The cryptocurrency sector's valuation fell 2.8% to $3.46 trillion on Monday, reflecting outflows of $103 billion within the daily time frame.
Altcoin market update: Ethereum meme moves forward as XRP, SOL, TRX traders take profits
Bitcoin price fell below the $97,000 level on Monday despite MicroStrategy announcing another $2.1 billion BTC purchase.
Bearish headwinds spread to the altcoin market as BTC fell 2%, with last week's top gainers Ripple (XRP) and Tron (TRX) slumping.
Ripple (XRP) price fell 8% on the day, opening above $2.60 before falling towards $2.35. Tron (TRX) price fell below $0.30 on Monday, down 33% from its all-time high set on December 4th.
As the wave of profit-taking intensifies, bears could push TRX price lower towards $0.25.
Amid the market-wide correction, the Ethereum meme managed to secure significant gains.
PEPE price rose to an all-time high of $0.000028, while Floki Inu (FLOKI) also rose 2% to cross the $0.000025 level.
Chart of the Day: Are Investors Dumping BTC to Gold Amid Geopolitical Risks and CPI Report?
Bitcoin prices fell to $94,000 on Monday, down 7% from last week's record rise to $104,100.
According to recent reports, the decline in the Bitcoin market could be due to rising geopolitical risks and nervous sentiment surrounding the US Consumer Price Index (CPI) report scheduled for Wednesday.
Since the Bitcoin price reached a world high of $104,100 on December 4th, everything from Assad's withdrawal from Syria to a vote of no confidence in French President Emmanuel Macron to the brief imposition of martial law in the south has taken place. Political unrest is dominating media headlines. South Korea.
The U.S. Bureau of Labor Statistics is scheduled to release its November CPI report on Wednesday. According to the Trading Economics website, market participants are pricing in a decline in core U.S. inflation, which would result in the first month-on-month decline since December 2023. This could lead to further policy actions by the Federal Reserve. Interest rate cuts will be restrained at the next FOMC meeting on December 18th.
Bitcoin (BTC) price vs. Gold (XAU)
Investors appear to be dumping Bitcoin and strategically acquiring gold. As we saw above, the price of Bitcoin has fallen 7% over the past four days, dropping from $104,100 to a weekly low of $94,261 at press time on Monday. Meanwhile, gold prices rose 1.8% over the same period, rising from $2,631 to $2,660.
When a spike in gold prices coincides with a decline in risk assets such as Bitcoin, as was observed last week, it often signals that investors are taking a cautious outlook amid rising bearish sentiment. I am.
However, in an exclusive interview with FXStreet, Welltrade CMO Andrew Alexev suggested that the recent surge in gold prices may be due to seasonal demand rather than increased risk factors.
“Gold has traditionally been a safe haven during inflation and geopolitical shifts, and in 2024 it soared more than 30%, breaking record after record and reaching all-time highs. Bitcoin ETF products, AI stocks, and risk assets have found a rare anchor. New regulations to foster technology growth are likely to see continued growth in the sector in the coming years.
When interest rates fall, borrowing costs fall, causing excess liquidity to flood capital markets. Investing during inflation is often strategic, allocating significant holdings in your portfolio to hedge against USD freefall. To ensure adequate capitalization, some investors may further diversify their hedge selection based on various evaluation criteria. In times of political uncertainty, safe bets are key. Market uncertainty will remain until the Trump administration is fully inaugurated and policies are finalized. Until then, volatility should be expected across all products. ”
Latest crypto news:
Russian lawmaker proposes national Bitcoin reserve under sanctions
Anton Tkachev, a member of the Russian State Duma, has formally appealed to Finance Minister Anton Siluanov for the creation of a state Bitcoin reserve.
Tkachev cited geopolitical risks and sanctions and argued that cryptocurrencies like Bitcoin could serve as an alternative financial tool independent of the traditional world system.
“With limited access to international payment systems, virtual currencies are effectively becoming the only tool for international trade.”
– Anton Tkachev
The lawmaker highlighted Bitcoin's recent performance, which reached $100,000 in December 2024, as evidence of its potential as a store of value and investment asset.
Tkachev emphasized that traditional foreign exchange reserves are increasingly vulnerable to sanctions and inflation, and positioned Bitcoin as a hedge against such threats.
This is in line with Russia's central bank's efforts to integrate digital assets into cross-border payment systems.
But experts say such a shift would require fundamental regulatory changes and closer coordination between government agencies and financial regulators.
Radiant Capital admits North Korean hackers were involved in $50 million DeFi hack
Radiant Capital has revealed that a $50 million DeFi breach it suffered in October was orchestrated by North Korea-linked hackers.
The attack began with Telegram messages sent to Radiant developers that appeared to come from a trusted prime contractor.
The message contained a malware-infected ZIP file that spread throughout the network, allowing hackers to steal private keys and manipulate transactions without their knowledge.
The hackers, identified as part of the North Korean threat group UNC4736, used sophisticated malware to exploit vulnerabilities in Radiant's security measures.
The funds were siphoned from the Binance Smart Chain and Arbitrum liquidity pools.
In response, Radiant Capital is currently working with the FBI and cybersecurity firms to recover stolen funds and implement enhanced multi-signature protocols to prevent future breaches. The attack highlighted the persistent threats facing DeFi platforms and the evolving tactics of state-sponsored hackers.
UK financial regulator warns Solana Memecoin Launchpad Pump.fun
The UK Financial Conduct Authority (FCA) has warned Solana-based meme coin launchpad Pump.fun for operating without a license and warned consumers of the potential risks.
The platform has since restricted access to UK users citing regulatory compliance. Pump.fun is responsible for facilitating $250 million in token trading this year and accounted for 62% of Solana's decentralized exchange trading in November.
Pump.fun's rapid growth has come under scrutiny, with legal experts warning it could breach British law, including money laundering regulations.
Its future remains uncertain, especially as its founders are reportedly based in the UK.
