US economic data is flashing early warning signs for risk assets and crypto. The latest labor figures suggest household income growth may weaken heading into 2026.
That trend could reduce retail investment flows, especially into volatile assets like crypto. In the short term, this creates a demand problem rather than a structural crisis.
US Labor Data Signals Slower Disposable Income Growth
The latest Nonfarm Payrolls report showed modest job creation alongside a rising unemployment rate. Wage growth also slowed, pointing to weaker income momentum for households.
Retail Investors Are Most Exposed And Altcoins Could Feel It First
Retail participation plays a larger role in altcoin markets than in Bitcoin. Smaller tokens rely heavily on discretionary retail capital chasing higher returns.
Bitcoin, by contrast, attracts institutional flows, ETFs, and long-term holders. That gives it deeper liquidity and stronger downside buffers.
If Americans have less money to invest, altcoins tend to suffer first. Liquidity dries up faster, and price declines can persist longer.
Retail investors may also be forced to exit positions to cover expenses. That selling pressure weighs more heavily on smaller-cap tokens.
Average Crypto RSI Remains Near Oversold Levels. Source: CoinMarketCap
Lower Income Does Not Mean Lower Prices, But It Changes The Driver
Asset prices can still rise even when incomes weaken. That typically happens when monetary policy becomes more supportive.
A cooling labor market gives the Federal Reserve room to cut rates. Lower rates can boost asset prices through liquidity rather than household demand.
For crypto, that distinction matters. Rallies driven by liquidity are more fragile and sensitive to macro shocks.
Institutions Face Their Own Headwinds From Japan
Retail weakness is only part of the picture. Institutional investors are also becoming more cautious.
The Bank of Japan’s potential rate hikes threaten global liquidity conditions. They risk unwinding the yen carry trade that has supported risk assets for years.
Bank of Japan is set to hike interest rates by 25bps on December 19
The last 3 times BoJ hiked rates, Bitcoin dumped by over 20%
March 2024 → -27% July 2024 → -30% January 2025 → -31%
We already saw a 7% dump last week as investors tried to front-run the dump.
When borrowing costs rise in Japan, institutions often reduce exposure globally. Crypto, equities, and credit all feel the impact.
The main risk is not collapse, but thin demand. Retail investors may step back due to weaker income growth. Institutions may pause as global liquidity tightens.
Altcoins remain the most vulnerable in this environment. Bitcoin is better positioned to absorb the slowdown.
For now, crypto markets appear to be transitioning. From retail-driven momentum to macro-driven caution.
A meme coin called HERO has gained traction over the past few days, created in honor of a man who helped disarm one of two attackers during a deadly assault at a Hanukkah celebration in Sydney, Australia, over the weekend.
The token briefly reached a market capitalization of $1.7 million. The team behind the initiative says the project will donate all creator fees to support the victims of the attack.
HERO Launched to Support Bondi Victims
A grassroots initiative has gathered momentum following the terrorist attack at Bondi Beach on Sunday, which left 15 people dead and at least 42 others injured.
An individual known as DefiANT on X launched the HERO meme coin in honor of Ahmed al-Ahmed, a 43-year-old fruit shop owner who managed to disarm one of the attackers during the incident.
the whole world is talking about the heroic act of Ahmed.
meanwhile, we have established ourselves as the only true $hero coin by donating $20k in creator rewards so far, with much more to come.
we had our first space in which people shared their experiences, expressed…
According to DexScreener, HERO runs on Solana and currently has a market capitalization of $180,000. The meme coin was created via Pump.Fun and reached a peak of nearly $1.7 million in market cap. Although the meme coin was launched on the same day as the attack, the original developer rugged the project and later abandoned it.
Since then, the community has taken over stewardship of the token, with DefiANT emerging as the primary driving force. It has since evolved into a fully community-led initiative, with all proceeds dedicated to supporting the victims.
Alongside the token, the team launched a parallel GoFundMe campaign to raise funds for those affected by the attack.
According to the fundraising page, nearly 40,000 contributors have collectively raised over $2.3 million. The campaign has set a target of $3.1 million.
The official HERO website states that donations will be distributed to victims in multiple tranches. DefiANT also confirmed on social media that 47,000 Australian dollars have already been donated to individuals impacted by the attack.
Large institutions — including hedge funds, banks, asset managers, and proprietary trading desks — borrow yen through Japanese banks, FX swap markets, and short-term funding channels.
They then convert that yen into dollars or euros. The capital flows into higher-yielding assets.
Those assets include equities, credit, emerging markets, and increasingly, crypto. Bitcoin benefits when this funding stays cheap and abundant.
Bitcoin is especially attractive because it trades 24/7 and offers high volatility. For leveraged funds, it becomes a liquid way to express risk-on positioning.
If markets believe Japan is entering a multi-step tightening cycle, traders do not wait. They cut exposure early.
That anticipation alone can trigger selling across global risk assets. Bitcoin feels the impact quickly because it trades continuously and reacts faster than stocks or bonds.
How the BoJ Tightening Can Trigger Bitcoin Liquidations
Bitcoin’s sharpest drops rarely come from spot selling alone. They come from leverage.
A hawkish BoJ move can strengthen the yen and lift global yields. That pressures risk assets simultaneously.
Bitcoin then falls through key technical levels. That matters because crypto markets rely heavily on perpetual futures and margin.
That forced selling pushes Bitcoin lower again. It triggers more liquidations in a cascading loop.
This is why macro events can look like crypto-specific crashes. The initial shock comes from rates and FX.
The second wave comes from crypto’s leverage structure.
What Traders Watch Around BoJ Decisions
BoJ risk builds before the announcement. Traders watch for early warning signs:
Yen strength, which signals carry trades are unwinding
Rising bond yields, which tighten financial conditions
Falling funding rates or open interest, which show leverage exiting
Key Bitcoin support breaks, which can trigger liquidations
The tone of BoJ guidance also matters. A hike with dovish messaging can calm markets.
A hawkish signal can extend selling pressure.
In short, the Bank of Japan matters because it controls a major source of global liquidity. When that liquidity tightens, Bitcoin often pays the price first.
MicroStrategy’s latest Bitcoin buy has quickly come under scrutiny. Just one day after the firm disclosed a major purchase, Bitcoin fell sharply.
On December 14, MicroStrategy announced it had acquired 10,645 BTC for roughly $980.3 million, paying an average price of $92,098 per coin. At the time, Bitcoin was trading near local highs.
A Poorly Timed Buy, At Least in the Short Term
The timing was unfortunate. Only a day after Strategy’s reported purchase, Bitcoin had dropped toward the $85,000 range, briefly trading even lower. At the time of writing BTC remains below $80,000.
Strategy has acquired 10,645 BTC for ~$980.3 million at ~$92,098 per bitcoin and has achieved BTC Yield of 24.9% YTD 2025. As of 12/14/2025, we hodl 671,268 $BTC acquired for ~$50.33 billion at ~$74,972 per bitcoin. $MSTR$STRC$STRK$STRF$STRD$STREhttps://t.co/VdAz7pqce1
Bitcoin’s decline came amid a broader macro-driven sell-off, fueled by Bank of Japan rate-hike fears, leverage liquidations, and market-maker de-risking. MicroStrategy’s purchase landed just ahead of that cascade.
Bitcoin’s Price Drop Was Driven by Liquidations — Not Spot Selling
“In this context, the current move should be viewed less as a collapse in fundamental demand and more as a structural deleveraging event.” – By @xwinfinancepic.twitter.com/i1DSrt2Ttw
As Bitcoin slid, MicroStrategy shares fell sharply. Over the past five trading days, the stock dropped more than 25%, significantly underperforming Bitcoin itself.
