Ethereum has successfully activated the Fusaka upgrade on mainnet, marking its second major network enhancement in 2025.
With PeerDAS now live, ETH has surged past the critical $3,200 resistance zone, and traders are watching whether the rally can sustain and even extend further.
Fusaka Goes Live
Ethereum confirmed the Fusaka mainnet activation on December 3 at 22:04 UTC. The upgrade introduces PeerDAS technology, which unlocks up to 8x data throughput for rollups, raises the gas limit from 45 million to 60 million units, and adds R1 curve support for improved user experience. Currently, Ethereum processes between 1.3 and 1.8 million transactions daily and holds over $73 billion in value locked in DeFi.
For L2 and Layer 2 rollups, Fusaka is even more relevant. PeerDAS increases the available space for blobs and prepares gradual capacity increases in future forks focused solely on data. The goal is clear: to maintain very low fees on networks like Arbitrum, Base, or Optimism, even if demand continues to grow.
Community members will monitor the network for issues over the next 24 hours.
Fusaka is live on Ethereum mainnet!
– PeerDAS now unlocks 8x data throughput for rollups – UX improvements via the R1 curve & pre-confirmatons – Prep for scaling the L1 with gas limit increase & more
Community members will continue to monitor for issues over the next 24 hrs.
ETH is trading at $3,231, up 7.38% over the last 24 hours. The price has cleared the $3,154-$3,200 supply cluster that marked strong resistance, a move that traders see as a bullish signal.
The pattern echoes the pre-Pectra phase in May 2025, when Ethereum surged 56% in just seven days following that upgrade. Technical charts show a classic bullish divergence: while price marked a lower low between November 4 and December 1, RSI printed a higher low—a setup that often signals weakening selling pressure.
On-chain data supports the bullish case. Addresses holding at least $1 million in ETH have increased from 13,322 to 13,945, representing roughly $623 million in additional accumulation by large holders.
Key Levels to Watch
With the $3,200 zone now cleared, the next target sits at $3,653. If the rally extends 56% from Pectra, a move toward $4,262 comes into view.
On the downside, $3,200 now serves as the first support to hold. A break below $2,996 would weaken the bullish structure, exposing $2,873 and potentially $2,618.
For now, sustaining above $3,200 will determine whether Fusaka marks the beginning of a new bullish phase.
From Nov. 24 to Dec. 2, 2025, JPMorgan launched leveraged notes tied to BlackRock’s Bitcoin ETF, Vanguard reversed its crypto ban, and Nasdaq quadrupled IBIT options limits. Three moves in nine days created one outcome: Bitcoin’s absorption into traditional finance and institutions.
Analyst Shanaka Anslem Perera describes that this rapid convergence marked a foundational change in how institutional capital accesses digital assets. Leading banks and asset managers expanded crypto offerings, distribution channels, and regulatory frameworks, redefining Bitcoin’s role in global finance.
The November Convergence: Coordinated Infrastructure Expansion
Traditional finance long observed Bitcoin from a distance. By late 2025, however, digital asset infrastructure reached a tipping point. The transformation began with SEC approval of spot Bitcoin ETFs in January 2024, offering a regulated path for institutional investment.
JPMorgan’s Nov. 24 filing detailed leveraged structured notes providing up to 1.5x returns on BlackRock’s iShares Bitcoin Trust ETF through 2028. These securities targeted sophisticated investors seeking amplified exposure while retaining legal protections. Notably, the notes exposed investors to significant downside, risking principal loss if IBIT declined by roughly 40 percent or more.
That same week, Nasdaq announced on Nov. 26 that it would raise IBIT options position limits from 250,000 to 1,000,000 contracts. This acknowledged the growth in both market capitalization and volume, supporting the need for volatility-hedged products for institutional portfolios. As Perera’s structural analysis noted, broader options infrastructure allowed institutions to manage Bitcoin volatility, aligning digital assets with standard risk controls.
On Dec. 2, Vanguard completed the picture. The world’s second-largest asset manager reversed its long-standing opposition and opened Bitcoin and crypto ETFs to clients holding around $11 trillion in assets. Vanguard’s move, made during a market correction, signaled strategic timing rather than speculative chasing.
This turning point coincided with a wave of retail exits. Bitcoin ETF redemptions soared as individual investors sold amid price drops. Meanwhile, institutional capital took the other side. Abu Dhabi Investment Council and similar sovereign entities increased their Bitcoin allocations as retail sentiment reversed.
Bank of America authorized 15,000 financial advisers to allocate Bitcoin to wealth clients starting Jan. 5, 2026. Advisers recommended a 1 to 4 percent exposure for clients able to stomach volatility, highlighting four ETFs: the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, the Grayscale Bitcoin Mini Trust, and the BlackRock iShares Bitcoin Trust. This guidance marked a significant shift for an institution with $2.67 trillion in assets across more than 3,600 branches.
“2024: Vanguard CEO says they will not offer Bitcoin ETFs 2025: Vanguard offers Bitcoin ETFs to 50 million clients Vanguard and JPMorgan have bent the knee,” eOffshoreNomad posted.
Similarly, BlackRock recommended allocating up to 2 percent of portfolios to Bitcoin, citing risk levels comparable to those of the “Magnificent 7” technology stocks. The unified approach across institutions suggested coordinated messaging, if not formal cooperation. Advisers received consistent direction on allocations, risk communication, and client selection from competing firms.
Goldman Sachs took a different approach by acquiring Innovator Capital Management for about $2 billion. This gave Goldman instant distribution and compliance pathways for crypto products, saving years of internal development and providing an established network.
MSCI Index Exclusion: Eliminating Competing Models
While financial institutions expanded ETF infrastructure, other models faced obstacles. On Oct. 10, 2025, MSCI announced a consultation to exclude firms with substantial digital asset treasury holdings from major indices. The preliminary list included Strategy Inc., Metaplanet, and similar companies that pioneered corporate treasury Bitcoin adoption.
The proposal targeted companies in which Bitcoin or other digital assets accounted for an outsized share of the balance sheet. Removal from the MSCI Global Investable Market Indices would force these firms out of passive investment funds and major benchmark-tracking ETFs. The consultation is open until Dec. 31, 2025, with final decisions coming by Jan. 15, 2026.
The timing was notable. Strategy Inc., for example, attracted those wanting Bitcoin exposure without financial intermediaries or ETF fees. But, as MSCI proposed exclusion, major banks introduced new fee-generating ETF options. This created pressure on alternative exposure approaches.
Regulatory clarity accelerated institutional adoption through 2025. Laws such as the GENIUS Act and related orders defined the treatment of digital assets and reduced legal risks for large financial firms. These rules aligned digital assets with existing securities compliance, encouraging institutional entry.
Fee-Based Capture and the End of Alternative Exposure
The nine-day convergence was about more than new products. It firmly established Bitcoin as a fee-earning asset class for traditional finance. Leveraged notes, options, and ETF allocations each bring recurring revenue, while direct treasury and self-custody models now face obstacles such as index exclusions and higher regulatory requirements.
With expanded options, institutions can now manage volatility, making Bitcoin suitable for risk-parity portfolios and mandates with strict limits. The infrastructure shift means Bitcoin now acts as a portfolio component, not just a speculative asset. Yet, this shifts price discovery to derivatives, not spot trading.
The institutional system mirrors other asset classes. Allocations and risk disclosures are harmonized. Licensed advisers guide clients, and products feature standardized fees and messaging. Bitcoin, initially meant to circumvent the system, is now absorbed into the very architecture it once challenged.
Charles Schwab’s plan to launch spot crypto trading in 2026 is shaping up as one of the most consequential moves from a major US brokerage.
