The cryptocurrency sector's valuation increased by $12.5 billion, reaching an all-time high of $3.73 trillion on Tuesday. While Bitcoin price hit a new all-time high of $108,135, Ethereum and Solana also posted significant gains. Privacy-focused coins Monero and Litecoin also posted significant gains after US authorities shut down a North Korean cryptocurrency laundering network.
Altcoin market update: Solana, XRP, and Litecoin emerge as top performers ahead of Fed decision
As the U.S. Federal Open Market Committee (FOMC) began its final meeting of the year on Tuesday, bullish traders made last-minute bets hoping for a third straight interest rate cut.
Cryptocurrency market capitalization, December 17th
Amid rapid capital inflows, the crypto sector grew by 3.7%, adding nearly $130 billion in global market capitalization on Tuesday.
While Bitcoin (BTC) hit a new all-time high of $108,135, mega-cap altcoins such as Litecoin (LTC), Solana (SOL), and Ripple (XRP) also posted significant gains. Solana's price rose 4% on Tuesday following the growing popularity of Fartcoin (FART), the latest meme coin fad that surpassed $1 billion in market capitalization on Tuesday. On Monday, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) sanctioned seven entities involved in providing financial and military support to the Democratic People's Republic of Korea (DPRK).
Monero (XMR) Price Action |Source: Coin Gecko
U.S. sanctions against North Korean hackers have increased demand for privacy-focused altcoins.
Litecoin price rose 7% to break through the $130 resistance, while Monero also rose 2% to reach the $218 level.
Chart of the Day Traders sell altcoins and buy Bitcoin due to risk aversion
In the first week of December, global markets faced turmoil as geopolitical tensions escalated between South Korea and Syria.
The cryptocurrency market rebounded following the release of the dovish US Consumer Price Index (CPI) report on December 10th, but investors remain cautious as low-risk preferences persist following the recent market crash. Important indicators suggest that.
BlockchainCentre's Altcoin Season Index highlights this sentiment by tracking the ratio of altcoin market demand to daily capital inflows into Bitcoin, the largest and most established cryptocurrency.
Historically, when investors become risk-averse amid economic uncertainty, capital tends to favor Bitcoin over more volatile altcoins.
Altcoin Season Index, December 17, 2024 | Blockchain Center
As shown in the graph below, the altcoin season index has fallen from 75 on December 4th to 65 as of writing on Tuesday, and has been the fastest since the market bottomed on December 9th. It shows that the demand for altcoins has decreased by 13% in comparison.
This sharp decline highlights traders' cautious stance amid the current situation.
Looking ahead, all eyes are on the Federal Reserve's (Fed) interest rate decision on Wednesday.
If the Fed cuts interest rates in line with analysts' expectations, it could reignite investor demand for risky assets and reignite capital flows into altcoins.
Bybit to end virtual currency services in France by January 2025 amid regulatory pressure
Bybit, a leading global cryptocurrency exchange, will suspend withdrawal and storage services for users in France starting January 8, 2025, due to increased regulatory oversight by French authorities. Affected users are requested to withdraw their assets before the deadline to avoid any disruption.
Accounts with balances above 10 USDC will have their holdings transferred to Coinhouse, a licensed French cryptocurrency management company, after verification.
For accounts below this threshold, Bybit will deduct a termination fee of 10 USDC.
The move underscores extensive legislative efforts to strengthen oversight of cryptocurrency services in the region.
Eliza Labs partners with Stanford to research AI integration in cryptocurrencies
Eliza Labs, creator of the AI agent platform ai16z, partnered with Stanford University's Future of Digital Currency Initiative to explore the interaction between AI and digital currencies.
This research prioritizes the development of trust mechanisms and governance models for AI agents in the cryptocurrency ecosystem.
This Eliza Labs-funded collaboration combines leadership from Stanford University professors with insights from top cryptocurrency industry insiders.
This effort aims to improve the trustworthiness of AI agents and strengthen their role in distributed systems.
