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What we’ve cooked up for you today…
😱 BlackRock outflows
📉 A correction is coming…
📈 Grinding higher
💰 And more…
Prices as at 3:35am ET
BLACKROCK OUTFLOWS 😱
BREAKING: BlackRock ETF ends year with 4th outflow of the month amid quiet day
Despite crushing it throughout the year…
The Bitcoin ETFs ended 2024 on somewhat of a sour note.
So far this week has seen $409.8 million in net outflows, led by Grayscale.
Here’s the weekly breakdown so far:
Grayscale GBTC: -$144.1 million
Fidelity FBTC: -$117.8 million
BlackRock IBIT: -$60 million
But that’s only this week…
The rest of December was seriously impressive.
In total, the Bitcoin ETFs saw net inflows of over $4.5 billion in December.
And $35.2 billion in inflows throughout the entirety of 2024. 🤯
Checkout the full monthly breakdown below:
Here’s an even crazier stat for you…
BlackRock is the worlds largest asset manager with over $11.5 trillion in assets under management (AUM).
In total BlackRock manages 1,101 funds.
Their Bitcoin ETF (IBIT) ended 2024 as their 13th largest fund with $52 billion in AUM.
And it hasn’t even been trading for a full year yet…
It’s unbelievable. 🤯
Finally to close out this section we’ve got another interesting chart for you.
The chart below highlights the top performing ETFs of 2024.
The Bitcoin ETFs are so far ahead of everything else…
2025 is shaping up to be an impressive year. 😎
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A CORRECTION IS COMING… 📉
According to global liquidity, we could be due for a sizeable correction in early 2025.
But don’t fear - we’ve seen this play out before.
That’s the latest message out of Raoul Pal.
Raoul Pal is a macroeconomic expert with one of the best track records in crypto.
In his latest update, Raoul explained that based on global liquidity, Bitcoin could see a large correction in early 2025:
What is global liquidity?
Global liquidity is the amount of money & credit available around the world.
When central banks lower interest rates and print money, global liquidity increases ⬆️
When they raise interest rates and stop printing money, global liquidity decreases ⬇️
This matters because, as the chart shows, Bitcoin basically mirrors global liquidity.
Now, after looking at the above chart, the normal reaction is panic:
“So, the liquidity story here is, “Oh my God,” and I’ve been sent this chart a thousand times by people. “Oh my God, what happens? Is it all over? Is this the peak? Is this the end? Do we get out now? What happens? What happens?” Panic, panic, panic, panic.
But don’t worry, we’ve seen this happen before:
“We had exactly the same thing last time Trump was elected. The dollar was strong, rates went up, liquidity contracted, and the market had a big rally.
Then, in January, because of the lag, what we saw was a sharp 27% correction in Bitcoin.
After that, it ripped higher—so much, in fact, that it went up 23x.”
Here’s how that looked on the chart:
Raoul’s main point?
Don’t fear the correction:
“What we’re saying is that the correction is nothing to fear. That correction is just a marker point from phase 1 of the banana zone to phase 2 of the banana zone.”
Now, there’s no guarantee of a correction in early 2025, but if it happens, don’t panic.
The cycle isn’t over—and we’ve seen this before. 🌅
GRINDING HIGHER 📈
Today we’ll be taking a look at the amount of wallets that hold at least some Bitcoin. (anything greater than 0)
This metric provides a high level overview of the Bitcoin network’s user base/activity.
But there’s a slight catch…
One wallet does not equal one user. A user can have many wallets.
What matters here is the trend of the chart.
Increasing number of addresses: increasing adoption levels 📈
Decreasing number of addresses: indicates users are selling their entire balance or consolidating wallets 📉
As of today there are 52,523,537 addresses holding at least a little Bitcoin.
Over the course of 2024, this metric increased by 807,175 wallets.
However…
You may have noticed that growth has somewhat stalled.
It’s worth pointing out that this metric hit an all-time high of 53,180,054 all the way back in June of 2024.
And then “crashed” back down to 51,102,155 in July…
But since July, it’s been grinding higher and higher every single month to where we are today. (52,523,537 wallets)
Here’s the thing with this metric:
When looking at it, we like to zoom out and focus on the overall trend.
And that overall trend is without a doubt up and to the right.
CRACKING CRYPTO 🥜
Swiss chancellery approves proposal to include Bitcoin in national reserves. Switzerland’s Federal Chancellery has approved the formal submission of the “Bitcoin Initiative,” a proposed constitutional amendment that would require the Swiss National Bank to hold part of its reserves in Bitcoin.
Ether ETF net inflows hit $2.6B in December. They still lag BTC ETFs, which closed out 2024 with upwards of $35 billion in net inflows.
AI Agents Capture Attention as AiXBT, ai16z, and Virtuals Surge. AI agents are “revolutionizing markets by blending insights with community strategies, creating a smarter, more inclusive trading ecosystem,” says one analyst.
Experts unpack the future of bitcoin and its misconceptions. The panel's first point of discussion centered around the biggest misconceptions surrounding Bitcoin's future.
WHAT WE’RE READING 📚
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The Neuron (link) - AI trends and tools to keep you ahead
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