The firm, which oversees more than $12 trillion in client assets, intends to offer Bitcoin and Ethereum trading across its platforms after internal testing and a limited pilot phase.
Charles Schwab Will Bring Mainstream Investors To Crypto
Schwab’s entry marks a shift in how traditional brokers approach digital assets. The company already offers indirect exposure through crypto-thematic ETFs, but spot trading brings cryptocurrencies into the same environment as stocks, bonds, and retirement accounts.
This could change how mainstream investors access crypto.
Charles Schwab CEO on crypto…
“It’s a topic that’s of high engagement.”
Schwab clients own *20%* of all crypto exchange traded products.
The announcement also highlights a strategic push to consolidate investor activity. Millions of Schwab customers currently hold traditional assets and use external exchanges for crypto.
Bringing those functions under one account reduces friction and strengthens Schwab’s footprint across asset classes.
Schwab’s move introduces a structural challenge for US crypto exchanges. The brokerage is known for zero-commission stock and ETF trading.
If it extends the same low-fee approach to crypto, it undercuts the core revenue model of companies like Coinbase and Kraken.
The new Grayscale spot Chainlink ETF did really solid volume on Day one of $13m and looks like it could see same again today (way more than it ever traded as a trust). Also $41m in first day flows. Another insta-hit from the crypto world, only dud so far was Doge but it's still… pic.twitter.com/wlCemHxkQP
Crypto exchanges rely heavily on trading fees. Coinbase’s retail fees often exceed 1%, and even advanced platforms charge up to 0.60%.
Schwab can afford to price well below that because it generates revenue from multiple channels, including interest income, advisory services, and order execution. Crypto exchanges do not have the same diversification.
Moreover, Schwab offers a regulatory environment that exchanges cannot match. Client assets sit within long-standing SEC and FDIC oversight frameworks.
This level of institutional trust appeals to many retail and older investors who remain wary of specialized crypto platforms.
ETFs Make Pricing Pressure Harder
The fee pressure intensifies because investors can already trade Bitcoin ETFs for free on Schwab and other brokerages.
These ETFs also have extremely tight spreads, often around 1–2 basis points. For Schwab to justify direct crypto trading, it must offer low fees that compete with near-free ETF execution.
Direct ownership still has an advantage because it avoids ETF expense ratios. However, that benefit matters only if trading costs remain low. This dynamic pushes Schwab toward aggressive pricing and, by extension, forces exchanges to respond.
A New Phase for US Crypto Markets
Schwab’s entry reflects how traditional finance is encroaching on digital asset territory. It places price, trust, and product-access pressure on crypto-native firms at a time when markets are already shifting toward regulated structures.
The full impact depends on Schwab’s final fee model and custody design.
Yet early signs point to significant competitive pressure ahead, especially for exchanges depending on retail trading spreads.
Michael Saylor is once again at the center of Crypto Twitter’s scrutiny after new regulatory filings revealed that Strategy (formerly MicroStrategy) recently spent $27 million on a deposit for a corporate aircraft.
The disclosure has fueled a wave of criticism from users who argue that the purchase reflects misplaced priorities during a period of sharp volatility for both Bitcoin and Strategy’s stock.
According to MicroStrategy’s Form 10Q filed on November 3, the company’s net cash used in investing activities rose sharply year-over-year.
The filing revealed that for the nine months ending on September 30, Strategy made a $27 million deposit on a new corporate aircraft.
It also disclosed $19.38 billion in Bitcoin purchases funded through convertible notes, stock offerings across its STR series, and ongoing ATM programs.
Despite $MSTR being down 55% in the last year, @saylor needs a new jet.
The 10Q notes two major cash uses of cash in their investing activities
Although companies often use corporate funds for executive travel, critics argued that the context is especially important for Strategy.
The firm no longer resembles a traditional product-driven software company. Instead, it functions as a vehicle tied to Bitcoin’s volatile price movements.
With MSTR down about 30% over the past month, some investors questioned whether a multimillion-dollar aircraft aligns with its stated Bitcoin-first strategy.
Investor Confidence Tested
Crypto Twitter reacted sharply, arguing that shareholder capital should focus on increasing the firm’s Bitcoin position rather than expanding executive privileges.
Users expressed frustration that the jet deposit came alongside billions in financing tied directly to new equity issuances. Others suggested the timing of the purchase undermined confidence in the company’s alignment with its retail investor base.
Strategy supporters countered that corporate aircraft are common for firms with global operations and high-volume executive travel requirements. They also noted that the $27 million deposit represents a small fraction of the capital committed to Bitcoin accumulation during the same nine-month period.
Ok you named companies that actually have real product and services, and extremely profitable.
Michael Saylor and Strategy are on the verge of bankruptcy, facing major losses from BTC, and about to be forced to sell.
Maybe use your brain for once instead of relying on AI.
Still, the dispute reflects a broader disagreement over how a Bitcoin-focused public company should balance its operational needs with public optics.
As Bitcoin continues to fluctuate, the episode highlighted how closely Saylor’s decisions are tied to market sentiment, especially during periods of heightened volatility.
The debate also revealed how investor expectations shift when a company positions itself almost entirely around a single macro-sensitive asset.
In crypto, perhaps being early can really pay off. This sure seems to be the case for Ripple Labs, the San Francisco-based blockchain firm that is now worth over $40 billion.
And after years of tangling with the SEC, the company is experiencing much fairer weather in the regulatory climate with Trump in charge. Since the US presidential election, the price of XRP, the altcoin Ripple launched way back in 2012, has stayed above a $2 price point not seen since the blockchain bull run of 2017.
But is there an actual use case for XRP?
The XRP Payments Corridor
Hedy Wang, CEO of crypto liquidity provider Block Street, says Ripple’s foothold in America may grow now, but it already has traction in other parts of the world, too.
“In the US it’s been more constrained because of the whole SEC saga, so interest skewed retail and offshore venues,” Wang told BeInCrypto. “Historically you see decent XRP traction in Japan, parts of East Asia, and some remittance-heavy corridors like the Philippines or Latin America via partners.”
What can’t be denied is that investors have been grabbing up XRP over the past year. Since Trump was elected in November 2024, the price of XRP has gone from $0.50 to $2.15, a 330% increase.
The price performance of XRP since November 2024. Source: CoinGecko
“Bitcoin is viewed as ‘digital gold’, Ethereum is known for smart contracts,” noted certified public accountant Gregory Monaco, who runs an eponymous CPA firm. “XRP gets its value from cross-border payments.”
Monaco pointed to Ripple’s 300 financial partners in 45 countries and $15 billion in annual cross-border payments as key indicators of its use case.
It’s possible, then, that a company behind a cryptocurrency, like Ripple, can put in the real manpower and work to achieve an important payments corridor.
“If Ripple keeps stacking licenses and bank/fintech integrations, XRP can survive as niche financial plumbing,” added Block Street’s Wang.
Cross-Border Is Not So Simple
The term “cross-border payments” may sound like a lot of corporate jargon. But ask anyone who has sent money from one country to others, and it is obvious this is a problematic process. It can be slow. It can be expensive.
Additionally, currency exchanges are required. Cryptocurrencies like XRP are borderless, global, and cheap. There’s value in reducing TradFi’s reliance on regular payment systems.
Working at Airbnb helped Coinbase’s Armstrong understand cross-border payments. Source: X
Still, ‘hopium’ alone doesn’t necessarily mean that XRP’s valuation is that closely tied to its payments use case, noted Paul Holmes, a researcher at BrokerListings.