While shares saw a modest rebound today, they remain far below levels seen before the purchase announcement.
MSTR Stock Prices Over The Past Week. Source: Google Finance
The Numbers Behind the Concern
As of now, MicroStrategy holds 671,268 BTC, acquired for approximately $50.33 billion at an average price of $74,972 per coin.
On a long-term basis, the firm remains deeply in profit.
However, short-term optics matter. With Bitcoin near $85,000, the latest tranche is already underwater on paper.
MicroStrategy’s mNAV currently sits around 1.11, meaning the stock trades only about 11% above the value of its Bitcoin holdings. That premium has compressed rapidly as Bitcoin fell and equity investors reassessed risk.
Investors are not questioning MicroStrategy’s Bitcoin thesis. They are questioning timing and risk management.
The macro risks that triggered Bitcoin’s drop were well telegraphed. Markets had been warning about the Bank of Japan’s potential rate hike and the threat to the yen carry trade for weeks.
Bitcoin has historically sold off aggressively around BOJ tightening cycles. This time was no different.
Critics argue MicroStrategy failed to wait for macro clarity. The firm appeared to buy aggressively near resistance, just as global liquidity conditions tightened.
🚨 JAPAN WILL CRASH BITCOIN IN 5 DAYS!!!
People are seriously underestimating what Japan is about to do to Bitcoin.
The Bank of Japan is expected to raise rates again on Dec 19.
That might not sound like a big deal… until you remember one thing:
From a trading perspective, the purchase looks poorly timed. Bitcoin fell immediately, and the stock suffered amplified losses due to leverage, sentiment, and shrinking NAV premium.
From a strategy perspective, MicroStrategy has never aimed to time bottoms. The company continues to frame its purchases around long-term accumulation, not short-term price optimization.
CEO Michael Saylor has repeatedly argued that owning more Bitcoin matters more than entry precision.
The real risk is not the purchase itself. It is what happens next.
If Bitcoin stabilizes and macro pressure eases, MicroStrategy’s latest buy will fade into its long-term cost basis. If Bitcoin drops further, however, the decision will remain a focal point for critics.
MicroStrategy may not have made the worst Bitcoin purchase of 2025. But it may have made the most uncomfortable one.
The US Securities and Exchange Commission has closed its investigation into the Aave Protocol without recommending enforcement action, according to a notice dated December 16.
The decision ends a multi-year probe into one of the largest decentralized finance (DeFi) lending platforms and removes a major regulatory overhang for the sector.
Investigation Closed Without Enforcement
In its notice, the SEC said it had concluded its investigation into the Aave Protocol and does not intend to recommend enforcement action at this time.
However, the agency emphasized that the closure does not constitute an exoneration and does not prevent future action should circumstances change. The notice follows standard SEC practice under Securities Act Release No. 5310.
After four years, we are finally ready to share that the SEC has concluded its investigation into the Aave Protocol.
This process demanded significant effort and resources from our team, and from me personally as the founder, to protect Aave, its ecosystem, and DeFi more… pic.twitter.com/aZeLrZz5ZQ
The investigation began around 2021–2022, during a period when the SEC intensified scrutiny of crypto lending, staking, and governance tokens.
Aave, a non-custodial DeFi protocol, allows users to lend and borrow digital assets through automated smart contracts. The protocol operates without intermediaries and is governed by holders of the AAVE token.
AAVE Briefly Climbs After SEC’s Announcement. Source: CoinGecko
Earlier this week, DAO members raised concerns that a front-end infrastructure change may have redirected swap fee revenue away from the Aave DAO treasury. The issue followed a shift from ParaSwap to CoW Swap on Aave’s official interface.
Extremely concerning.
The stealth privatization of approximately 10% of Aave DAO's potential revenue, leveraging brand and IPs paid for by the DAO, represents a clear attack on the best interests of the $AAVE Token holders.
Governance delegates said the change could reduce DAO revenue by up to $10 million annually, depending on trading volumes.
Aave Labs responded that the front-end is a separate product and that prior revenue sharing was voluntary.
For now, Aave emerges from regulatory scrutiny without penalties, which has been a common pattern as the SEC backtracks from crypto enforcement under Paul Atkins.
Still, the protocol faces ongoing questions around governance, decentralization, and value capture as DeFi matures.
As Bitcoin’s price continues to trend lower, China’s renewed crackdown on domestic mining activity may help explain the sudden downturn.
In Xinjiang province, an estimated 400,000 miners were forced to shut down operations and go offline. The abrupt disruption cut off revenue streams, pushing some operators to sell Bitcoin holdings to cover operating costs or finance relocation efforts.
Mining Disruptions Add Pressure to Bitcoin’s Decline
In a recent social media post, former Canaan chairman Jack Kong said that China’s computing power fell by roughly 100 exahashes per second (EH/s) within 24 hours. He noted that the decline, estimated at around 8%, followed the shutdown of hundreds of thousands of mining machines.
Bitcoin Hash Rate Falls by Most Since 2024 Halving
They note that abrupt and stringent measures often force miners to take immediate actions, which can amplify short-term market pressure.
Miner Shutdowns Trigger Liquidity Stress And Selling
According to Bitcoin analyst NoLimit, when miners are forced offline, a chain reaction typically follows.
This includes an immediate loss of revenue, an urgent need for liquidity to cover operating expenses or relocation costs, and, in some cases, the forced sale of Bitcoin holdings.
These dynamics can spill directly into the broader crypto market. When roughly 8% of Bitcoin’s computing power is suddenly taken offline, uncertainty rises, adding short-term stress to Bitcoin’s price.
🚨 BITCOIN IS CRASHING AND THIS IS THE REASON WHY!!!
Bitcoin is down today for a very simple reason, and almost nobody is explaining it properly.
It’s coming straight from China, and the timing matters.
“That creates real sell pressure, not the other way around,” NoLimit explained.
Timing magnified the impact. China’s mining sector had only recently re-established itself as a major contributor to global hashrate.
A Mining Comeback Meets Abrupt Regulatory Pressure
Less than a month ago, China regained its position as the world’s third-largest Bitcoin mining hub. According to the Hashrate Index, the country accounted for roughly 14% of global hashrate by October.
Analysts point to access to low-cost power and surplus electricity in certain regions as key drivers behind the resurgence.
Against this backdrop, this week’s crackdown caught miners off guard. With regulations suddenly tightened and Bitcoin’s hashrate falling, miner revenues quickly became a central concern.
These pressures were compounded by Bitcoin’s roughly 30% decline from its October peak and persistently low transaction fees, pushing miner revenues to recent lows.
Given that mining underpins the security and operation of the Bitcoin network, the recent price pullback appears consistent with the broader disruption, though its full impact may unfold over time.
[Valetta, Malta, Dec. 16, 2025] OKX, a leading cryptocurrency exchange and global on-chain technology company, today announced the launch of Spot Margin trading for customers in Europe, expanding its suite of advanced trading tools across the region.
The new offering extends capabilities already available on OKX’s global platform, including up to 10× leverage for spot margin, and cross-margin mode which allows your full portfolio to be considered as collateral, while ensuring adherence to regional regulatory requirements. With this launch, OKX is making margin products accessible to European customers while emphasizing a transparent, risk-managed framework supported by the company’s established global risk controls and Proof-of-Reserves verification system.
