Memecoins Lose Momentum as $40 Billion Wiped Out in December
The memecoin market saw a significant decline in December, shedding nearly 30% of its total market capitalisation. According to CoinMarketCap data, the market cap for memecoins peaked at $137.06 billion on 9 December, only to plummet to $92.67 billion by 23 December. This represents a staggering 32.38% drop within the month.
As of now, the overall market cap for memecoins stands at $98.72 billion, marking an 18% decline from the start of the month’s performance at $120.14 billion. The steep downturn highlights a slowdown in the demand and momentum for meme-based tokens, a sector that had seen explosive growth earlier this year.
Bitcoin Could Reach $400,000 by 2025: Blockware Predictions
Crypto mining firm Blockware Solutions has outlined three possible scenarios for Bitcoin’s price trajectory by 2025, with the most optimistic case forecasting a surge to $400,000.
In its 28 December market forecast, Blockware’s “bear case” predicts Bitcoin’s price could reach $150,000, a 58% increase from its current level of $94,981. This scenario could materialise if the Federal Reserve reverses course on interest rate cuts and if former US President Donald Trump does not pursue a Strategic Bitcoin Reserve (SBR) initiative. Additionally, aggressive selling by long-term holders could also cap the price at this level.
The “base case” scenario estimates a price of $225,000, assuming the US government establishes a Strategic Bitcoin Reserve, the Federal Reserve continues its expected interest rate cuts, and corporate adoption of Bitcoin remains steady.
Finally, the “bull case” envisions Bitcoin surging to $400,000 if all three factors—a government SBR, favourable Fed policies, and accelerated corporate adoption—align optimally. The forecast underscores the critical role of macroeconomic factors and government policies in shaping Bitcoin’s future valuation.
El Salvador Amasses 6,000 Bitcoin in Strategic Reserve
El Salvador’s Bitcoin holdings have grown to over 6,000 BTC, valued at approximately $569 million as of 28 December 2024. The Central American nation is now among the top sovereign holders of Bitcoin, alongside the United States, China, the United Kingdom, Ukraine, and Bhutan.
The country, which made Bitcoin legal tender in September 2021, has been steadily adding to its reserves by purchasing one Bitcoin daily. However, a recent buying spree saw the acquisition of 11 Bitcoin in a single day, worth around $1 million. This move followed El Salvador’s $1.4 billion agreement with the International Monetary Fund (IMF).
As part of the deal, El Salvador agreed to scale back some of its Bitcoin-related policies, including removing the mandate for businesses to accept Bitcoin as legal tender. Despite this concession, the nation continues to actively bolster its Bitcoin reserve, reinforcing its position as a significant player in the cryptocurrency market.
The cryptocurrency market remains dynamic, with notable developments in memecoins, Bitcoin’s price outlook, and El Salvador’s bold Bitcoin strategy. Investors and enthusiasts alike will be watching closely as these trends evolve in the coming months.
Leave a Reply