“XRP is still heavily a speculative asset,” Holmes told BeInCrypto. “With crypto as a whole, the valuation isn’t supported by its own income stream, so it’s a function of liquidity production and reallocation from other stores of value.”
It may be that crypto investors and OG whales are simply accumulating more XRP because Ripple Labs, as the largest contributor to the cryptocurrency, appears to be a fairly well-performing crypto firm.
Recently, UK-based CoinShares backed away from launching a US XRP ETF product, which likely would have increased demand from investors who stick to the public markets.
“CoinShares likely walked away because the SEC isn’t giving XRP regulatory clarity that it’s ETF-ready,” said BrokerListings’ Holmes.
It’s important to keep in mind that CoinShares also decided not to launch ETFs on Solana or Litecoin either, so it’s not just XRP that there’s some hesitancy from them to launch these crypto-backed products.
“XRP is already being used to move value between currencies, stablecoins, and across the growing set of tokenized financial assets on the network,” said Raquel Amanda, Senior Communications Lead for Ripple. “As the ecosystem grows, the need for fast and neutral settlement increases, and we see XRP naturally continuing to fill that role.”
CoinGecko’s data pegs the price of XRP appreciating by over 36,000% since it was first listed on exchanges starting August 3, 2013.
All-time price performance data for the XRP cryptocurrency. Source: CoinGecko
The irony of a speculative asset being used for payment isn’t lost on BrokerListings’ Homes, however.
“On-chain activity shows that there are 50-55 million XRP transactions per month, and a majority of those are payments,” he noted. “At the same time, XRP is still used as a speculative asset for many rather than utility and can’t be expected to be a reliable store of value.”
A Rip to the Moon?
While it may seem confusing to use a volatile asset like XRP as a payment rail, it’s important to remember that many cryptocurrencies, like XRP, are highly divisible and fast.
XRP is essentially ‘programmable money.’ Code can be implemented to use XRP in its required amounts based on its current trading price.
And for high-end institutional payments, which is what XRP is used for, it doesn’t really matter what the back-end looks like as long as money reaches its destination.
While stablecoins may be popular for consumer use and trading, XRP serves as a sort of logistical money mover for companies that need to transfer value globally.
This would explain why, according to the CPA Monaco, 58% of activity on the network comes from just ten wallets.
That use case, in addition to Ripple Labs’ now-dropped fight with SEC, is likely the reasoning for a bullish narrative.
A listing of already-live XRP ETF products on the public markets.
In May 2025, Ripple Labs agreed to a $50 million satisfaction of judgment in its dispute with the SEC, ending a years-long quagmire that likely stymied XRP for some time.
And XRP doesn’t necessarily need a CoinShares ETF, as there are already nine live products on the market with total Assets Under Management (AUM) of $1.1 billion.
So yeah, the XRP Army, which is what fervent investors in the chain like to call themselves, sees a lot of reasons to be hopeful for the future and a lot less risk to the downside – more than ever before.
Bitcoin continues to trade near $92,000 after this week’s rebound, yet a growing cluster of on-chain indicators now suggests the market has already slipped into a bearish cycle.
This stands in sharp contrast to recent predictions from market leaders like Tom Lee and Arthur Hayes, who argue Bitcoin could still close the year significantly higher.
Bullish Predictions Clash With Data
Lee recently softened his earlier $250,000 target and now expects Bitcoin to remain above $100,000 into year-end.
CryptoQuant’s Bull Score Signals composite shows why. During previous bull phases, including late 2023 and early 2025, the model displayed broad green conditions across valuation, demand growth, network activity, and stablecoin liquidity.
Since mid-2025, these components have turned consistently red. MVRV Z-score has flipped into overheated territory, network activity has weakened, and stablecoin buying power has declined.
The pattern resembles the early stages of the 2022 downturn rather than a continuation of the 2025 rally.
Also, the Bull Score Index, offers a more granular view. Bitcoin spent the first half of 2025 in bullish territory with readings above 60.
By late August, the score began falling sharply, dropping below 40 in October and remaining flat through November despite short-term price volatility.
The latest reading sits in the 20–30 range, deep within bearish conditions. The bounce from last week’s lows has done little to shift the underlying cycle signals.
Bitcoin Bull Score Index
Another, the Bull Score mapped to price, reinforces this view. The model has transitioned from green “extra bullish” signals earlier this year to persistent red “bearish” and “extra bearish” readings across September, October, and November.
Even the recent recovery toward $92,000 is categorized as a bearish-zone rally, mirroring distribution phases seen in previous cycle tops.
Bitcoin Bull Score Index – Mapped to Price
Momentum Metrics Strengthen the Bitcoin Bearish Case
Market momentum indicators now echo the same cycle shift. RSI remains neutral around 50, signalling a lack of conviction behind this week’s advance.
While MACD recently flipped positive, the histogram already shows weakening amplitude. This indicates the move lacks sustained momentum.
Additional signals deepen the caution. Short-term RSI spikes above 70 in recent days failed to hold, showing sellers remain active during every attempt at a breakout. CMF’s inability to return to positive territory highlights ongoing distribution rather than accumulation.
Meanwhile, MACD’s fragile crossover mirrors conditions seen during past bear market rallies, where momentum improves briefly before rolling over.
Taken together, on-chain, liquidity, and momentum indicators point to a structural shift into a bearish cycle.
If Strategy holds its 650K BTC this cycle (or sells only a little), we would not see another -65% drawdown like in 2022.
We are about -25% from ATH now, and even if a bear cycle comes, the downside would likely be smaller and look more like a broad sideways range.
While Tom Lee and Arthur Hayes argue that Bitcoin could regain its earlier strength, current market data suggests the opposite.
Unless stablecoin liquidity, network activity, and demand growth rebound decisively, Bitcoin’s recent recovery is more likely a temporary bounce than the beginning of a new upside phase.
A lawsuit against Binance is testing the extent to which crypto platforms can be held liable for real-world harm. Filed by families of victims of the October 2023 attacks against Israel, it arrives amid continued backlash over the recent presidential pardon of founder Changpeng Zhao (CZ).
More than a new legal headache, the lawsuit is being watched as a potential blueprint for a shift from regulatory fines to high-stakes private liability tied to terrorism financing.
Terror Financing Claims Hit Binance
The case, brought by more than 70 families in a US federal court last week, accuses Binance of knowingly enabling transactions for Hamas, Hezbollah, Iran’s Islamic Revolutionary Guard Corps, and other US-designated terrorist groups.
The plaintiffs, mostly relatives of those killed or injured in the October 7 attacks, argue Binance was not merely exploited. They say the platform structurally enabled terrorist financing at scale.
“For years, Defendants knowingly, willfully, and systematically assisted Hamas… and other terrorist groups to transfer and conceal the equivalent of hundreds of millions of US dollars through the Binance platform in support of their terrorist activities. This assistance directly and materially contributed to the October 7 Attacks and to subsequent terrorist attacks,” read the complaint.
Earlier government investigations have focused on Binance’s anti-money laundering failures. However, this lawsuit reframes the narrative, arguing that CZ’s stewardship of the platform has systemically contributed to real-world violence.
The lawsuit also arrives at a consequential moment for the company.
Just posted: the pardon that Trump issued to @cz_binance on Tuesday.
It wipes away CZ's conviction for failing to maintain an effective anti-money laundering program, which prosecutors said allowed Hamas, Al Qaeda & ISIS to move money using @binance. https://t.co/ptbRCzxhd3pic.twitter.com/1B9tKnZG6P
The case also arises two years after Binance’s 2023 settlement with US authorities, which included a $4.3 billion penalty. The company admitted to violating the Bank Secrecy Act and US sanctions laws. CZ pleaded guilty, stepped down as CEO, and served a four-month prison sentence.
