Clapp Weekly: Bitcoin's price records, US reserve plan, MicroStrategy in Nasdaq 100
Price dynamics
BTC price
Bitcoin is taking a breather after new records on Tuesday, December 17. The surge was fueled by enthusiasm about a pro-crypto stance of the incoming administration, along with MicroStrategy's BTC purchase and Nasdaq 100 entry (see below). Most of the support came from institutions and ETF flows.
BTC rose quite steadily from below $98k. It surged close to $102k on Thursday, December 12, briefly slipped back to five digits, and rebounded over the weekend. On Monday, December 16, BTC hit $105.5k before new historic highs — yesterday's records of $107,822 and $108,135.
At $105,254, BTC is down 1.3% over 24 hours at +7.1% over the past week.
ETH price
Ether is also eyeing new all-time highs, showing strength after a rally above $4K. Spot ETFs have seen continuous inflows, while the exchange supply has reached just 9.2 million ETH, a share last seen 8.5 years ago. This year, it has dipped nearly 10%.
ETH's trajectory was slightly choppier — it held above $3.8k through the period, booking lower gains after rebounding from $3.6k. The price was shy of $4K on Thursday, December 12, before a brief retreat. Mirroring BTC, ETH hit $4,005.41 on Monday, December 16, and eventually ascended to $4,078.09.
After another dip, ETH is changing hands at $3,886.03, with a 24-hour change of -2.8% and +4.7% overall.
Seven-day altcoin dynamics
The altcoin market appears to be in full swing, supported by hopes for a Fed rate cut, expected today, and the start of an "altcoin season." The regulator is nearly certain to introduce a 25-basis-point reduction following the FOMC meeting.
Bloomberg analysts predict an influx of crypto ETFs next year after Paul Atkins replaces Gary Gensler as the SEC chair. The strongest candidates include LTC, HBAR, SOL, and XRP. Meanwhile, combo ETFs tracking both BTC and ETH will likely lead the charge.
Ahead of its Tuesday release, Ripple's new stablecoin, RLUSD (more below), attracted bids up to 836 XRP (over $2k) on on-chain marketplaces, reflecting a frenzy among early adopters. High-priced transactions for fractions of a new token are nothing new — speculators use them to capitalize on novelties.
Weekly gains are being led by HYPE (+90.4%), a gas token launched on November 29. It has already entered the top 30, booking another ATH, as the Hyperliquid L1 blockchain draws traders and developers. VIRTUAL (+74.7%) is the runner-up after a new historic high, supported by Virtuals Protocol's success in the AI and metaverse space.
Meanwhile, AAVE (+35.3%) has hit a three-year high, with 96% of holders now profitable, and BGB (+36.7%) keeps soaring. In stark contrast, the recent winner, SOS (-32.3%), is leading losses, trading behind KAS (-13.0%) and WIF (-13.6%).
SOS previously rallied on the anticipation of the official version of Solana Swap, a decentralised intelligent routing exchange. Other losses are in single digits, including GALA (-7.5%) and SHIB (-5.6%).
Cryptocurrency news
BTC surges on Trump optimism and MicroStrategy's Nasdaq inclusion
The BTC price hit a record $108,135 on Monday, December 16, after Donald Trump announced plans to create a US Bitcoin strategic reserve akin to the nation's oil reserves. The president-elect's move sparked excitement, signaling government endorsement.
In last week's CNBC interview, Trump reaffirmed his support for the reserve proposal. When asked about these plans, he said, "Yes, I think so," adding that "we don't want China or anybody else, not just China but others are embracing it, and we want to be the head."
The effort is spearheaded by Wyoming Sen. Cynthia Lummis, who introduced the Bitcoin Act in July. Her recent meeting with Trump's Treasury pick, Scott Bessent, also drove optimism about Bitcoin's future as a legitimate store of value. "Scott Bessent will be a champion for digital assets and a crucial ally in passing my Strategic Bitcoin Reserve," she wrote.
Investor optimism was further buoyed by MicroStrategy's inclusion in the Nasdaq 100 index. As noted by Reuters, the event should attract additional investments into the software provider turned self-described Bitcoin development company.
Expanding its holdings, MicroStrategy acquired 15,350 BTC between December 9 and December 15 for roughly $1.5 billion at an average price of $100,386 per BTC. The overall average purchase price is $61,725 per coin. At present, MicroStrategy holds a total of 439,000 BTC.
The corporate whale will officially enter the Nasdaq 100 on December 23. This inclusion may trigger at least $2.1 billion in institutional buying as ETFs adjust their portfolios. Meanwhile, Bitcoin has surged approximately 150% YTD.
Ripple launches RLUSD stablecoin targeting institutions
Ripple officially launched RLUSD, its USD-pegged stablecoin, on December 17. Fully backed by US dollar deposits, government bonds, and cash equivalents, it was greenlit by the New York Department of Financial Services (NYDFS) a week prior.
RLUSD focuses on payments and remittances for businesses and institutions, not speculative trading. It aims to rival USDT and USDC, leveraging Ripple’s $70 billion payments network. Faster transactions, tokenized asset trading, and innovation in DeFi mark a major milestone for Ripple.
Initially, RLUSD will be available on platforms like Uphold, MoonPay, Archax, and CoinMENA, with expansion to major exchanges including Bitso, Bitstamp, and Bullish, shortly afterward. Due to the MiCA (Markets in Crypto-assets) regulations, RLUSD is currently unavailable in the EU, but the issuer is exploring ways to bring it to the region.
The stablecoin will be key to Ripple’s payment and cross-border settlement systems, with integration into its digital payment protocol expected by early 2025. Monthly independent attestations of RLUSD reserves will underscore Ripple’s focus on transparency. It also holds an NYDFS-issued limited-purpose trust charter.
The RLUSD project is guided by an advisory board featuring financial experts like Raghuram Rajan and Sheila Bair. While reiterating the stablecoin’s $1 peg, CTO David Schwartz has acknowledged potential initial price fluctuations due to limited supply.
