The memecoin ecosystem has experienced a significant decline in December, with its total market capitalisation dropping by nearly 30%. This translates to a loss of approximately $40 billion, indicating a slowdown in the popularity and demand for meme-based tokens.
According to CoinMarketCap data, the memecoin market cap stood at $120.14 billion on 1 December. It peaked at $137.06 billion on 9 December before plummeting to $92.67 billion by 23 December. This represents a 32.38% decrease in value over the month. As of today, the market cap has slightly recovered to $98.72 billion, but it remains 18% lower than its performance at the start of December.
Bitcoin Price Predictions for 2025
Blockware Solutions, a crypto mining firm, has delivered its Bitcoin price predictions for 2025, forecasting scenarios ranging from a modest increase to a significant surge. The predictions hinge on various factors, including Donald Trump’s Strategic Bitcoin Reserve (SBR) plan and Federal Reserve policies.
Meme tokens’ overall market capitalization. Source: CoinMarketCap
In the “bear case” scenario, Bitcoin’s price could rise by 58%, reaching $150,000 from its current price of $94,981. This could occur if Trump fails to implement the SBR plan or if the Federal Reserve reverses course on expected interest rate cuts. Additionally, a wave of selling by long-term Bitcoin holders (those holding BTC for over 155 days) could contribute to this outcome.
Under the “base case” scenario, Blockware predicts Bitcoin could reach $225,000. This assumes that the US government successfully establishes a Strategic Bitcoin Reserve, the Federal Reserve cuts interest rates as anticipated, and corporate adoption of Bitcoin continues at its current pace.
The “bull case” scenario projects a potential price of $400,000. This optimistic prediction requires all factors—the SBR plan, Federal Reserve rate cuts, and increased corporate adoption—to align favorably.
El Salvador’s Growing Bitcoin Holdings
El Salvador has solidified its position as one of the leading sovereign Bitcoin holders, with over 6,000 BTC in its reserves. As of 28 December 2024, this stash is valued at approximately $569 million. The Central American nation now joins countries like the United States, China, the United Kingdom, Ukraine, and Bhutan in accumulating substantial Bitcoin reserves.
El Salvador’s total Bitcoin holdings. Source: El Salvador Bitcoin Office
Notably, El Salvador has adopted a strategy of purchasing one Bitcoin per day for its reserve. However, in a recent move, the country bought 11 BTC in a single day, worth around $1 million. This followed the signing of a $1.4 billion deal with the International Monetary Fund (IMF).
As part of the IMF agreement, El Salvador scaled back some of its Bitcoin policies, including the mandatory requirement for businesses to accept Bitcoin as legal tender. Despite this, the country continues to pursue its Bitcoin accumulation strategy aggressively.