While CZ’s pardon suggested Binance was in the clear, the lawsuit shows neither he nor the company is insulated from civil liability.
Despite Criminal Leniency, Civil Claims Intensify
The families’ lawsuit builds on facts already established by US criminal enforcement, giving the plaintiffs a strong legal foundation.
Because Binance has already admitted to sweeping violations of the Bank Secrecy Act and US sanctions laws, the burden of proof is significantly lower. The families argue Binance embedded these flaws in its core operations, not in isolated compliance failures.
Rather than leaning on broad allegations, the complaint reportedly names specific wallets, laundering intermediaries, and transaction flows tied to designated terrorist groups.
In its structure, the case closely mirrors the way federal prosecutors assemble complex criminal indictments. The difference is that this same evidentiary framework is now being deployed by private plaintiffs under US anti-terrorism statutes.
Those laws allow victims of terrorism to pursue civil damages against entities accused of providing material support, even indirectly. This legal pathway transforms Binance’s past regulatory violations into the foundation of a potentially massive civil liability case.
For years, crypto enforcement followed a cycle: regulators investigated, companies paid fines, executives stepped aside, and markets moved on. Civil litigation tied directly to terrorism financing breaks that rhythm.
Unlike regulatory settlements, which cap financial exposure and close legal chapters, terror-related civil cases can involve multiplied damages and years of continuing risk.
A New Enforcement Class?
For the crypto industry, the implications extend far beyond one exchange or one courtroom. If the case survives early dismissal and proceeds to discovery, it could lead to new scrutiny of how centralized platforms monitor, flag, and freeze high-risk activity.
More significantly, a win for the families could establish that private plaintiffs—not just regulators—now pose one of the most serious financial threats to crypto businesses.
In that scenario, compliance failures would no longer result in fines alone. They would become long-tail liabilities that follow platforms for years to come.
Ethereum price has climbed over 13% since December 1, helped by a broader market recovery and growing optimism ahead of today’s Fusaka upgrade, which improves how efficiently the network processes transactions. ETH is still down more than 17% over the past month, but the recent bounce and several technical signals look similar to what happened just before the Pectra upgrade in May 2025, when Ethereum rallied 56% in seven days.
The question now is simple: can Fusaka trigger that kind of move again?
Conditions Look Similar to Pectra — And Big Buyers Are Returning
During the Pectra phase (May 6–13), Ethereum surged 56% after flashing standard bullish divergence. That pattern occurs when price makes a lower low, but RSI (Relative Strength Index, a momentum meter from 0–100) makes a higher low. It often signals that sellers are losing control even as the chart still looks weak. More of a trend reversal.
P.S.: The Pectra upgrade dropped on May 7, 2025.
The same setup is forming now.
Between November 4 and December 1, ETH made a lower low, but RSI formed a higher low. That mirrors the exact structure that appeared before the Pectra move.
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The number of Ethereum addresses holding at least $1 million has risen from 13,322 to 13,945, a 4.68% increase. Since each wallet holds a minimum of $1 million, this reflects at least $623 million in added capital entering the network’s top tier of holders. Big buyers entering ahead of a major technical upgrade is historically a constructive sign.
Together, the divergence pattern and fresh large-wallet inflows build a case that Fusaka could act as a catalyst — if the key breakout level is cleared.
One Cost-Basis Cluster and One Ethereum Price Level Decide Everything
Whether ETH shows a Pectra-style extension depends on clearing a single supply wall. Glassnode’s Cost Basis Distribution reveals the heaviest near-term supply cluster between $3,154 and $3,179, where about 2.76 million ETH sits. This aligns almost perfectly with the chart’s resistance at $3,166 (a strong resistance and support line).
• show buyers have almost absorbed the largest supply zone
• open room for a push toward $3,653
If momentum mirrors the Pectra structure, a 56% extension from December’s lows would target roughly $4,262, which also matches a strong historical ceiling.
On the downside, ETH’s structure weakens below $2,996. Losing that range exposes $2,873, and if selling pressure expands, $2,618 becomes the deeper support to watch for the Ethereum price.
Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee to read how the Bitcoin mining sector is changing. Skyrocketing costs, collapsing fees, and the rise of AI are forcing miners to rethink their playbook, turning once-stable operations into a battleground for next-generation compute power.
Crypto News of the Day: AI Takes Over Bitcoin Mining Racks as Costs Explode and Profitability Craters
The CoinShares Bitcoin Mining Report Q4 2025 reported that the sector has hit its breaking point. Production costs have surged to all-time highs, hash price has collapsed, and artificial intelligence (AI) is now outbidding miners for their own infrastructure, triggering the most dramatic structural shift the sector has ever faced.
The industry entered Q2 2025 with a brutal new reality:
The average cash cost to mine one BTC among public miners jumped to approximately $74,600,
All-in costs soared to $137,800.
Transaction fees, once a buffer for miner revenue, fell below 1% of block rewards in May and June, the weakest contribution since the 2024 halving.
Yet even as margins collapsed, the Bitcoin network continued to climb, smashing through 1 Zetta hash/s for the first time in August.
Public miners contributed only about 80 EH/s of year-to-date growth, meaning most of the expansion is now coming from private operators, sovereign miners, and well-capitalized energy players with vastly cheaper power.
The result: miners are being diluted by hashrate growth they are no longer driving.
AI Moves In — And It Pays 10–20× More Per Megawatt
A far bigger disruption is unfolding at the infrastructure level. Industrial-scale mining campuses, comprising 100MW to 1GW sites, share nearly identical power, cooling, and rack density requirements with modern AI datacenters.
That overlap has turned mining facilities into prime targets for hyperscalers.
The math explains why. Bitcoin mining yields roughly $1 million per megawatt, while AI compute generates $10 million to $20 million per megawatt.
No miner can ignore that spread.
Industry Splits: AI Megacampuses vs. Mobile, Ultra-Low-Cost Miners
The sector is now diverging into two clear models:
1. Megascale miners → fully or partially converting to AI/HPC
These facilities can upgrade their electrical topology and uptime standards to meet enterprise requirements. They’re signing decade-long contracts and shifting from volatile block rewards to stable, capacity-based revenue.
2. Low-cost, mobile miners → shifting to stranded energy
Miners unable to compete with AI are moving off-grid: flare gas, remote hydro, and surplus renewables. Portable rigs are being deployed everywhere cheap energy exists, echoing mining’s early decentralized roots.
This migration marks a long-term reshaping of the industry, and not a temporary cycle.
According to a CoinShares report:
Hashprice averaged approximately $50 per PH/s/day throughout Q2, continuing its post-halving slide.
XRP is attempting a strong recovery after last week’s decline, with the altcoin posting an 8% rise in the past 24 hours.
The broader market’s positive shift is helping XRP regain momentum, but the real catalyst appears to be renewed confidence from large investors. This surge in whale activity could position XRP for a retest of multi-week highs.
XRP Whales Rescue The Altcoin
Whale buying has intensified as XRP approached the $2.00 psychological level earlier this week. On-chain data shows that wallets holding between 100 million and 1 billion XRP collectively accumulated 620 million XRP in just a few days. At current prices, this accumulation is worth more than $1.36 billion.
Such aggressive buying at discounted levels indicates that whales are positioning for a potential rebound and view the recent dip as a buying opportunity rather than a trend reversal. Their renewed confidence signals that the upside potential outweighs the short-term volatility.
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The macro backdrop for XRP is also showing marked improvement. The HODLer Net Position Change — an indicator tracking movements among long-term holders — is flashing bullish for the first time since mid-October. The metric has shifted back into positive territory, signaling that LTHs have stopped selling and are once again accumulating.