With Spot Margin trading, European customers gain access to OKX’s familiar and battle-tested margin system equipped with comprehensive risk controls, transparent asset verification, and real-time monitoring. As part of this rollout, BTC and ETH margin trading pairs will be available against USDC with up to 10× leverage for both long and short positions, executed through an independent unified USD EEA orderbook. This structure ensures full compliance with regional requirements while maintaining the liquidity depth, speed, and overall performance customers expect from OKX.
Spot Margin on OKX Europe enables customers to:
Access up to 10× leverage on supported trading pairs
Deploy hedging strategies using long and short positions
Learn and manage risk through transparent Loan-to-Value (LTV) parameters and automated liquidation education tools
“Europe is a tier-1 region for OKX, and today’s launch reflects our commitment to offering secure, transparent, and responsibly designed trading tools to European customers,” said Erald Ghoos, CEO of OKX Europe.
“By bringing Spot Margin to OKX Europe, we are giving customers access to the same high-quality infrastructure trusted globally, while meeting the expectations of both regulators and our community.”
About OKX
Trusted by more than 100 million customers around the globe, OKX is a technology company building a decentralized future that makes the world more tradable, transparent and connected. We’re known for being one of the fastest and most reliable crypto apps in the world, and have processed trillions of dollars in transactions.
We have key regional offices, including headquarters in San José, California, for the Americas and in Dubai for the Middle East. We also have offices in São Paulo, New York, Hong Kong, Singapore, the Republic of Türkiye, Australia and Europe. Over the past several years, we’ve built one of the world’s most comprehensive regulatory compliant, licensed crypto companies. We hold licenses in the United States, the UAE, EEA, Singapore and Australia, as well as in other markets.
We’re steadfastly committed to transparency and security and publish Proof of Reserves reports on a monthly basis. To learn more about OKX, download our app or visit:okx.com.
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 as the latest US labor data delivers mixed signals on jobs, wages, and unemployment. Traders are weighing what it all means for risk assets, from equities to Bitcoin, as volatility sets the tone.
Crypto News of the Day: October Jobs Collapse and November Modest Gain Signal Uneven Market
The US Nonfarm Payrolls (NFP) report for October and November 2025 delivered a shock to markets, as it is one of the crucial economic data points this week. It revealed a cooling labor market that could reverberate through both equities and crypto.
According to the US Bureau of Labor Statistics (BLS),October saw a sharp decline of 105,000 jobs, far below the estimated -25,000. This marks a pronounced slowdown in labor market momentum.
November posted a 64,000 gain, slightly above the 50,000 consensus, but with the unemployment rate climbing to 4.6% from 4.4% in October, higher than the expected 4.5%.
🚨 Just In: November Nonfarm Payrolls rise 64,000, above expectations for 40,000.
The U.S. Unemployment Rate rose from 4.4% to 4.6%, worse than estimates for 4.5%.
While November’s rise offers some relief, it highlights the uneven nature of recent US labor market activity.
Fed and Market Implications For Bitcoin and Risk Assets
The data is likely to reinforce dovish narratives for the Federal Reserve. Powell previously cited a weakening labor market as justification for rate cuts, and today’s figures suggest the economy is far from overheated.
Traders may interpret the report as a signal that further easing in 2026 is plausible, which could support risk assets, including Bitcoin, if liquidity expectations remain intact. Bitcoin has been trapped near $90,000, and today’s data could trigger short-term volatility.
A weak October print followed by a modest November recovery may fuel a relief rally toward $95,000 as markets price in potential Fed accommodation.
Conversely, the unexpectedly high unemployment rate could reignite recession fears, creating whipsaw moves in crypto, equities, and FX.
“While markets typically cheer the resolution of uncertainty, this specific data dump is unique. The cooling trend might spark an initial crypto rally on renewed hopes for aggressive Fed cuts in 2026. But if the numbers are too weak, the narrative could quickly pivot from liquidity hopes to recession fears, historically dampening risk appetite across the board,” Jimmy Xue, COO and Co-founder at Axis, told BeInCrypto.
Market participants remain wary. With October’s data representing an outlier and November’s figures collected late, statistical distortions and revisions are possible.
Algorithm-driven trading and lean liquidity could amplify volatility in the near term, making measured positioning critical.
Amid mixed signals, traditional safe havens like gold may continue to attract flows, as the US dollar faces pressure and risk sentiment remains fragile in tech-heavy sectors.
Chart of the Day
Analysis of BLS Current Establishment Survey. Source: Jed Kolko on X
Byte-Sized Alpha
Here’s a summary of more US crypto news to follow today:
Global cryptocurrency exchange ZOOMEX today announced the launch of its flagship year-end event, the “Fair Play Cup” Trading Competition. Featuring a total prize pool of up to $100,000, the competition serves not only as a global arena for traders to compete, but also as a concrete demonstration of ZOOMEX’s long-standing commitment to the core principles of fairness, transparency, and integrity.
According to ZOOMEX, the Fair Play Cup is designed to provide a level, transparent trading environment where all participants compete on equal footing—allowing traders to focus purely on strategy, skill, and performance.
Event Highlights and Reward Structure
The Fair Play Cup will run from December 15 to December 31, 2025 (10:00 UTC). Its reward mechanism is designed to benefit a broad range of participants:
Prize Pool Scale:
The competition begins with a 50,000 USDT prize pool, which will expand based on participation, with a maximum cap of $100,000.
Rankings and Coverage:
The champion will earn up to $12,000 in rewards. Notably, rewards extend to the Top 100 traders, with prizes starting from $250, ensuring wider recognition of strong trading performance.
Trader Subsidies and New User Incentives:
To help traders manage risk while refining strategies, ZOOMEX offers a $300 trading subsidy for participants who reach $50,000 in trading volume and incur net losses exceeding $300.
In addition, newly registered users can enjoy a 100% deposit cashback of up to $1,000, lowering the entry barrier for first-time participants.
The Philosophy Behind the Event: A Long-Term Commitment to Fairness
ZOOMEX stated that the name “Fair Play Cup” reflects the platform’s fundamental belief that a truly competitive market must be built on fairness and equal opportunity. The event is rooted in a set of long-term principles and operational practices:
Profit Usability and Value Ownership:
ZOOMEX emphasizes that profits earned—whether during competitions or regular trading—are fully usable and freely accessible. This principle of “value ownership” is considered central to protecting user interests and strengthening confidence in capital control.
Transparency as a System, Not a Slogan:
Fairness and transparency at ZOOMEX are embedded into its operational framework. From reserve transparency and publicly verifiable fund data to traceable security and compliance disclosures, the platform aims to build trust through verifiable mechanisms rather than marketing claims.
Security and Compliance: The Foundation of a Fair Trading Environment
To support a truly fair and reliable trading ecosystem, ZOOMEX highlighted its ongoing investments in security and regulatory compliance:
Advanced Security Infrastructure:
User assets are protected through multi-signature authorization, hot and cold wallet segregation, least-privilege access controls, and multi-layer authentication systems.
Global Compliance Standards:
ZOOMEX operates in accordance with international regulatory requirements and holds multiple registrations, including AUSTRAC and MSB licenses, among others.
Independent Third-Party Audits:
The platform has undergone security audits conducted by leading firms such as Hacken, reinforcing the credibility and robustness of its systems.
ZOOMEX invites traders worldwide to take part in the Fair Play Cup Trading Competition, compete for top honors, and experience firsthand the secure, transparent, and fair trading environment the platform is committed to delivering.
