December in the crypto market was shaped by two primary factors. Historically, as the year’s final month, many institutions opt to lock in profits before the holidays. More critically, the Fed’s new projections for 2025 rate cuts, following an additional 25bps reduction, signaled a slower pace of monetary easing.

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Bitcoin reached a new all-time high of $108K early in the month before retreating to close the year at $93K. This performance capped an extraordinary year, with Bitcoin delivering a staggering 120% return for 2024. These gains were driven by macroeconomic trends, the approval of ETFs, and the halving event, which amplified supply-side dynamics.

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Portfolio Performance Analysis

FiCAS Selected Crypto Assets ETI Performance:

The ETI hit a new all-time high in December but experienced a slight decline afterward, closing the month in negative territory. However, it regained momentum immediately after the New Year and has a year-to-date gain of 33.87%. More about it here.

FiCAS Dynamic Crypto ETP Performance:

Due to the allocation to altcoins, the ETPs experienced a significant surge in December, followed by a drawdown toward the end of the month. The portfolio began recovering after the New Year. The FiCAS Dynamic Crypto ETP has a year-to-date gain of 48.38%. More about it here.

15 FiCAS Active Crypto ETP:

Due to the allocation to altcoins, the ETPs experienced a significant surge in December, followed by a drawdown toward the end of the month. The portfolio began recovering after the New Year. The 15 FiCAS Active Crypto ETP has year-to-date gain of 78.93%. More about it here.

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Market Outlook

The incoming Trump administration is expected to play a pivotal role in shaping the crypto market’s trajectory over the coming months. With promised pro-crypto policies, the regulatory landscape could undergo significant reform, including the inevitable approval of new crypto ETFs. A key focus for the new SEC leadership will likely be expanding ETF coverage to include mega-cap and U.S.-based crypto assets, with Solana and XRP emerging as top candidates. These developments, coupled with proposed tax cuts, could stimulate a more risk-on environment, setting a favorable tone for early 2025.

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Meanwhile, regulatory frameworks like MiCA have intensified the global stablecoin race, shaping competition and innovation within the sector. On another front, the growing adoption of Bitcoin as a treasury asset by private companies and governments signals the beginning of a sustainable demand cycle. This trend not only creates a positive feedback loop for Bitcoin prices but also bolsters the financial profiles of participating companies, reinforcing the asset’s role in long-term value creation.

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The strong realized gains of 2024 have left investors with ample capital to deploy, laying the foundation for a promising altcoin season. Emerging technologies, particularly AI-driven blockchain solutions, are expected to dominate in 2025 as new projects gain traction. With supportive macroeconomic policies, a maturing regulatory environment, and technological innovation, the crypto market is poised for another transformative year, offering opportunities across the digital asset spectrum.

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Disclaimer: This content is for educational and informational purposes only and does not constitute trading, legal, or investment advice. It is directed at our followers in Switzerland and may not represent the views of FiCAS. The author may hold assets mentioned in this article and assumes no obligation or responsibility for any actions taken based on the information provided.

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