Support from long-term holders is critical for maintaining price floors during periods of market uncertainty. Their return provides XRP with a more stable base and reduces the likelihood of major downside moves, priming the asset for sustained recovery should broader market conditions remain favorable.
XRP is trading at $2.20 at the time of writing, up 8% in 24 hours after bouncing cleanly from the $2.00 intra-day low. The rebound from this key psychological level reinforces bullish sentiment and aligns with heavy whale accumulation.
Holding $2.20 as support places XRP in a strong position to target $2.36 next. If XRP manages to break this resistance, the altcoin could climb toward $2.50 and log its highest price in three weeks. Whale buying and LTH support make this scenario increasingly realistic.
However, failure to maintain investor confidence could still introduce downside risk. If selling pressure increases, XRP may slip back to the $2.02 support level. This would invalidate the bullish setup and erase recent gains.
PENGU rallied over 30% in early December 2025 following news of a major collaboration between Pudgy Penguins and the National Hockey League (NHL) for the 2026 Discover NHL Winter Classic.
Despite the price jump, on-chain data shows persistent transfers of PENGU from the project’s deployment address to centralized exchanges. This trend has sparked debate about the sustainability of PENGU’s recovery.
NHL Partnership Sparks PENGU Rally
PENGU, the Pudgy Penguins community token, experienced a notable surge during the first week of December. It has increased by almost 30% in the last 24 hours, trading at $0.01246 as of this writing.
The partnership spans December through January, beginning with activations at Art Week Miami. The campaign, supported by an animated video of cartoon penguins skating across an ice rink, reflects the brand’s broader push into mainstream entertainment.
Once known primarily as an NFT collection, Pudgy Penguins has expanded into toys, physical events, and global licensing, now aiming to “own winter” through sports tie-ins.
The partnership reignited enthusiasm in the token. DEX trading volume for PENGU reached its monthly high in early December, as noted by Solscan. This surge reflected increased activity from traders responding to the partnership news.
Bullish sentiment received further support from whale accumulation. In late November, large investors acquired about $273,000 in PENGU, buying at nearly three times their average volume. Smart money inflows tracked $1.3 million from new addresses in early November.
At the same time, Bitso Exchange, the leading Latin American crypto exchange, announced a Q1 2026 launch of a perpetuals aggregator, featuring PENGU as a primary asset. This move targets the region’s $1.37 trillion remittance market.
$PENGU is there still hope ? after experiencing a pump of +35% blueprint of pengu with a potential increase of +359% to ATH$PENGU is the official community token of Pudgy Penguins, a web3 entertainment brand based on 8,888 unique NFTs launched on Ethereum in 2021 Acquired by… pic.twitter.com/kBIb0JPgtH
However, with hype building around Pudgy Penguins’ new NHL partnership, traders now face a sharp contrast between bullish momentum and uneasy sell-pressure signals.
On-Chain Analysis: Selling Pressure Persists
Although price action turned positive, blockchain data identified ongoing token transfers. The PENGU deployment address has routinely moved about $3 million in tokens to centralized exchanges every few days.
On-chain analyst EmberCN reported that these transfers have continued, with the latest seen in early December.
“The most recent transfer was in the early hours of this morning,” they wrote.
Since mid-July, the address moved 3.881 billion PENGU tokens, worth $108 million, to centralized exchanges. This activity tracked directly with the decline in PENGU’s price, which fell from its $0.04 second peak to roughly $0.01.
Regular outflows from the project’s core wallet suggest ongoing selling or strategic distribution, challenging recent price gains.
PENGU price decline correlates with on-chain transfers to exchanges / EmberCN
Such token movements often prepare for sales or liquidity. In the PENGU ecosystem, however, the scale and sustained pace suggests ongoing distribution rather than routine liquidity management.
This dynamic creates tension between positive news, such as the NHL partnership, and continued selling from unlocked team or ecosystem tokens.
The newly launched Firelight Protocol introduces staking rewards for XRP through a novel on-chain economic security primitive designed to protect DeFi assets from exploits.
Enabling New Use Cases for XRP
XRP, while being one of the largest crypto assets by market cap, does not have any native staking or yield opportunities. Firelight aims to add a new layer of value for XRP by providing a staking layer that utilizes the staked XRP for providing on-chain cover. This cover can be contracted by DeFi protocols in order to safeguard asset value in case of hacks and exploits.
Bridging the Gap to Institutional-Grade DeFi
DeFi has just come through one of its strongest growth periods ever, surpassing $170 billion in TVL in October, driven largely by institutional demand. At the same time, more than $1 billion is lost to DeFi exploits every year, and recent high-profile incidents like the Balancer exploit have sharpened concerns around asset safety. In traditional finance, insurance is embedded into every market, but DeFi still largely lacks this critical layer of protection, creating a major bottleneck for the next wave of institutional adoption. Firelight is designed to close this gap by providing robust DeFi cover, and the real, growing demand for this protection will help drive value back to XRP holders.
Security-First Approach
Firelight, incubated by Sentora and backed by Flare, utilizes Flare’s FAssets to bring XRP into the protocol. Unlike many generic bridges, FAssets is fully decentralized, and extensively audited, providing a robust on/off-ramp for XRP into DeFi.
At launch, Firelight has completed three audits—one by OpenZeppelin and one by Coinspect and a bug bounty program supported by Immunifi to help ensure maximum protocol security.
How Firelight Enables XRP to Enter DeFi
Firelight will launch across two phases. In the launch phase, XRP holders can deposit XRP and receive stXRP, a 1:1 fully backed, ERC-20 compliant liquid vault token.
stXRP serves as a transferable receipt for users’ deposits and can be freely used across the Flare DeFi ecosystem, from swapping on DEXs, to serving as collateral in lending protocols, or contributing to liquidity pools. Participants in the launch vault will also be eligible to earn Firelight Points.
In Phase 2, staking will back DeFi cover. ensuring a high-impact use-case with real demand to provide rewards for stakers. This will be the sole purpose of the protocol; capital deployed on Firelight will be allocated to this DeFi cover mechanism.
Backed by Industry Leaders
Sentora, as the technical service provider, and Flare Network, as the protocol enabling the creation of FAssets (e.g., FXRP), are the primary contributors to Firelight. Both organizations are backed by Ripple and share a mission to expand XRP’s role in DeFi. Their combined expertise in secure interoperability, protocol design, and network operations provides Firelight with deep technical support and a clear path for long-term ecosystem growth—so XRP holders and developers can build, secure, and scale real-world applications with confidence.
Precious metals rally to multi-week and all-time highs as Fed easing expectations climb, but crypto markets tell a different story amid ETF outflows and macro headwinds.
Gold prices touched a six-week high on Monday while silver struck a record, buoyed by growing expectations of US interest rate cuts and a weakening dollar.
Silver Shines on Supply Squeeze
Spot gold climbed to $4,241 per ounce, its highest level since late October, while silver soared to a record $58.83 before retreating slightly. The white metal has more than doubled in value this year, far outpacing gold’s impressive 60% gain.
The primary driver behind this rally is growing expectations for Federal Reserve rate cuts. According to CME FedWatch data, traders are now pricing in an 87.6% probability of a 25-basis-point rate cut at the Federal Reserve’s December 10 meeting, with only a 12.4% chance of rates remaining unchanged.
Beyond monetary policy expectations, silver is benefiting from acute supply constraints. A historic squeeze in London during October drew record amounts of the metal into the trading hub, subsequently draining inventories elsewhere. Shanghai Futures Exchange-linked warehouses recently hit their lowest levels in nearly a decade, while one-month borrowing costs for silver remain elevated.