Founded in 2021, Zoomex is a global cryptocurrency trading platform with over 3 million users across 35+ countries and regions, offering 600+ trading pairs. With the core values of “Simple × User-Friendly × Fast,” the platform is committed to delivering high-performance, low-barrier trading experiences. By optimizing the matching engine and user interaction processes, Zoomex supports millisecond-level order execution and enhances usability through a minimalist interface.
As the official partner of the Haas F1 team, Zoomex demonstrates speed, precision, and cutting-edge technology both on the track and in trading. Zoomex is also proud to announce a global exclusive brand ambassador partnership with world-class goalkeeper Emiliano Martínez, further strengthening brand image and user trust through his professional spirit and global influence.
The platform also prioritizes security and compliance, holding regulatory licenses including Canada MSB, US MSB, US NFA, and Australia AUSTRAC, and has undergone audits by blockchain security firm Hacken. With flexible identity verification and a free trading system, Zoomex is building a faster, safer, and more accessible trading environment for users worldwide.
Cardano price is trading near its weakest levels of the year. The token is down roughly 24% over the past 30 days and about 5% over the past 24 hours, hovering close to its yearly low near $0.37. What makes this move stand out is not just the size of the drop, but the structure behind it.
In the span of just two months, Cardano has completed two separate bearish continuation breakdowns, putting fresh pressure on the chart and raising the risk of a deeper move.
Two Bearish Breakdowns in Two Months Signal Structural Weakness
The first breakdown formed in early November. ADA built a bearish flag through late October, then broke down around November 11. That move led to a sharp decline, with the price falling roughly 38% from the flag’s high.
After a brief consolidation, Cardano repeated the pattern. A second bearish flag developed through late November and early December. On December 11, ADA broke down again, confirming a second continuation move in just two months.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
When markets print repeated bearish continuation patterns without meaningful recovery, it signals sustained seller control rather than panic selling. If the current breakdown follows the same measured-move logic as the first, downside targets begin clustering near the $0.25 zone.
Why This Weakness Itself Could Limit Further Damage
Despite the bearish structure, there are two factors that slightly soften the downside risk.
First, derivatives positioning is already skewed heavily bearish. Gate’s liquidation data shows long leverage is thin, with only about $27 million in long positions, while short exposure sits near $135 million, 5x more. Most long liquidation clusters end around $0.36, meaning forced selling pressure drops sharply at that level. Fewer crowded longs reduces the chance of a liquidation cascade.
Second, long-term holder behavior has stabilized. The 1-year-to-2-year cohort, often viewed as higher-conviction holders, has sharply reduced spending, as seen via the Spent Coin metric, which groups coin movements by cohorts.
Coins moved by this group fell from 666.24 million ADA to just 2.48 million ADA since December 10, a decline of almost 99.6%. That suggests selling pressure from committed holders is drying up, even as the price remains weak.
In simple terms, ADA’s weakness has scared off leverage and slowed long-term selling, which can act as a temporary brake during broader market stress.
Key ADA Price Levels to Watch
The Cardano price chart remains fragile. $0.36 is the most important near-term support. The same level is highlighted by the liquidation map shared earlier.
A clean break below it opens the door to $0.33, and from there, the measured breakdown target near $0.25 comes into focus.
For any bullish reset, ADA would need to reclaim $0.48. Without that, rallies remain corrective, not trend-changing.
Two breakdowns in two months define the trend. Weakness itself may slow the fall; however, unless the structure improves, the risk of a $0.25 test cannot be ignored.
Bishkek, Kyrgyz Republic, December 16, 2025 — An independent audit has formally verified the physical gold reserves backing USDKG, the gold-backed stablecoin introduced under the regulatory framework of the Kyrgyz Republic. The review confirms that the full reserve quantity, chain of custody, and valuation align with the issuance of the first 50 million USDKG tokens, reinforcing the stablecoin’s position as one of the most transparent commodity-backed digital assets in the market.
The audit was conducted by Kreston Global, a major international accounting network. Their review followed ISRS 4400, Agreed-Upon Procedures Engagements, and included physical inspection, documentation checks, valuation analysis, contractual verification, and on-chain wallet control testing. The auditors confirmed the presence of 30 gold bars, totaling approximately 376 kilograms, all sealed, stamped, and stored in a secure vault operated by a licensed private reserve manager.
According to the report, the gold reserves were valued at 50.3 million U.S. dollars based on LBMA pricing as of November 28, 2025. At the time of the audit, the value of the reserves exceeded the quantity of USDKG in circulation. This establishes a higher standard of collateralization than typically seen in asset-backed stablecoins, where real-time physical reserve audits remain rare.
The audit also tracked the complete transfer path of the gold reserves. Kreston reviewed documentation confirming movement from the Ministry of Finance to the private reserve management entity and then to the secure banking facility. Serial numbers, weight certificates, purity details, acceptance acts, and storage contracts were all examined for consistency, while the 15 sealed boxes containing the bars were checked against the official packing lists.
In addition to the physical reserve inspection, Kreston verified control of the official Ethereum and Tron smart contract wallets used for USDKG issuance. The auditors requested on-chain transactions to confirm active control, further reinforcing the project’s transparency claims and bridging the link between token supply and verified reserves.
The publication of the audit addresses several of the most common concerns surrounding gold-backed digital assets.
Some observers view gold as outdated or disconnected from modern financial infrastructure. However, the presence of physically inspected and independently confirmed bullion provides a form of collateral that is transparent, measurable, and insulated from commercial bank exposure. This stands in contrast to weaknesses frequently highlighted in fiat-backed models, where reserve visibility can be limited.
The audit findings also help clarify the project’s strategic intent. USDKG is denominated in U.S. dollars and built for global interoperability, which positions it as a predictable and compliant asset rather than a participant in currency rivalry. While the stablecoin is supervised within the Kyrgyz Republic’s regulatory framework, its purpose is economic efficiency and transparent value transfer, not geopolitical signaling. This distinction matters as governments and institutions increasingly evaluate how asset-backed stablecoins fit into international financial systems.
The project’s operating structure further supports this positioning. USDKG is supervised by the Ministry of Finance but operated independently by a licensed private entity. This design provides state-level oversight without political influence in operational decisions and helps align the project with international best practices.
The findings arrive during a period of broader market interest in commodity-backed stablecoins. Tether recently became one of the largest private holders of gold, signaling a shifting preference among institutions and crypto market participants toward reserves backed by real, verifiable assets. USDKG joins this emerging category with a level of transparency that includes both fully public smart contracts and now a detailed third-party audit of physical holdings.
The Kyrgyz Republic has spent the past several years establishing a clear legal structure for virtual assets, including licensing for miners, exchanges, token issuers, and custodial service providers. USDKG reflects the trajectory of these policies by pairing innovation with regulatory discipline. The audit strengthens credibility with exchanges, institutional partners, and regulators evaluating gold-backed digital assets and offers a reference point for how emerging markets can build responsible, asset-backed financial instruments with documented reserves. With the audit now published on USDKG’s official website, they are taking a significant step toward establishing trust in a category where transparency often falls short. The combination of verifiable physical collateral, visible on-chain data, and adherence to international reporting standards gives the stablecoin a framework designed for long-term reliability and global interoperability.
[Panama City, Dec. 16, 2025] –BingX, a leading cryptocurrency exchange and Web3 AI company, has reached a major milestone by surpassing 40 million global users. This achievement marks an extraordinary 100% year-over-year growth, cementing BingX’s position as one of the fastest-growing platforms in the industry.
