The cryptocurrency sector valuation dipped 2.8% to hit $3.46 trillion on Monday, reflecting $103 billion outflows within the daily timeframe.
Altcoin market updates: Ethereum memes advance, as XRP, SOL, TRX traders take profits
Bitcoin price wobbled below the $97,000 level on Monday, despite Microstrategy announcing another BTC purchase of $2.1 billion.
As BTC retraced 2%, the bearish headwinds spread toward the altcoin market, sending last week's top gainers, Ripple (XRP) and Tron (TRX), into a tailspin.
As the profit-taking wave intensifies, bears could potentially force the TRX price downswing toward $0.25.
PEPE price rose to a new all-time high of $0.000028, while Floki Inu (FLOKI) also gained 2% to advance above the $0.000025 level.
Bitcoin price dropped as low as $94,000 on Monday, down 7% from last week’s record-breaking rally to $104,100.
Recent reports suggest that the Bitcoin market dip can be attributed to escalating geopolitical risks and skittish sentiment surrounding the upcoming US Consumer Price Index (CPI) report on Wednesday.
Since Bitcoin price reached a global peak of $104,100 on December 4, political unrest has dominated media headlines, ranging from Assad’s exit from Syria to the vote of no-confidence in France’s President, Emmanuel Macron, and a short-lived martial law episode in South Korea.
The US Bureau of Labor Statistics is scheduled to release the November CPI report on Wednesday. The TradingEconomics website shows that market watchers are pricing in a decline in US core inflation, which would see a decline in the month-on-month figure for the first time since December 2023. This could see the Federal Reserve (Fed) execute a more restrained rate cut during the next FOMC meeting on December 18.
Bitcoin (BTC) price vs. Gold (XAU)
Investors appear to be dumping Bitcoin and strategically acquiring Gold. As seen above, Bitcoin price has tumbled 7% in the last four days, dropping from $104,100 to a weekly timeframe low of $94,261 at press time on Monday. Meanwhile, the Gold price rose 1.8% during that period, rising from $2,631 to $2,660.
When a spike in Gold prices coincides with a dip in risk assets like Bitcoin, as observed in the past week, it often signals investors taking a cautious outlook amid growing bearish sentiment.
However, in an exclusive interview with FXStreet, Andrew Alekseev, CMO at Weltrade, has hinted that the recent Gold price surge may be due to seasonal demand rather than escalating risk factors.
“Gold has traditionally been a safe haven during inflation and geopolitical shifts, and in 2024 it has surged by more than 30%, breaking record after record and reaching an all-time high. However, Bitcoin ETF products, AI stocks, and risk assets have found a rare anchor. With new regulations to foster tech growth, the sector might continually see a boost in the coming years.
With lower interest rates, excess liquidity will flood the capital markets as borrowing costs go lower. Investing during inflation is often strategic, with significant holdings in a portfolio allocated to hedge against USD freefall. To properly secure capital, some investors may further diversify the choice of hedge based on different assessed criteria. Safe bets are key in times of political uncertainty. Market uncertainty will remain until the Trump administration is fully established and policies are priced. Pending then, volatility should be expected across all products.”
Anton Tkachev, a Russian State Duma member, has formally appealed to Finance Minister Anton Siluanov to establish a national Bitcoin reserve.
Citing geopolitical risks and sanctions, Tkachev argued that cryptocurrencies like Bitcoin could serve as alternative financial tools, independent of traditional global systems.
"With limited access to international payment systems, cryptocurrencies are becoming virtually the only tool for international trade"
- Anton Tkachev
The lawmaker highlighted Bitcoin's recent performance, reaching $100,000 in December 2024, as evidence of its potential as a store of value and an investment asset.
Tkachev emphasized that conventional foreign reserves are increasingly vulnerable to sanctions and inflation, positioning Bitcoin as a hedge against such threats.
This aligns with the Central Bank of Russia's push to integrate digital assets into cross-border payment systems.
However, experts note that such a shift would demand sweeping regulatory changes and close coordination between government bodies and financial regulators.
Radiant Capital has revealed that the $50 million DeFi breach it suffered in October was orchestrated by North Korea-linked hackers.
The attack began with a Telegram message sent to a Radiant developer, disguised as coming from a trusted ex-contractor.
The message contained a ZIP file infected with malware, which spread across the network and allowed hackers to steal private keys and manipulate transactions unnoticed.
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 liquidity pools on Binance Smart Chain and Arbitrum.
In response, Radiant Capital is now working with the FBI and cybersecurity firms to recover the stolen funds and has implemented enhanced multi-signature protocols to prevent future breaches. This attack highlights the persistent threats DeFi platforms face and the evolving tactics of state-sponsored hackers
The UK Financial Conduct Authority (FCA) has flagged Solana-based memecoin launchpad Pump.fun for operating without authorization, cautioning consumers about potential risks.
The platform has since restricted access for UK users, citing regulatory compliance. Pump.fun, responsible for facilitating $250 million in token trades this year, accounted for 62% of Solana's decentralized exchange transactions in November.
Pump.fun's rapid growth has drawn scrutiny, with legal experts warning of potential violations of UK laws, including money laundering regulations.
Its future remains uncertain, especially with founders reportedly based in the UK.