BizwavemediaPersonal Finance and Crypto Updates

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BlackRock’s iShares Bitcoin Trust (IBIT) recorded its largest single-day outflow of over $332 million on January 1, surpassing its previous record of $188 million set on December 24, according to updated data from Farside Investors.

The massive IBIT withdrawals pushed US spot Bitcoin ETF’s overall flows into red territory on Thursday, even as most rival ETFs posted gains. The Grayscale Bitcoin Trust (GBTC) also saw losses of nearly $7 million.

Bitwise Bitcoin ETF (BITB) led daily inflows with $48 million, followed by Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin (ARKB), and Grayscale Bitcoin Mini Trust (BTC). These funds collectively took in approximately $108 million on Thursday.

Excluding Valkyrie’s Bitcoin ETF, the 10 US-based spot Bitcoin ETFs recorded combined outflows of $248 million. The week’s total net outflows have surpassed $650 million.

IBIT’s total net outflows have reached $392 million since December 3, marking three consecutive trading days of losses. Despite the recent outflows, the fund remains the dominant Bitcoin ETF, holding nearly 552,000 BTC valued at over $51 billion as of January 2.

Launched in early 2024, IBIT outperformed the vast majority of ETFs throughout the year. The fund ranked third on Bloomberg ETF analyst Eric Balchunas’ 2024 leaderboard with approximately $37 billion in year-to-date flows, trailing only the established index giants VOO and IVV.

Here’s final 2024 Top 20 ETF Leaderboard: $VOO ended w/ $116b which is $65b beyond old record (absurd). $IVV closed strong w $89b (bc used more than $SPY for TLH?). $IBIT took 3rd spot w $37b (still <1yr old!). Total flows at $1.14T, which broke old record by 25%, or $225b..🔥🔥 pic.twitter.com/RRCbHEAN9Q

— Eric Balchunas (@EricBalchunas) January 2, 2025

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US spot Bitcoin ETFs raked in $908 million in net inflows on Friday, rebounding from Thursday’s $242 million outflow, according to data from Farside Investors.

BlackRock’s iShares Bitcoin Trust (IBIT) netted $253 million, ending a three-day negative streak that saw $392 million in losses. The fund’s total net inflows recovered to $37 million, with holdings of 548,506 Bitcoin valued at $53.4 billion.

Fidelity’s Bitcoin Fund (FBTC) led Friday’s gains with $357 million in net inflows—one of its strongest daily performances since launch. FBTC has accumulated over $12 billion in new investments as of January 3.

The ARKB fund, managed by ARK Invest and 21Shares, recorded $222 million in net inflows. Bitwise, Grayscale (BTC), and VanEck funds also posted gains, while other ETF providers reported no flows.

Bitcoin reclaims the $98,000 mark

Bitcoin reached $98,900 on Friday, surpassing $98,000 for the first time since December 26, CoinGecko data shows. The digital asset currently trades above $98,000, showing a 4% increase over the past week.

Analysts predict a bullish year for Bitcoin, driven by growing institutional and national adoption.

Galaxy Research forecasts five Nasdaq 100 companies and five nations will add Bitcoin to their balance sheets in 2025 to diversify their portfolio and meet their trade settlement needs. The firm also projects US spot Bitcoin ETFs will reach $250 billion in assets under management.

Jan van Eck, CEO of VanEck, recommends that investors increase their holdings in Bitcoin and gold through 2025, as these assets offer valuable protection against inflation, fiscal uncertainty, and global de-dollarization trends.

Van Eck projects Bitcoin could reach $150,000 to $170,000. This stance is supported by other financial analysts and institutions recognizing Bitcoin’s potential to hedge against financial risks.

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Thailand’s Deputy Prime Minister and Finance Minister Pichai Chunhavajira has unveiled a pilot program for crypto payments in Phuket.

The initiative will allow tourists to use Bitcoin for transactions, marking the country’s first government-backed trial in the tourism sector.

The initiative, announced at a Marketing Association of Thailand seminar, will operate within existing legal frameworks without requiring law amendments, according to local news publication Nation Thailand.

Foreign tourists can register their Bitcoin through a Thai exchange and complete identity verification to participate in the program.

“The growing popularity and value of cryptocurrencies among international tourists have driven this initiative,” Pichai said.

A clearing house will convert Bitcoin payments into Thai baht, protecting local businesses from crypto price volatility.

The program builds on existing crypto adoption in Thailand, where the Huay Phueng district in Kalasin, known as “Bitcoin town,” has over 80 shops accepting Bitcoin payments.

These businesses range from noodle vendors and market stalls to tuk-tuk services, with a local coffee shop serving as an educational hub for Bitcoin transactions.

Participating merchants in Phuket will receive payments in Thai baht through the clearing house system.

The pilot aims to provide foreign visitors with a legal and convenient alternative to cash transactions while maintaining Thailand’s competitiveness as a tourism destination.

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Circle has joined Ripple, Coinbase, and Kraken in supporting President-elect Donald Trump’s inaugural committee. Circle co-founder and CEO Jeremy Allaire announced today that the company just donated 1 million USDC to Trump’s inauguration.

“We are excited to be building a great American company,” Allaire said, noting that the Committee’s acceptance of USDC demonstrates “how far we have come, and the potential and power of digital dollars.”

Established to oversee the events for Trump’s second inauguration, the Trump-Vance inaugural committee set a fundraising goal of $150 million. According to ABC News, contributions have already crossed this mark since last December.