Pioneering Innovation in the Crypto Space
BingX is at the forefront of innovation in the crypto space. The exchange launched a groundbreaking $300 million commitment to AI, making a strong push into an AI-native crypto exchange. This bold move has attracted over 3 million early users who are trading with BingX AI Bingo and BingX AI Master, which provide advanced insights and enhance decision-making.
In addition, BingX has introduced a CeDeFi approach with the launch of BingX Chainspot, a centralized exchange system with decentralized transparency, marking a first in the industry. This hybrid model blends the strengths of centralized exchanges with the security and transparency of decentralized finance (DeFi), offering users enhanced flexibility and trust in their trading environment.
Early Access to the Market and Offerings
BingX has further enhanced its trading offerings with improvements across both spot and futures trading:
Futures trading: BingX ranked among the top 5 global derivatives platforms, offering 24/7 global support and powerful trading features. Key upgrades include a Separate Isolated Margin Mode for more flexible futures trading and integration with TradingView for advanced charting and strategy execution. Additionally, BingX continues to innovate by becoming one of the first exchanges to offer WLFI pre-market futures trading and RWA Index Perpetuals.
Spot trading: The platform has launched a one-stop Spot Listing hub and Listing FastTrack, a faster pathway for innovative projects to be listed. In addition, BingX introduced the Shards Program, an new rewards system that offers users access to exclusive airdrops, trading fee discounts, and VIP privileges, enhancing their engagement with the platform. With over 1,100 trading pairs and integrations with 170 public chain ecosystems, BingX is at the forefront of new token listings, including early access to Monad (MON), Pump.fun XPool, and ZORA.
Copy Trading 2.0: As a pioneer in crypto copy trading, BingX’s community has grown to 400,000 traders with a cumulative trading volume of $580 million, and cumulative trading orders of 1.3 billion. The new Copy Trading 2.0 introduced a revamped interface, optimized workflows, and advanced customization features that empower traders by making trading simpler and more user-centric.
Uncompromising Commitment to Security
BingX has always prioritized user security and transparency. The platform has consistently provided publicly accessible, verifiable 100% Proof of Reserves since 2022, reinforcing its commitment to accountability. To further protect users, BingX launched a $150 million Shield Fund and has achieved ISO 27001 certification, meeting the highest security standards in the industry. In addition, BingX has attained PCI DSS v4.0.1 certification for its fiat business, ensuring robust safeguards for both user data and financial transactions.
User-centric Enhancements for the Community
BingX’s dedication to its users is exemplified through a series of new community-driven initiatives designed to enhance the trading experience.
VIP Program: The revamped VIP program now offers zero-fee trading and exclusive concierge services, further elevating the platform’s appeal to high-volume traders.
BingX Academy 2.0 Upgrades: A major overhaul of BingX Academy has brought a more intuitive interface, expanded resources, and interactive learning tools, helping users navigate the complexities of digital assets with ease.
Strategic Investments in the Future of Web3
BingX has shown continued dedication to the evolution of the Web3 space, with BingX Labs investing $16 million in promising Web3 projects. This commitment underscores BingX’s role as a driving force in the future of decentralized technologies. Additionally, BingX is nurturing the next generation of crypto leaders through its TalentX program, empowering young talent to explore career opportunities within the digital asset industry.
Beyond innovation and trading, BingX has maintained its corporate social responsibility efforts, making impactful donations globally, including a donation of $200,000 USD to the “One Light, Thousands of Hearts” initiative in Vietnam, and a donation of HKD $5 million to the Support Fund for Wang Fuk Court in Tai Po, Hong Kong, following a tragic fire disaster.
“Reaching 40 million users is more than just a number,” said Vivien Lin, Chief Product Officer of BingX.
“It represents the recognition we have received from our users, partners, and the broader crypto community. Every milestone reflects our unwavering commitment to innovation, security, and putting our users first, and it motivates us to continue doing more for our users. We always take a step further, and that is the spirit we hope to demonstrate in our Beyond the Alpha campaign.”
To celebrate this significant achievement, BingX is launching its “Beyond the Alpha” campaign, a celebration of its commitment to engaging with users in innovative and meaningful ways. Running from Dec. 15 to Dec. 26, 2025, the campaign invites users to participate in a lucky draw for a chance to win guaranteed prizes, including a limited-edition BingX Field Barista Kit, trading vouchers, and more. Users can earn additional entries by completing daily tasks such as trading, depositing, and referring to new users.
BingX will also release a first-ever branded music video, showcasing the key achievements and reinforcing its dedication to delivering secure, user-friendly, and responsive products and services.
About BingX
Founded in 2018, BingX is a leading crypto exchange and Web3 AI company, serving a global community of over 40 million users. With a comprehensive suite of AI-powered products and services, including derivatives, spot trading, and copy trading, BingX caters to the evolving needs of users across all experience levels, from beginners to professionals. Committed to building a trustworthy and intelligent trading platform, BingX empowers users with innovative tools designed to enhance performance and confidence. In 2024, BingX became the official crypto exchange partner of Chelsea Football Club, marking an exciting debut in the world of sports sponsorship.
US-listed spot XRP exchange-traded funds (ETFs) have recorded one month of consecutive net inflows since their November 13 debut, setting them apart from Bitcoin and Ethereum ETFs that experienced billions in outflows over the same period.
The milestone marks a turning point for XRP, which was excluded from traditional investment vehicles for years due to regulatory uncertainty surrounding Ripple’s legal battle with the US Securities and Exchange Commission. Now, with spot ETFs lifting that barrier, institutional capital is flowing into the asset at a pace that has surprised even bullish observers.
A Stark Contrast With BTC and ETH
According to SoSoValue data, XRP spot ETFs have attracted fresh capital every trading session since launch, lifting cumulative net inflows to approximately $990.9 million as of December 12. Total net assets across the five products climbed to about $1.18 billion, with no single day of net redemptions recorded.
Source: Sosovalue
The consistency stands out in a market where even the largest crypto ETFs have struggled to maintain steady momentum. Over the same 30-day window, US spot Bitcoin ETFs recorded approximately $3.39 billion in net outflows, including a single-day withdrawal of roughly $903 million on November 20. Ethereum ETFs followed a similar pattern, posting about $1.26 billion in net outflows.
The divergence was most pronounced on December 1. On that day, XRP ETFs brought in $89.65 million while Bitcoin ETFs gained just $8.48 million—roughly one-tenth of XRP’s figure. Ethereum ETFs, meanwhile, recorded more than $79 million in net outflows.
December trading has further highlighted the contrast. Bitcoin spot ETFs recorded four negative flow days compared to eight positive days, while Ethereum ETFs displayed similar volatility with five negative days and seven positive days through December 12. XRP ETFs maintained positive flows throughout.
Second-Fastest to $1 Billion
Ripple CEO Brad Garlinghouse noted that XRP has become one of the fastest spot crypto ETFs to reach $1 billion in assets under management in the US, trailing only Ethereum.
“There’s pent-up demand for regulated crypto products,” Garlinghouse stated. He highlighted Vanguard’s recent decision to offer access to crypto ETFs through traditional retirement and investment accounts, noting that crypto is now “accessible to millions more people who don’t need to be experts in the technology.”
Garlinghouse also emphasized that longevity, stability, and community strength are increasingly essential themes for these new “off-chain crypto investors.”
👀<4 weeks, and XRP is now the fastest crypto Spot ETF to reach $1B in AUM (since ETH) in the US.