Source: CME FedWatch
The dollar’s slide to a two-week low has further enhanced the appeal of precious metals for holders of other currencies. Dovish remarks from Fed officials, including Governor Christopher Waller and New York Fed President John Williams, have reinforced expectations for continued monetary easing.
Bitcoin Bucks the Trend
Yet Bitcoin, often touted as “digital gold,” has moved in the opposite direction. The leading cryptocurrency plunged to around $86,000, down roughly 30% from its October all-time high near $126,000.
Several factors explain this divergence. US-listed Bitcoin ETFs recorded approximately $3.4 billion in net outflows in November, reversing earlier inflows. A $9 million Yearn Finance hack on December 1 rattled DeFi sentiment, while Bank of Japan Governor Kazuo Ueda’s hints at a potential rate hike sparked fears of global carry trade unwinding. Additionally, over $1 billion in leveraged crypto positions were liquidated during the recent selloff.
Those who said that the bitcoin chart will follow gold in the future.
Although gold, silver, and Bitcoin are all non-yielding assets, precious metals are benefiting from independent bullish drivers—namely, physical supply shortages. Bitcoin, by contrast, remains far more sensitive to ETF fund flows and leverage liquidations.
While rate-cut expectations should be favorable for Bitcoin over the medium to long term, short-term headwinds are currently exerting greater influence.
China’s yuan is on track for its strongest annual performance in five years, gaining nearly 4% against the dollar in 2025.
While the rally has captured headlines in traditional finance, its implications for cryptocurrency markets are complicated by Beijing’s increasingly hawkish regulatory stance.
Reduced Capital Flight, Tighter Enforcement
Several factors are driving the yuan’s appreciation: the People’s Bank of China’s supportive daily fixing, renewed inflows into Chinese equities, and a roughly 7% decline in the dollar index. Central investment banks remain bullish, with Goldman Sachs projecting the currency could reach 6.85 per dollar within a year.
For crypto investors, yuan strength is not inherently bullish. Historically, periods of yuan weakness—such as 2018-2019—prompted Chinese capital to seek refuge in Bitcoin as a hedge against currency depreciation. A stronger yuan reverses this dynamic, reducing capital flight incentives and making dollar-denominated assets, including Bitcoin, relatively less attractive to Chinese investors.
Adding to the bearish undertone for China-linked crypto flows, the PBOC last week reaffirmed its crackdown on virtual currencies. At a regulatory coordination meeting on November 29, the central bank warned that crypto speculation has recently resurged, presenting new challenges for risk control. It reiterated that virtual currency-related business activities remain “illegal financial activities” in China.
The PBOC also flagged specific concerns about stablecoins, citing failures to meet customer identification and anti-money-laundering requirements. Authorities warned that stablecoins risk facilitating money laundering, fraud, and unauthorized cross-border fund transfers—signaling that Beijing views dollar-pegged tokens as potential loopholes for capital flight even as the yuan strengthens.
Macro Tailwinds Persist for Yuan
Yet the broader macro backdrop remains supportive for crypto. The same forces driving yuan appreciation—dollar weakness, anticipated Federal Reserve rate cuts, and improving global risk sentiment—are traditionally favorable for risk assets. Bitcoin’s rally since August has coincided with the yuan’s rebound, suggesting both are responding to the same liquidity-driven tailwinds.
While a stronger yuan and tighter Chinese enforcement may reduce one historical source of Bitcoin demand, global liquidity conditions and dollar weakness continue to serve as more significant drivers for crypto market direction.
Vanguard, the $8 trillion US asset manager, will allow crypto-focused ETFs and mutual funds to trade on its platform from December 2, ending its long-standing refusal to support digital asset products.
The decision marks a major shift for the world’s second-largest asset manager and opens regulated crypto access to more than 50 million brokerage customers.
Vanguard Abandons Its Anti-Crypto Policy
The firm confirmed it will support products that hold Bitcoin, Ether, XRP, Solana, and other regulated cryptocurrencies.
However, it will continue to block funds tied to meme coins and will not launch its own digital asset products.
Starting tmrw vanguard will allow ETFs and MFs tracking bitcoin and select other cryptos to begin trading on their platform. They cite how the ETfs have been tested performed as designed through multiple periods of volatility. Story via @emily_graffeopic.twitter.com/AKhMdR7pab
The company rejected spot Bitcoin ETFs after their January 2024 debut and even restricted customer purchases of competing funds.
For years, Vanguard executives argued that crypto lacked intrinsic value, produced no cash flows, and did not fit long-term retirement strategies.
However, persistent demand pressured the firm to rethink its stance. Bitcoin ETFs became one of the fastest-growing product categories in US fund history, with BlackRock’s IBIT alone gathering tens of billions in assets.
This scale, combined with a steady shift in investor preferences, weakened the rationale for exclusion.
Vanguard 2024: “#Bitcoin isn’t a store of value. We’ll never offer ETFs.”
The policy shift follows more than a year of internal debate. Vanguard’s former CEO, Tim Buckley, was widely seen as the main opponent of crypto adoption.
His departure and the appointment of Salim Ramji — a former BlackRock executive with experience in blockchain initiatives — signaled a potential pivot.
Ramji did not push the firm toward issuing its own crypto funds but supported granting customers access to regulated products.
That move aligns crypto with Vanguard’s treatment of other non-core assets, such as gold ETFs.
Market Conditions Did Not Stop the Move
The reversal comes during a deep crypto drawdown and heavy ETF outflows since early October. Bitcoin’s market value has fallen sharply, and leveraged positions have suffered heavy losses.
Yet Vanguard said digital asset ETFs have continued to operate smoothly and maintain liquidity through volatile periods.
The firm noted that operational processes for servicing crypto products have matured since 2024. It added that its clients increasingly expect access to a wide range of asset classes through a single brokerage platform.
Vanguard *finally* caves…
Will now allow spot crypto ETF trading on brokerage platform.
Includes btc, eth, xrp, & sol ETFs.
However, Vanguard reiterates that they have *no* plans to launch own spot crypto ETFs.
Starting Tuesday, Vanguard customers can buy and sell most regulated crypto ETFs and crypto-focused mutual funds. The company will still screen products for compliance and will exclude any vehicle tied to SEC-defined memecoins.
Vanguard stressed that it has no plans to build proprietary crypto offerings.
Instead, it aims to accommodate diverse risk profiles while maintaining its conservative product philosophy.
The move is likely to strengthen digital asset legitimacy across traditional finance. It also marks a symbolic turning point for a firm long considered crypto’s most persistent holdout.
Since its inception in 2009, Bitcoin has shown a consistent four-year cycle. It’s driven by massive moves centered around Bitcoin’s halving, peaking with a blow-off top the next year.
Since the 2024 halving, Bitcoin prices have trended higher, but none of the signs of a speculative blow-off top have occurred in 2025, at least within the timeframe consistent with the four-year cycle.
Without that blow-off top, the rest of the crypto market has stalled out, since soaring Bitcoin prices tend to kick off altcoin season.
The history of Bitcoin bull market cycles has been a history of exponential decay. Agree with it or not, you will have to deal with it. Should the current decline carry to $50k, the next bull market cycle should carry to $200k to $250K pic.twitter.com/fFdgPPKvok
With Bitcoin prices down 30% from their early October highs, it’s clear that the four-year price cycle has lost its validity.
This is a sensible development, since BTC is rapidly maturing as an asset class. Rising institutional interest also means that Bitcoin’s cycles will more likely center around economic cycles.