Major tech executives have pledged substantial donations, including $1 million each from Amazon’s Jeff Bezos, OpenAI CEO Sam Altman, and Meta’s Mark Zuckerberg, CNBC reported last month. Robinhood Markets committed $2 million, while Uber and CEO Dara Khosrowshahi each pledged $1 million.

Unlike political action committee donations, inaugural committee contributions have no limits. These funds will support various inaugural events such as galas and parades.

Trump’s inauguration is set for January 20, 2025, at 12 PM ET. The major event will take place at the US Capitol in Washington, D.C., marking Trump’s return to the presidency for a non-consecutive second term.

The crypto industry is poised for major developments as Trump prepares to take office. The incoming administration is expected to foster a more favorable regulatory environment for crypto assets in the US, thus encouraging other nations to follow suit.

With the transition to a new administration, there is potential for clearer guidelines regarding crypto regulations, which could alleviate uncertainty for both investors and businesses. The anticipated shift in policy may encourage greater participation from financial institutions in the crypto market.

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Phantom, a prominent multi-chain crypto wallet provider, faced criticism after their social interaction with Ace of AI, which many interpreted as a formal partnership between the two projects, led to confusion and investor losses.

On Jan. 9, Ace of AI announced on X that they were “excited to partner with Phantom” as part of the Phantom embedded early access program. Phantom replied to Ace of AI’s tweet with a series of emojis that were interpreted as an official partnership.

The announcement led to a surge in the price of Ace of AI’s token, ACE. According to data from GeckoTerminal, the token rocketed to $0.017 following the news.

Phantom later deleted the comment and clarified in a separate statement that Ace of AI was merely using their embedded wallet product and that no partnership or endorsement existed. They said they were unaware their service would be used to endorse any token.

There is no partnership. @Aceofai is just using our embedded wallet product. We are NOT endorsing any token and weren’t aware we would be used to do so.

— Phantom (@phantom) January 9, 2025

ACE’s value quickly plummeted after Phantom’s clarification. Currently, it is trading at approximately $0.0005, down over 90% from its initial rally.

Users on X started confronting Phantom and questioning their communication approach. Many investors reported that they felt misled by the perceived association between the two companies and suffered financial losses.

If there is no partnership, why did @adamdelphantom retweet the 👻🤝♠️?

0 apologies or responsibility taken by @phantom

We’re literally getting RUGGED over here due to your incompetence https://t.co/8QAAxUWQ0g

— Psycho (@PsychosCalls) January 9, 2025

Phantom just rugged everyone and pulled out $400k from the chart pic.twitter.com/m8nqz4sA5a

— lynk (@lynk0x) January 9, 2025

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Bitcoin erased its 12-hour rally on Friday, retreating to $92.5K in the immediate aftermath of stronger-than-expected US jobs data.

The largest crypto asset by market cap printed 14 consecutive hourly green candles earlier in the day, climbing 3.5% from just below $92,000 to $95,000.

However, the release of robust economic data reversed the trend, pulling Bitcoin and the broader crypto market into the red.

The US economy added 256,000 jobs in December, significantly surpassing forecasts of 160,000.

The unemployment rate dipped to 4.1% from November’s 4.2%, signaling a hotter-than-anticipated labor market.

The report comes amid expectations of Federal Reserve rate cuts in 2025, which are now being scaled back following the jobs data.

Bitcoin’s decline mirrored a broader selloff in the crypto market, with total market capitalization down 2% over the past 24 hours, according to CoinGecko.

Major altcoins, including Ethereum, Solana, and Dogecoin, also erased their gains from the past day, returning to levels seen 24 hours ago.

The jobs data adds to a week of volatility for Bitcoin, which had started the week near $103,000 before falling to a low of $92,000 on Thursday.

The report’s impact was felt across traditional markets as well, with US stock index futures down about 1%, the 10-year Treasury yield climbing nine basis points to 4.78%, and the dollar index rising 0.6%.

Traders have quickly scaled back expectations for further Federal Reserve rate cuts in 2025, with CME FedWatch showing the odds of a March rate cut dropping to 25% from 41% before the jobs report.

The market has since recuperated slightly, with Bitcoin trading at $93,500 at press time, though it remains down overall.

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Bitcoin’s decline has created a prime opportunity for accumulation, according to CryptoQuant analyst Mac_D.

The token has shown no signs of strength following its sell-off from weekly highs of $103,000 on Monday, but long-term metrics suggest the market’s upward trend remains intact.

Analyst MAC_D reported on Thursday that the current bearish sentiment aligns with a dip in Bitcoin’s short-term SOPR (Spent Output Profit Ratio), which has fallen to 0.987.

This metric indicates that investors holding Bitcoin for less than six months are now selling at a loss.

MAC_D noted that such periods of short-term investor losses have historically presented favorable accumulation opportunities.

“When short-term investors incur losses, long-term cycle indicators like MVRV, NUPL, and the Puell Multiple often show that the market remains in an upward trend,” he said.

He added that the current correction does not suggest a cycle peak, and savvy investors may seize the opportunity to accumulate Bitcoin at discounted prices.

Historical data indicates that long-term investors often step in to accumulate Bitcoin during market corrections as short-term holders sell at a loss.

This behavior, often observed during market corrections, can set the stage for a price rebound as selling pressure subsides. At press time, Bitcoin is trading at $93,500.

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