively impact the company. Moreover, while Tesla's CEO Elon Musk remains optimistic about a 20-30% sales increase in 2025, analysts like Garrett Nelson from CFRA Research see potential headwinds from economic factors like a stronger dollar and lower oil prices, predicting only a 10-15% growth. This uncertainty comes amidst a broader slowdown in the global EV market, with competitors like BYD and traditional automakers adjusting their EV strategies.
