This week in crypto, Bitcoin faced downward pressure following the U.S. Federal Reserve’s 25 basis point interest rate cut and its announcement of fewer cuts than initially expected in 2025. The decision contributed to a broader market sell-off with Bitcoin trading just under the US$100,000 mark. Analysts suggest the Fed’s cautious stance may continue to weigh on cryptocurrency markets in the short term, while some investors view this dip as a potential buying opportunity. Altcoins, however, bore the brunt of the downturn with many experiencing sharper declines as investors retreated to Bitcoin and other major assets amid heightened market uncertainty. 

In an unexpected move, Solana-based memecoin Fartcoin exceeded a $1 billion market capitalisation, defying the broader market downturn. Such explosive growth in speculative assets often raises questions about market sentiment. Analysts suggest that Fartcoin’s meteoric rise could signal a euphoric phase in the crypto cycle, reminiscent of past bull runs where memecoin mania marked temporary market tops. While some view the surge as an opportunity for high-risk gains, others caution that speculative fervour could precede increased volatility or broader market corrections. 

The Pudgy Penguins NFT project launched its token, PENGU, distributing about half of its nearly 89 billion supply to community members, with 26% specifically allocated to NFT holders. Despite the initial buzz, PENGU experienced a sharp decline in value shortly after launch, reflecting the challenges new tokens face in maintaining stability amid broader market pressures. 

Meanwhile, President-elect Donald Trump’s crypto project, World Liberty Financial, continued its aggressive cryptocurrency acquisition strategy throughout December, bringing its total spending to date to nearly $45 million. Recent acquisitions include ONDO and ENA tokens, underscoring the project’s focus on building a diversified portfolio and establishing a strong presence in the decentralised finance sector. 

Source: Screenshot taken from Arkham Intelligence, displaying the financial portfolio details of the “World Liberty Financial” wallet.

Bitcoin’s current price of approximately US$97,000 reflects cautious market sentiment, with the potential formation of a weekly bearish engulfing candle suggesting short-term risks to the uptrend. However, many investors remain cautiously optimistic about Bitcoin’s long-term outlook, anticipating further bullish momentum in the future. 

These developments highlight the dynamic and fast-moving nature of the cryptocurrency landscape, shaped by macroeconomic decisions, speculative trading, and strategic investments by emerging projects. As the year draws to a close, the crypto community remains focused on how these trends will influence the market in 2025. 

Other news circulating the block: 

• MicroStrategy added to the Nasdaq 100 index 

• President Biden proposes a ban on congressional stock trading 

• Ripple’s RLUSD stablecoin begins trading on platforms 

• Mo Shaikh steps down as CEO of Aptos Labs 

• U.S. Bitcoin ETFs approach gold ETFs with $120B in AUM 

• Hawk Tuah coin investors file a lawsuit against internet personality