Market Wrap: Monday, December 9th, 2024 

The crypto market continues to see wild swings, with Bitcoin surging past $100,000 last week, plummeting to $92,000 on Thursday evening in a dramatic flash crash, and then climbing back up to just under $100,000. The sharp decline was driven by aggressive profit-taking and cascading liquidations, resulting in $1.1 billion being wiped out in just 24 hours.  

We have previously noted the rising activity in crypto derivative markets, with open interest in these positions steadily increasing since the November presidential election. 

ETH ETFs saw significant growth last week, attracting around $1.17 billion in inflows. Meanwhile, BTC ETFs outperformed, bringing in approximately $2.7 billion between December 2nd and 8th. 

Crypto Treasury Strategies Evolve: XRP Joins the Mix Alongside BTC

Crypto treasury strategies are diversifying as companies expand their holdings beyond Bitcoin (BTC) to include XRP. Read this explainer to learn the basics of XRP.

Notably, Worksport, a U.S.-based manufacturer of innovative truck accessories, and BC Bud Co., a Canadian producer of premium wellness products, both revealed plans to incorporate XRP into their corporate treasury portfolios during early December.  

According to a December 5th press release, Worksport’s board has approved the purchase of up to $5 million in Bitcoin (BTC) and XRP, capped at 10% of its excess operational cash. This move highlights the company’s confidence in cryptocurrency as a hedge against inflation and a store of value, aligning with the growing global adoption of digital assets. 

BC Bud Co is also embracing cryptocurrency. CEO Brayden Sutton announced an initial $250,000CAD purchase of XRP as part of their corporate treasury diversification strategy. In a press release, Sutton stated:  

"We are exploring innovative ways to protect and grow our capital in today’s financial environment. Ripple’s advancements in legal and market legitimacy make XRP a compelling addition. With global asset managers filing for spot XRP ETFs and increasing optimism tied to pro-crypto policies under Trump’s administration, we see Ripple as a strategic opportunity to align with financial trends and deliver long-term value for our shareholders."

XRP has experienced a remarkable resurgence, climbing from $0.55 to $2.90 (+325%) as crypto-friendly developments unfold. Optimism surged with Trump’s nomination of Paul Atkins to succeed Gary Gensler as SEC Chair. Atkins, a seasoned financial markets expert and advocate for crypto, is widely seen as a transformative pick. News of his nomination pushed Bitcoin past the $100K mark this week.  

Ripple Labs, which leverages blockchain technology for faster, cheaper cross-border payments, is gaining momentum after years of legal challenges under Gensler’s SEC. The December 2020 lawsuit against Ripple alleged XRP was sold as an unregistered security. While a July 2023 ruling favored Ripple, the SEC’s appeal and pending fines continue to weigh on the company. For more details, check out Investopedia’s SEC v. Ripple explainer.  

Excitement continues to build, with Ripple CEO Brad Garlinghouse set to appear on CBS' 60 Minutes. The market is drawing parallels to Elon Musk’s DOGE-fueled rally after his own media spotlight. Could XRP be having its moment? Stay tuned! 

 MicroStrategy announced the acquisition of an additional 21,550 bitcoins between December 2 and December 8, for a total cost of approximately $2.1 billion in cash. The average purchase price was $98,783 per bitcoin. With this latest purchase, the company’s total bitcoin holdings have grown to approximately 423,650, acquired at a combined cost of $25.6 billion, averaging $60,324 per coin. 

The Macro Week Ahead:  

The upcoming week brings several key events, including interest rate decisions from the RBA, BoC, and ECB, alongside the highly anticipated US CPI report for November. 

Financial Advice Disclaimer: Nothing in this article constitutes professional or financial advice, performance data or any recommendation that any specific cryptocurrency, portfolio, index, investment product, transaction or investment strategy is suitable for any specific person. You assume the sole responsibility of evaluating the merits and risks associated with all financial decisions and should seek the advice of a registered financial advisor when in doubt.