With over 40 crypto ETFs launched this year in the US alone, a few points are obvious to me:
1/ there’s pent up demand for regulated crypto products, and with Vanguard opening up…
“We’ve seen strong demand for our current Spot-Quoted Bitcoin and Ether futures, with more than 1.3 million contracts traded since launched in June, and we are pleased to add XRP and SOL to our offering,” said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group.
The existing Spot-Quoted Bitcoin and Ether futures have experienced substantial growth, with December average daily volume reaching 35,300 contracts and a record trade day of 60,700 combined contracts on November 24.
Price Lags Behind as Accumulation Signals Build
Market analysts suggest that the uninterrupted inflow pattern indicates that XRP ETFs are being used as structural allocations rather than as tactical trading instruments.
“This is just 5 spot ETFs. No BlackRock, no 10-15 ETFs exposure yet, but they are coming,” one analyst noted, projecting that if weekly inflows remain near $200 million, cumulative inflows could surpass $10 billion by 2026.
Source: BeInCrypto
Despite strong ETF inflows, XRP’s price performance has remained subdued. The token has declined nearly 15% over the past month and was trading at $1.89 at press time.
The disconnect between inflows and price may reflect the mechanics of ETF markets. ETF creation and redemption involve complex arbitrage processes that delay price effects. Market makers hedging their positions may also blunt some of the immediate impact from inflows.
President Donald Trump said he would consider pardoning Keonne Rodriguez, the CEO of privacy-focused Bitcoin wallet Samourai, who was sentenced to five years in federal prison last month for money laundering charges.
The statement reignited debate over the privacy technology of cryptocurrencies. It also raised questions about whether other convicted developers, including Tornado Cash’s Roman Storm, might receive similar presidential clemency.
Calls for More Pardons Meet Market Frustration
During a press briefing on Dec. 15, a reporter asked Trump about Rodriguez’s case, noting it began under the Biden administration but continued under his Department of Justice. Trump responded, “I’ve heard about it. I’ll look at it.” The President added that he would review the matter after the reporter mentioned widespread support for clemency within the crypto community.
Rodriguez, 37, and co-founder William Lonergan Hill, 67, were convicted of operating a cryptocurrency mixing service. The prosecutors say the two facilitated the laundering of over $237 million in criminal proceeds. Rodriguez received five years, while Hill received four years, with both ordered to pay $250,000 in fines.
The announcement drew varied responses. Some supporters expressed hope that the decision would provide momentum for crypto-friendly policies. One X user even called for extending clemency to Do Kwon, the embattled founder of the collapsed Terra/Luna ecosystem.
However, critics pointed to broader market performance under Trump’s presidency. Since he took office, there have been significant declines across major cryptocurrencies, with some tokens down more than 70%.
Prosecution’s Case Against “Simple Developer” Narrative
The Department of Justice presented evidence that challenges the portrayal of Rodriguez and Hill as mere privacy tool developers. According to the Nov. 19 sentencing announcement, prosecutors demonstrated that the founders actively promoted their services to criminal users.
Hill allegedly marketed Samourai on Dread, a darknet forum, directly responding to a user seeking “secure methods to clean dirty BTC” by recommending Whirlpool as a superior option. Rodriguez reportedly encouraged Twitter hackers in 2020 to funnel stolen proceeds through the mixing service. He even expressed disappointment when they chose a competitor.
Most damaging was Rodriguez’s own description of mixing as “money laundering for bitcoin” in WhatsApp messages. At the same time, the company’s marketing materials acknowledged targeting “Dark/Grey Market participants” moving proceeds from “illicit activity.”
Prosecutors said criminal funds processed through Samourai originated from drug trafficking, darknet marketplaces, cyber intrusions, fraud, sanctioned jurisdictions, murder-for-hire schemes, and a child pornography website.
Broader Implications
The case has reignited debate over developer liability for user actions on decentralized platforms. Privacy advocates argue that the prosecution sets a dangerous precedent for open-source software development, while law enforcement maintains that actively promoting criminal use crosses legal boundaries.
Online discussions have expanded to question whether Roman Storm, the Tornado Cash developer convicted on similar charges in August, might also be considered for clemency. Storm was found guilty of conspiracy to operate an unlicensed money transmitting business. The jury deadlocked on more serious money laundering and sanctions violation charges.
Congress continues to debate cryptocurrency regulation. The lawmakers are introducing multiple bills to clarify the legal status of privacy-enhancing technologies, though none have passed into law.
Trump has previously pardoned several crypto figures, including former Binance CEO Changpeng Zhao and Silk Road founder Ross Ulbricht, establishing a pattern that fuels speculation about future clemency decisions in the sector.
The US Senate has delayed the long-awaited Crypto Market Structure Bill, pushing final consideration into early 2026. Lawmakers ran out of legislative time as internal disputes stalled consensus on key provisions.
The delay prolongs regulatory uncertainty for crypto exchanges, issuers, and institutional investors operating in the US.
Why the Crypto Market Structure Bill Was Delayed
The bill, built on the House-passed Digital Asset Market Clarity (CLARITY) Act, aims to define how digital assets are regulated. It would formally split oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
However, unresolved disagreements over jurisdiction, DeFi oversight, and consumer protections slowed progress.
🚨NEW: In a statement, a Senate Banking Committee spokesperson confirmed my reporting from this AM that @BankingGOP will not hold a market structure markup this year:
“Chairman Scott and the Senate Banking Committee have made strong progress with Democratic counterparts on… pic.twitter.com/op5rIyMn3d
Senate negotiators struggled to reconcile differences between the Banking and Agriculture committees. These committees oversee the SEC and CFTC respectively, and both claim authority over crypto spot markets.
As a result, lawmakers could not finalize language that both sides supported before the session ended.
DeFi regulation also emerged as a major sticking point. Some senators pushed for exemptions for decentralized protocols with no controlling intermediary.
Others warned that broad exemptions could weaken enforcement and create regulatory gaps.
Consumer advocacy groups added pressure by opposing parts of the bill. They argue the framework shifts power away from the SEC and risks weakening investor protections after several high-profile crypto failures.
This opposition prompted further revisions and slowed negotiations.
Despite the delay, the bill differs sharply from other crypto legislation already passed. Unlike the GENIUS Act, which focuses narrowly on stablecoins, the market structure bill targets the entire crypto trading ecosystem.
It sets rules for exchanges, brokers, custody providers, and token issuers under a unified federal framework.
The bill also goes further than enforcement-led regulation. It introduces formal asset classification standards and limits reliance on court rulings to define whether tokens are securities or commodities.
Lawmakers say this approach would replace regulatory uncertainty with statutory clarity.
Diplomatic efforts to end the Russia–Ukraine war gained visible momentum on Monday, as US, Ukrainian, and European officials outlined the foundations of a possible ceasefire and post-war security framework.
The developments mark one of the most substantive diplomatic advances since the conflict began. The positive signs are already prompting investors to reassess geopolitical risk across global markets, including cryptocurrencies.
For crypto, which has recently suffered sharp declines tied to global risk-off dynamics, a ceasefire could alter sentiment, but not without important caveats.
Diplomatic Momentum Builds For Russian-Ukraine Ceasefire
Negotiators from Ukraine, the US, and key European allies met in Berlin this week for an intensive round of talks focused on ending hostilities and preventing renewed conflict.
Officials involved in the discussions described progress as significant, with alignment reached on most elements of a proposed framework.
US officials confirmed that Washington has agreed to support meaningful security guarantees for Ukraine as part of a peace arrangement, addressing Kyiv’s long-standing demand for protection against future aggression.
