Hedge Funds Capitalize on Bitcoin Surge

Cryptocurrency-focused hedge funds recorded extraordinary performance in November, achieving 46% gains and elevating their 2024 returns to an impressive 76%, as per Hedge Fund Research. This far exceeds the broader hedge fund industry’s average annual return of 10%. Bitcoin played a pivotal role, with its price reaching a record $108,000 on December 17.

In related news, Riot Platform secured $594.4 million in funding during mid-December, one of the largest capital raises within the Bitcoin ecosystem this year.

NFT Market Resilience Amid Crypto Fluctuations

Despite market volatility, the NFT sector showed resilience, with total sales volume reaching $302.2 million, according to CryptoSlam. However, speculative trading continues to carry risks. One trader, attempting to front-run the Pudgy Penguins (PENGU) airdrop on December 17, suffered a staggering loss. After purchasing the token at an overinflated $14 trillion capitalization, their $10,000 investment dwindled to under $3 within minutes.

Strategic Bitcoin Reserve Proposal

Michael Saylor, MicroStrategy’s founder, proposed the creation of a Bitcoin reserve to generate wealth for the U.S. Treasury. Speaking on Bloomberg Television’s Open Interest show, he estimated this could produce between $16 trillion and $81 trillion, potentially alleviating national debt. Saylor also expressed his readiness to advise President-elect Donald Trump on shaping a comprehensive digital assets policy.

Tether’s AI Ambitions and Security Challenges

Stablecoin giant Tether, valued at $140 billion, revealed plans to enter the artificial intelligence space by Q1 2025, as announced by CEO Paolo Ardoino. Meanwhile, security breaches plagued the industry. Vivek Ramaswamy’s X account was compromised, leading to the dissemination of false claims regarding a U.S. government partnership with the stablecoin USUAL.

Protocol Updates and Innovations

Ripple launched its RLUSD stablecoin on major exchanges following its December 16 debut. Additionally, the Avalanche Foundation introduced the Avalanche9000 mainnet upgrade, promising a 90% reduction in deployment and C-Chain fee costs.