One area where investors have noted a strong correlation with Bitcoin is with global liquidity:
Global Liquidity and Bitcoin Correlation. Source: ZeroHedge
Should that trend establish itself, Bitcoin could jump higher – and even kick off an altcoin season.
Michael Saylor recently called out the four-year cycle as “dead.” Saylor sees a massive repricing soon, which may explain his rush this year to acquire as much Bitcoin as possible.
However, liquidity isn’t the only factor.
Economic Activity
Some investors today are turning to the relationship between Bitcoin’s price and the US Purchasing Managers’ Index (PMI).
The PMI measures manufacturing sector health and serves as an economic leading indicator.
When PMI is above 50, it suggests expansion; below 50 indicates contraction.
With the PMI cooling off again, Bitcoin’s macro fair value has slipped back to around $140k.
2025 has been a choppy year for BTC.
Hot money has been stampeding toward faster horses: AI, gold, small caps… pretty much anything except Bitcoin.
In theory, a strong PMI signals economic growth, which could influence Bitcoin through several channels:
Strong PMI → robust economy → risk-on sentiment → higher appetite for speculative assets like Bitcoin
Weak PMI → economic concerns → potential Fed easing → more liquidity → potentially supportive for Bitcoin
However, even tools like PMI fail to work as a one-stop indicator for Bitcoin and the crypto cycle.
Sometimes, Bitcoin trades as a “risk-on” asset (correlating positively with stocks and economic strength).
Other times, it trades as a “risk-off” hedge (like digital gold during uncertainty), and it will even move independently based on crypto-specific factors.
Data also shows that the correlations between Bitcoin and PMI are unstable and vary across different time periods.
United States ISM vs. Bitcoin
•ISM Manufacturing PMI: This monthly index measures the health of the U.S. manufacturing sector. It is based on a survey of purchasing and supply executives across various industries and tracks factors such as new orders, production, employment,… https://t.co/W9wmN54Kx0pic.twitter.com/YS1Bm3zwBQ
Bitcoin often responds more strongly to monetary policy signals (Fed decisions, liquidity conditions) than to real economy indicators like PMI.
When PMI does seem to matter, it’s typically through the broader risk sentiment channel rather than a direct mechanistic relationship.
If you’re looking to use PMI as a Bitcoin trading signal, you’d likely find it less reliable than monitoring Fed policy, liquidity conditions, or crypto-native metrics. But a growing economy likely won’t hurt – as sometimes that can push Bitcoin higher even when monetary conditions are tightening.
Sentiment – The Factor that Can Drive Extremes
Cryptocurrencies, particularly Bitcoin, lack traditional valuation anchors like earnings, dividends, or cash flows.
Without these fundamental metrics, price discovery relies heavily on what people believe the asset should be worth.
This creates space for sentiment to be the primary driver.
Studies of crypto market behavior consistently show that social media activity, search trends, and news sentiment have measurable predictive power for short-term price movements in ways that exceed their impact on traditional assets.
The crypto market also has structural features that amplify sentiment, including high retail participation (which leads to more emotional trading), 24/7 trading (with no circuit breakers to cool emotions), high leverage availability, and rapid information dissemination through crypto-native social channels.
Here’s where it gets complicated: what looks like “pure sentiment” often includes assessments of fundamental factors.
When investors get excited about institutional adoption news, is that sentiment or recognition of changing supply/demand fundamentals?
When macro concerns drive people toward Bitcoin as a hedge, sentiment is the transmission mechanism for macro factors.
During stable periods, you might see something like: 40% macro conditions (Fed policy, inflation, dollar strength), 30% supply/demand fundamentals (adoption metrics, on-chain activity, halving cycles), and 30% pure sentiment/speculation.
During euphoric bull runs or panic crashes, sentiment could dominate at 60-70%+, temporarily overriding both fundamentals and macro logic.
These are the periods where asset prices detach most dramatically from any rational valuation model. Investors who can recognize when sentiment is in control are best positioned to profit from those conditions.
Academic studies attempting to decompose crypto returns generally find that sentiment indicators explain 20-40% of price variance in normal conditions, but this can spike much higher during extreme market phases.
Notably, crypto markets show much stronger “momentum” and “herding” effects than traditional markets, which are often hallmarks of sentiment-driven trading.
The cryptocurrency market is probably best understood as fundamentally sentiment-driven in the short to medium term, with macro and supply/demand factors providing boundaries and direction over longer timeframes.
Bringing It Together
Clearly, there’s no one signal or trend for investors to look at to determine Bitcoin’s cycles.
An expanding economy should be bullish for Bitcoin prices. A contracting one shouldn’t be – unless there’s a massive infusion of liquidity in the system.
Individual indicators like global liquidity, credit market conditions, business conditions and market sentiment will all play a role.
Beyond Bitcoin, individual crypto projects working on real-world problems will rise or fall with their prospects.
Meme coins will rise and fall much faster – driven by the short-lived magic of memes themselves.
But bear in mind, even with Bitcoin moving beyond its four-year, retail-driven cycle, the fundamental concept remains intact.
As Bitwise CIO Matt Houghton recently noted:
“The reason bitcoin’s price is up ~28,000% over the last ten years is that more and more people want the ability to store digital wealth in a way that isn’t intermediated by a company or a government.”
And when Bitcoin takes off again, the altcoins will follow.
Tokenized gold is gaining momentum as geopolitical uncertainty and rising gold prices weaken trust in fiat-backed assets. Major institutions and sovereign actors are launching or expanding gold-backed tokens.
This shift suggests tokenized gold may soon move beyond its niche role amd become a credible next-generation, stable, and globally usable digital value.
A Five-Year Flight to Safety
The turbulence of the past few months has reinforced the role of gold as a safe-haven asset. It was only two months ago that the metal’s price hit a record, surpassing $4,000 per ounce.
This isn’t only a recent phenomenon. Between 2020 and 2025, the price of gold more than doubled, reflecting a wider flight to safety as global markets confronted a pandemic, inflation, wars, sanctions, and persistent geopolitical tensions.
The price of gold over the past five years. Source: Gold Price.
At the same time, advances in blockchain technology have transformed the use of gold. Tokenization, instant settlement, and 24/7 global liquidity now make a traditionally static asset far more flexible in digital form.
Last month, Swiss metals giant MKS PAMP, one of the world’s largest gold refiners and a major supplier of precious metals to global markets, relaunched DGLD, a gold-backed token designed for institutional investors.
In the crypto space, Tether Gold (XAUt) continues to see steady growth. Pax Gold (PAXG), launched by New York–regulated blockchain firm Paxos, is also expanding. Together, their market caps now exceed $3 billion, making them the most widely used gold-backed digital assets available to the public.
Traditional banking players are also testing the waters. HSBC, one of the largest multinational banks and a major custodian of physical gold through its London vaults, is experimenting with its own gold token for clients.
While these digital gold products are still relatively small compared to the market value of gold exchange-traded funds (ETFs), their expansion signals a growing confidence that blockchain-based gold is becoming a credible financial instrument.
In fact, the movement is not even limited to the private sector.
In November, Kyrgyzstan launched USDKG, the first gold-backed stablecoin pegged to the US dollar. Backed by the country’s national gold reserves, it offers a sanction-resistant tool for cross-border payments and trade. Kyrgyzstan’s approach could also encourage other, larger nations to follow suit.
Still, some challenges remain.
Regulators Stay Wary
Gold-backed tokens still have no clear industry standard, which makes it harder for users to compare their reliability.
Transparency also varies. Some issuers publish regular third-party audits, while others offer limited details about their vaults or redemption processes. Regulations differ widely across countries, adding another layer of uncertainty for consumers and businesses.