Flood of positive-sounding headlines as US official briefs media on Ukraine talks, says 90% of issues solved, Polymarket pricing just 3% odds of ceasefire this year pic.twitter.com/IMVlegXJGW
According to officials familiar with the talks, negotiators are now aligned on roughly 90% of the framework.
However, remaining disagreements centered on territorial questions in eastern Ukraine, particularly in the Donetsk region.
European leaders reinforced the diplomatic push by endorsing plans for a European-led multinational force that would assist in stabilizing Ukraine if a ceasefire holds. The proposal also includes a US-backed monitoring and verification mechanism designed to oversee ceasefire compliance and respond to violations.
Most recent polls suggest that only 38% of Ukraine's population are in favor of giving up any territory, even if it means the war must drag on. pic.twitter.com/kSsAPc6ZsS
Public opinion inside Ukraine continues to act as a constraint on negotiations. Polling cited by Reuters shows that most Ukrainians oppose major territorial concessions or limits on the country’s military capabilities unless backed by firm and enforceable security commitments.
Fighting Continues Despite Negotiations
Even as diplomacy advances, military operations have not paused. On Monday, Ukrainian forces carried out additional long-range drone strikes against Russian oil infrastructure in the Caspian Sea, disrupting production at key platforms for the third time in recent days.
The attacks highlight Kyiv’s strategy of applying economic pressure on Russia’s energy revenues while negotiations remain unresolved.
Ukraine has opened another front against Russia. Ukraine has begun striking Russian oil platforms and ships in the Caspian Sea. Russia is helpless to stop these Ukrainian drone and missile attacks. pic.twitter.com/bD3YW5Yg4P
Ukraine also claimed it struck a Russian Kilo-class submarine in the port of Novorossiysk using underwater drones.
If confirmed, would underscore the growing sophistication of Ukraine’s asymmetric naval capabilities. Independent verification of the claim remains limited, and Russian officials have denied damage.
A credible ceasefire would remove one of the largest sources of global tail risk. In markets where risk sentiment is a major driver, such a de-escalation can:
Support assets like Bitcoin and major altcoins as investors rotate back toward higher-beta investments.
Lower implied volatility across equity and digital asset markets.
The mechanics are straightforward: with reduced geopolitical risk, funds that fled to safety may redeploy into risk assets, potentially lifting Bitcoin and Ethereum prices. A stronger risk appetite could also benefit altcoins, which tend to outperform in relief rallies.
Polymarket Odds On Russia-Ukraine Ceasefire By Early 2026 Have Increased. Source: Polymarket
2. Energy and Inflation Narrative
A sustained ceasefire could also affect commodity markets, especially if it lessens pressure on energy prices. Lower or stabilized global energy prices could:
Dampen inflation expectations in Europe and elsewhere.
Reduce pressure on central banks to maintain restrictive policy settings.
Allow liquidity conditions to ease further, which historically has supported higher valuations in risk assets such as cryptocurrencies.
However, this transmission is neither direct nor immediate. It depends on how quickly markets perceive structural changes in energy markets and central bank policy trajectories.
What Might Limit the Crypto Recovery
While a ceasefire can reduce geopolitical risk, it cannot fully offset macro headwinds that influenced crypto markets over the past months:
Derivative market positioning: Leverage has been a significant catalyst of past crypto declines. Relief rallies can trigger fresh positioning and high funding rates, only to be reversed if macro forces reassert.
Liquidity conditions: A ceasefire is good news, but sustained asset price rallies require ample liquidity. Without clearer signals of easing financial conditions, crypto assets may see only transient relief moves.
Bitcoin Dip When Russia Invaded Ukraine in 2022. Source: Reuters
A Ceasefire Would Be Positive, But Not Sufficient
An agreed ceasefire between Russia and Ukraine would mark a monumental shift in geopolitics and initially bolster risk assets, including cryptocurrencies.
However, the broader impact on crypto markets will depend heavily on how the ceasefire intersects with liquidity conditions, central bank policy expectations, and global risk appetite.
In the short term, crypto could see a meaningful relief rally, driven by sentiment and risk reallocation.
Over the medium term, the trend will likely hinge on whether ceasefire outcomes tangibly ease inflation and liquidity pressures — the primary macro drivers that have influenced digital assets in recent months.
Bitcoin slid to the $85,000 level on December 15, extending its recent decline as global macro risks, leverage unwinding, and thin liquidity collided. The drop erased more than $100 billion from the total crypto market cap in just days, raising questions about whether the sell-off has finished.
While no single catalyst caused the move, five overlapping forces pushed Bitcoin lower and could keep pressure on prices in the near term.
Bank of Japan Rate Hike Fears Triggered Global De-Risking
The biggest macro driver came from Japan. Markets moved ahead of a widely expected Bank of Japan rate hike later this week, which would take Japanese policy rates to levels unseen in decades.
Even a modest hike matters because Japan has long fueled global risk markets through the yen carry trade.
🚨 JAPAN WILL CRASH BITCOIN IN 5 DAYS!!!
People are seriously underestimating what Japan is about to do to Bitcoin.
The Bank of Japan is expected to raise rates again on Dec 19.
That might not sound like a big deal… until you remember one thing:
For years, investors borrowed cheap yen to buy higher-risk assets such as equities and crypto. As Japanese rates rise, that trade unwinds. Investors sell risk assets to repay yen liabilities.
Bitcoin has reacted sharply to previous BOJ hikes. In the last three instances, BTC fell between 20% and 30% in the weeks that followed. Traders began pricing in that historical pattern before the decision, pushing Bitcoin lower in advance.
Bank of Japan is about to hike rates with 0.25% on December 19
Bitcoin dumped the last 3 times the BoJ hiked interest rates:
At the same time, traders pulled back risk ahead of a dense slate of US macro data, including inflation and labor market figures.
The Federal Reserve recently cut rates, but officials signaled caution about the pace of future easing. That uncertainty matters for Bitcoin, which has increasingly traded as a liquidity-sensitive macro asset rather than a standalone hedge.
With inflation still above target and jobs data expected to weaken, markets struggled to price the Fed’s next move. That hesitation reduced speculative demand and encouraged short-term traders to step aside.
As a result, Bitcoin lost momentum just as it approached key technical levels.
More than $200 million in leveraged long positions were liquidated within hours, according to derivatives data. Long traders had crowded into bullish bets after the Fed’s rate cut earlier this month.
When prices slipped, liquidation engines sold Bitcoin automatically to cover losses. That selling pushed prices lower, triggering further liquidations in a feedback loop.
This mechanical effect explains why the move was fast and sharp rather than gradual.
Crypto Liquidations On December 15. Source: Coinglass
Thin Weekend Liquidity Magnified Price Swings
The timing of the sell-off made it worse.
Bitcoin broke down during thin weekend trading, when liquidity is typically lower and order books are shallow. In those conditions, relatively small sell orders can move prices aggressively.
Large holders and derivatives desks reduced exposure into low liquidity, amplifying volatility. That dynamic helped pull Bitcoin from the low-$90,000 range toward $85,000 in a short window.
Weekend breakdowns often look dramatic even when broader fundamentals remain unchanged.
During the sell-off, on-chain and market data showed Wintermute offloading a large amount of Bitcoin — estimated at over $1.5 billion worth — across centralized exchanges. The firm reportedly sold BTC to rebalance risk and cover exposure following recent volatility and losses in derivatives markets.
Because Wintermute provides liquidity across both spot and derivatives venues, its selling carried outsized impact.
