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Bitcoin Reached a New All-Time High of $108,135 Before Correcting to $92,000

January 1, 2025

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Bitcoin reached a new all-time high of $108,135.
More public companies announce Bitcoin reserve strategies.
Spot Bitcoin ETFs saw three consecutive net inflow weeks in December.
Bitcoin (BTC) ends the month down 5.5%, while Ether (ETH) is down 9.9% compared to last month.*

Market Overview - December

The price of Bitcoin (BTC) dropped by 5.5% in December, despite reaching a new all-time high of $108,135 before ending the month in the low to mid $90,000s.

For the majority of December, Bitcoin’s price increased every week to reach a new all-time high on December 17. However, since then, the price has experienced a correction that went as low as $91,500 before recovering a little to close out the month.

Earlier this month, the Federal Reserve announced an interest rate cut of 25 basis points but with hawkish tones from Jerome Powell that suggest fewer rate cuts on the near horizon. Since then, the price of Bitcoin has been on a decline, leading to large liquidations across crypto exchanges. The largest cryptocurrency couldn’t stand its ground and lost most of its price increase from early December.

Nonetheless, year-to-date, Bitcoin is up over 120%.

However, this shakeout didn't seem to scare public companies. MicroStrategy acquired 59,700 BTC in December alone. Mara Digital Holdings, Metaplanet, Exodus Movement Inc., and KULR Technology Group followed suit, announcing the use of Bitcoin as a treasury reserve asset or the acquisition of more of it.

Crypto Asset Market Performance Review

The crypto asset markets finished the month a leg lower, with some of the top assets by market capitalization dropping by more than 15%.

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Although December started nicely for investors holding Bitcoin (BTC) and Ether (ETH), after the Fed rate cut announcement, BTC dropped by more than 5.5% and ETH finished the month 9.9% lower.

The only two outstanding performers were Binance’s BNB and Ripple’s XRP, which finished the month 5.1% and 8.9%, respectively, higher than last month. Ripple announced the issuance of a dedicated stablecoin (RLUSD), which sparked an increase in trading volume. At the same time, BNB benefited from new innovations in the BNB Chain ecosystem and the launch of the Osprey BNB Chain Trust, the first publicly-quoted U.S. BNB fund.

The remainder of the top crypto assets also had a down month, with most popular coins finishing the month in the red.

Institutional Interest in Bitcoin

December was another exciting month for institutional investors, with three consecutive net inflow weeks for spot Bitcoin ETFs and more public companies announcing Bitcoin reserve strategies.

Spot Bitcoin ETFs saw three consecutive net inflow weeks in December

Inspired by Bitcoin’s new all-time high, investors seemed eager to acquire more shares in spot Bitcoin ETFs. Aligning with the rapid price increase in the first two-thirds of December, the ETFs saw three consecutive weeks of net inflows.

For the week of December 6 and 13, the total weekly net inflow surpassed $2 billion twice before there was some pullback and a net outflow week for the last week of the year.

Since its launch in January, total assets under management (AUM) of all Bitcoin ETFs combined have surpassed $106.68 billion.

Bitcoin ETFs usher in a new way for investors to allocate and invest in Bitcoin, enabling fund managers or institutions to gain exposure to the ecosystem. As seen in the chart above, a look back at the year shows an overall net inflow into the funds, with only 16 weeks recording net outflows.

More public companies announce Bitcoin reserve strategies

MicroStrategy is continuing its $42 billion capital plan by acquiring 59,700 BTC in December. Its Bitcoin reserve strategy inspired other public companies to follow the pursuit last month, and the trend continued in December.

In December alone, three public U.S. companies – Mara Digital Holdings (MARA), Exodus Movement Inc. (EXOD), and KULR Technology Group (KULR) – disclosed further plans to acquire Bitcoin for their balance sheets. Metaplanet was the latest Asian company to announce an additional purchase of 619.70 BTC.

Bitcoin adoption among public companies is increasing, and Samara Asset Group is at the forefront of it. Two months ago, we announced a bond issuance with the intention of using some of the proceeds to purchase more Bitcoin. We currently hold 520 BTC on our balance sheet with the goal of having 1,000 BTC by the end of next year.

Bitcoin on Balance Sheets

MicroStrategy’s Michael Saylor announced a $42 billion capital plan with a $21 billion equity offering in October. In December, MicroStrategy bought 15,400, 21,550, 15,350, 5,262, and 2,138 BTC, totaling 446,400 BTC on the company’s balance sheet.

Mara Digital Holdings acquired 6,560 BTC after announcing a 0% convertible note offering last month. The public miner currently holds 40,435 BTC on its balance sheet.

Metaplanet, a publicly traded Japanese company, acquired 619.70 BTC after announcing the issuance of moving strike stock acquisition rights to raise up to ¥9.5 billion ($62 million) to buy Bitcoin. The company currently holds 1,761.98 BTC on its balance sheet.

Exodus Movement Inc., a newly listed American company on the NASDAQ, announced the holding of 1,900 BTC on its balance sheet.

KULR Technology Group, a publicly traded American company, announced a dedicated Bitcoin treasury strategy and that they successfully acquired 217 BTC.

‍*Closing price data is from December 30, 2024 at 16:20 CET

Sources:

https://treasuries.bitbo.io/marathon/

https://treasuries.bitbo.io/metaplanet/

https://metaplanet.jp/wp-content/uploads/2024/12/20241223-Notice-of-Additional-Purchase-of-Bitcoin.pdf

https://www.exodus.com/investors/news-events/press-releases/detail/62/exodus-movement-inc-announces-bitcoin-holdings-increased-to-over-1900-provides-swap-volume-update

‍https://sosovalue.com/assets/etf/us-btc-spot

https://x.com/BitcoinMagazine/status/1872414528023261444

‍https://www.wsj.com/business/deals/rumble-gets-775-million-investment-from-crypto-firm-tether-56b4bc99

https://www.cbsnews.com/news/federal-reserve-meeting-rate-cut-interest-rates-december/

https://www.coinglass.com/pro/futures/LiquidationHeatMap

https://www.statmuse.com/money/ask/bitcoin-ytd-return