These gaps explain why many governments remain cautious.
Officials worry that freely circulating gold-backed assets could weaken confidence in national currencies and complicate monetary policy. They also fear that digital gold could facilitate the movement of money outside traditional banking controls.
Even so, momentum is unmistakable.
If clearer rules and rising geopolitical pressures push the industry forward, tokenized gold could move from the margins to become a core pillar of stable, globally usable digital money.
Washington state regulators have ordered CoinMe to halt all money-transfer activity after accusing the crypto ATM operator of treating more than $8 million in customer funds as its own revenue.
The Department of Financial Institutions (DFI) issued an emergency cease-and-desist order on December 1, citing “unsafe and unsound practices.”
Regulator Flags Misuse of Customer Money
DFI said CoinMe failed to safeguard money that consumers paid for crypto vouchers. Instead, the company allegedly counted unclaimed or expired voucher balances as income.
According to the filing, customers bought vouchers at CoinMe kiosks but never redeemed them. Washington law requires companies to hold those funds as consumer property or turn them over as unclaimed assets.
However, DFI says CoinMe treated the balances as corporate revenue. The regulator argues this harmed consumers and distorted the company’s financial condition.
Because of these findings, DFI ordered CoinMe to stop all money-transfer and kiosk-related operations in the state. The company cannot accept new funds from Washington consumers under the order.
Officials also said they will seek restitution for affected customers. The agency signaled plans to revoke CoinMe’s state money-transmitter license.
The cease-and-desist order lists several other violations. These include failing to maintain required net worth, keeping inaccurate records, and submitting incorrect filings.
DFI also noted that some CoinMe vouchers displayed a support phone number that no longer worked. The regulator said this contributed to poor consumer protection.
A Significant Blow to a Major Cash-to-Crypto ATM Network
This action marks one of the most serious state enforcement moves against a US crypto ATM operator. CoinMe operates one of the largest cash-to-crypto networks in the country.
The case highlights growing scrutiny of crypto on-ramps that handle physical cash. Regulators expect these companies to follow the same standards as traditional money-transmitters.
CoinMe can contest the order, but Washington regulators appear prepared to escalate the case. If the state revokes the company’s license, CoinMe will lose the ability to operate any money-transfer service in Washington.
Meanwhile, DFI urged affected customers to prepare claims for potential refunds. The agency’s priority, it said, is protecting consumers who rely on licensed firms to securely handle their money.
MicroStrategy suffered a catastrophic start to December as its market cap briefly fell below the net value of its Bitcoin holdings, exposing the company to renewed concerns about leverage, liquidity, and investor confidence.
Shares collapsed early Monday, dropping to $156, which pushed MicroStrategy’s valuation to $45 billion.
Wall Street Nightmare For MicroStrategy?
The company currently holds 650,000 BTC worth roughly $55.2 billion, making this drop a rare moment where Wall Street valued the business at less than its underlying assets.
However, MicroStrategy also carries $8.2 billion in debt. After subtracting that debt and adding the firm’s $1.4 billion cash reserve, the company still holds about $48.4 billion in net Bitcoin value.
This means the stock fell $3.4 billion below its Bitcoin-adjusted worth at the session low.
The disconnect shocked traders. MicroStrategy normally trades at a premium because markets price in Michael Saylor’s aggressive Bitcoin strategy, future BTC purchases, and the stock’s role as a regulated Bitcoin proxy.
A) Bitcoin price would crash if Saylor sold. And there’s not enough liquidity to exit the position. He is the liquidity. Institutions have been net sellers.
B) Debt isn’t free. There’s regular interest payments. Therefore he must sell more shares in perpetuity. pic.twitter.com/fsChvN4DHW
By midday, the company’s mNAV ratio—which measures how far the stock trades above or below Bitcoin net asset value—recovered to 1.16, far below the levels seen earlier in 2025.
The reading shows the market now values MicroStrategy only 16% above its Bitcoin holdings, compared with premiums exceeding 50% during the year’s rally.
The decline coincided with tightening liquidity, falling ETF inflows, and an industry-wide reset in risk appetite.
Concerns about Saylor’s long-term strategy also resurfaced. Critics argue the company’s debt must be serviced regardless of Bitcoin’s performance, increasing pressure to raise new capital or sell more shares.
Others warn that MicroStrategy’s position is now so large that Saylor cannot reduce risk without destabilizing the market.
Still, the company remains the largest corporate Bitcoin holder in the world, and its holdings continue to exceed its market cap.
MSTR Stock Price Chart On December 1. Source: Google Finance
The rebound later in the day shows investors are not abandoning the stock, but they are reassessing the risks more aggressively than at any point this year.
MicroStrategy begins December with its tightest valuation gap in years, signaling a turning point in how markets view the company’s leveraged Bitcoin strategy.
Whether this marks a temporary panic or the start of a deeper correction will depend on Bitcoin’s stability and the company’s next moves.
Two major economies are tightening control over digital currencies just as the US pushes to cement its leadership in the stablecoin sector. Israel is accelerating its digital shekel plans while China continues to expand the digital yuan.
These moves signal a broader global shift toward sovereign digital money that could challenge the reach and influence of US dollar–based stablecoins.
Israel Tightens Rules, Advances Digital Shekel
Stablecoins have become a central pillar of the digital asset market, moving well beyond their early role as a trading convenience.
The sector now processes more than $2 trillion in monthly volume and holds a market cap above $310 billion, almost all of it in dollars. That growth has prompted private companies to assume a leading role in operating key components of global payment infrastructure.
As their influence expands, governments are stepping back in. Many are introducing new rules aimed at limiting the reach of USD-linked tokens.
During a recent conference in Tel Aviv, Bank of Israel Governor Amir Yaron stated that the country is preparing to implement much stricter oversight of stablecoins, citing growing concerns over the sector’s concentration.
With most activity dominated by Tether and Circle, he warned that any issue with their reserves or backing could spill into the wider financial system.
Yaron also noted that stablecoins are now so embedded in global money flows that they can no longer be treated as a niche market, adding that the sector’s scale already rivals that of a mid-tier international bank.
The Bank of Israel recently published a detailed design document outlining user journeys, technical architecture, and key policy considerations. Officials say the project aims to strengthen the country’s payment infrastructure and reduce reliance on private digital assets.
As Israel builds its regulatory and technological framework, China is taking a far more forceful path.
Beijing Shuts Out Stablecoin Influence
China’s central bank has doubled down on its broad crypto ban, working with different government bodies to target stablecoin activity and close remaining loopholes. Officials say digital assets fuel money laundering and capital flight, and they stress that these tokens carry no legal currency status.
According to Ledger Insights, the People’s Bank of China recently reported that e-CNY transaction volumes nearly doubled in the past 14 months, reaching $2 trillion by September.
Pilot programs are now operational across major cities, public-sector payment systems, and select commercial routes. This push is embedding the state-issued currency deeper into daily financial activity.
🇨🇳 People's Bank of China announces full integration of its digital cross-border system with ten ASEAN countries and six Middle Eastern countries
This will significantly increase global trade through digital yuan. Many experts believe that figures of up to 38% will be achieved,… pic.twitter.com/bagM1owks8
By walling off stablecoins and accelerating the digital yuan, China aims to cut dependence on foreign currency rails, especially those tied to the US dollar. The strategy also helps preserve tight control over data, capital flows, and payment infrastructure.
Together with Israel’s more measured but still sovereignty-driven approach, China’s escalation highlights a clear global shift.
Major economies are no longer willing to let USD stablecoins define the future of payments. Many are now building or enforcing their own digital systems and challenging the US’s ambitions for stablecoin dominance.
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