Here’s What You Missed During the Holidays

3 min readDec 30, 2024

Hello, MercuryTrade community!

We hope you had a wonderful holiday season. As we wrap up 2024, we know you’ve likely been spending quality time with your loved ones, which might have made it challenging to stay on top of the latest news. That’s why we’ve packed this newsletter with key updates from the past week and predictions for Q1 of 2025.

In this edition:

Record-breaking Bitcoin and Ether ETF inflows
Ethereum’s potential to outperform Bitcoin in January, sparking an altcoin season
Ongoing cybersecurity concerns
New IRS rules targeting DeFi

Weekly Market Recap and Insights

Spotlight on US-listed Bitcoin and Ether ETFs

This past year has been monumental for US-listed Bitcoin and Ether ETFs, tallying an impressive $38.3 billion in net inflows. BlackRock’s iShares Bitcoin Trust ETF (IBIT) is leading by a big margin, accounting for $37.31 billion of these inflows. Fidelity and ARK Invest rounded out the top performers, contributing $11.84 billion and $2.49 billion respectively. Despite a strong year, the final trading days saw $1.33 billion in outflows, with the largest single-day outflow of $188.7 million occurring on Christmas Eve.

Ethereum Poised to Outperform Bitcoin?

Ethereum’s relative strength against Bitcoin (ETH/BTC ratio) approaches critical levels. With a current ratio of 0.0356 and predictions of it surpassing 0.04 in January, Ethereum could spark an altcoin rally. Michael van de Poppe suggests Bitcoin might see outflows, further fueling Ethereum’s potential breakout.

Cybersecurity Concerns

Co-founder of Animoca Brands became the latest victim of social media account hacks. His account was exploited to promote a fake token linked to Solana memecoin. ZachXBT attributes this to a phishing attack that aligns with recent hacks, collectively netting over $500,000 in fraudulent gains.

Don’t click any links from untrusted sources. We have noticed fake emails from X are circulating so pay close attention to that.

IRS Defines DeFi Front-Ends as Brokers

The IRS finalized new rules for digital asset reporting, targeting decentralized exchange (DEX) front-ends classified as brokers. Starting in 2027, these platforms must disclose transaction proceeds and associated taxpayer details, a move aimed at increasing tax compliance in the crypto ecosystem. While not covering all DeFi applications, the focus on front-ends highlights the shifting regulatory landscape.

Weekly Event

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