Wintermute Sending Bitcoin to Centralized Exchanges. Source: Arkham
The timing of the sales also mattered. Wintermute’s activity occurred during low-liquidity conditions, amplifying downside moves and accelerating Bitcoin’s slide toward $85,000.
What Happens Next?
Whether Bitcoin drops further now depends on macro follow-through, not crypto-specific news.
If the Bank of Japan confirms a rate hike and global yields rise, Bitcoin could remain under pressure as carry trades unwind further. A strong yen would add to that stress.
However, if markets fully price in the move and US data softens enough to revive rate-cut expectations, Bitcoin could stabilize after the liquidation phase ends.
For now, the December 15 sell-off reflects a macro-driven reset, not a structural failure of the crypto market — but volatility is unlikely to fade quickly.
According to the Crypto Fear & Greed Index, the crypto market sentiment in the third week of December remains dominated by fear, with a score of extreme fear. This negative sentiment has caused short positions to gain the upper hand.
However, several altcoins have their own catalysts that could trigger liquidations of these short positions. Which altcoins are they, and what specific risks do they face?
1. Solana (SOL)
The 7-day liquidation heatmap for SOL shows that the potential liquidation volume of short positions is twice that of long positions.
Specifically, if SOL rises to $147 this week, traders holding short positions could suffer losses of up to $1 billion. In contrast, if SOL falls below $120, long traders could face liquidations worth around $500 million.
Several factors suggest that traders should be cautious when holding short positions this week.
First, SOL ETFs recorded seven consecutive days of positive inflows last week. Notably, the Bitwise SOL ETF has maintained positive inflows for 33 straight days since launch. It currently holds more than $600 million worth of SOL. This trend indicates sustained institutional demand.
Second, SOL has established strong support around the $130 level over the past four weeks. In addition, positive news about XRP expanding its DeFi use cases on Solana through Hex Trust has improved market sentiment.
As a result, SOL has solid grounds for a recovery this week, which could trigger short liquidations.
2. Cardano (ADA)
Similar to SOL, overall negative market sentiment has encouraged short-term ADA derivatives traders to increase capital allocation and leverage on short positions.
This behavior has significantly increased the total short liquidation volume. If ADA rises to $0.45 this week, short positions could incur losses of up to $50 million. Conversely, if ADA drops to $0.35, long positions could face liquidations of around $19.5 million.
One key factor that ADA short traders should consider to reduce risk is the positive sentiment surrounding the Midnight project.
Midnight Network is a new blockchain developed by Input Output Global (IOG), the company behind Cardano, founded by Charles Hoskinson.
Midnight Network focuses on privacy through zero-knowledge proof technology, specifically ZK-SNARKs. The NIGHT token has surged more than 150% over the past seven days. The project also won BeInCrypto’s “Breakthrough of the Year” award.
Midnight has been voted @beincrypto's Breakthrough of the Year & this win belongs entirely to the community. 🏆🕛
Thank you to everyone who shared, voted, & continues to support privacy as a fundamental right & what Midnight is building.
The growing demand for NIGHT is driving demand for ADA. According to the Taptool trading platform, NIGHT recorded DEX trading volume exceeding 85 million ADA over the past five days. Additionally, ADA holders can earn NIGHT by staking their ADA.
3. PIPPIN
PIPPIN is a meme coin that gained significant attention towards the end of the year. Its market capitalization surged from below $60 million to over $350 million in just three weeks.
The liquidation heatmap indicates that cumulative potential long liquidations remain higher than those of short liquidations. This data suggests that many short-term traders still expect prices to continue rising.
However, this expectation carries significant risk. A recent analysis by the on-chain data tracking account Evening Trader Group revealed that 93 wallets currently hold 73% of the total supply.
$PIPPIN | Case Study: Supply Control & The Hidden Architecture Behind the Rally
93 wallets now hold 73% of the supply, organized into three well-defined clusters based on accumulation origin.$PIPPIN keeps climbing with zero signs of exhaustion. The on-chain picture shows why:… pic.twitter.com/MVvPCWq6rh
These wallets are divided into three main accumulation clusters. Each cluster shows distinct origins and behavioral patterns. According to Evening Trader Group, this accumulation may be the primary driver behind the price surge. On the other hand, selling pressure could emerge at any time.
In addition, the project-linked account (ThePippinCo) has not posted any updates since June. This silence has raised concerns about the team’s commitment to the project.
If PIPPIN falls below $0.30 this week, more than $9 million in long positions could be liquidated. This figure could be even higher if PIPPIN experiences a sharp dump, similar to the fate of other manipulated meme tokens.
The crypto market remains cautious, but some tokens are facing important tests this week. As prices move sideways, attention is shifting toward three altcoins to watch in the third week of December. Each has a specific catalyst approaching, from supply changes to network events and shifting holder behavior.
These setups could drive sharp moves if buyers or sellers take control in the days ahead.
Sei (SEI)
SEI has been under steady pressure heading into mid-December, and price action reflects that caution. The token is down roughly 23% over the past month and more than 60% over the last three months, keeping sentiment fragile as the market looks for direction.
At the time of writing, SEI trades near $0.124, consolidating inside a broader falling wedge structure on the daily chart. This pattern often appears late in downtrends, where selling pressure slows, and the price begins to compress. For now, SEI is hovering just above the lower boundary of that structure, making the next few sessions critical. That tension qualifies SEI to be on the altcoins to watch list.
Momentum indicators offer a mixed but interesting signal. Between December 5 and December 14, the SEI price made a lower low, while the Relative Strength Index (RSI) formed a higher low. RSI measures momentum strength, and this bullish divergence suggests sellers may be losing control, even as price remains weak.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
That said, near-term risk remains elevated due to SEI’s scheduled token unlock on December 15. Around 55.56 million SEI, roughly 1.08% of the circulating supply, is set to enter the market. Token unlocks often increase short-term selling pressure, especially when broader sentiment is cautious.
Key levels define the setup clearly. A clean move above $0.159 would signal that buyers are absorbing unlock-related supply and could open a rebound toward higher resistance zones. That includes $0.193 and even higher.
On the downside, a drop of roughly 3% from current levels, to $0.120, risks a breakdown toward the lower trendline. That would weaken the bullish divergence thesis.
Bittensor (TAO)
Bittensor price action has compressed into a tight range ahead of its upcoming halving, setting up a clear decision point. TAO has been trading inside a symmetrical triangle on the daily chart, showing balance between buyers and sellers after weeks of downside pressure. That kind of buyer-seller tussle makes it one of the top altcoins to watch in the third week of December.
1/
The TAO Halving is approaching, Here’s what changes and what stays the same… 🧵 pic.twitter.com/0pwLdZLeCD
TAO is down around 15.5% over the past month and roughly 6.6% over the last seven days. Short-term weakness continues, but volatility has dropped, which often appears before larger moves. This structure reflects indecision rather than outright bearish control.
The halving acts as the key backdrop. Bittensor’s halving reduces token emissions, tightening new supply. Historically, such events do not guarantee immediate upside, but they often act as a catalyst when the price is already compressed.
From a technical view, the first bullish trigger sits near $301. A daily close above this level would break the upper trendline of the triangle and signal renewed strength. That move opens a path toward $321, followed by $396 if momentum builds and broader market conditions cooperate.
Downside risk remains. $277 is critical support. A breakdown below it weakens the structure and exposes $255, with $199 as a deeper risk zone if sentiment deteriorates.
Aster (ASTER)
Aster stands out as one of the altcoins to watch in the third week of December because of a clear tug-of-war between whales and the broader market.
On-chain data shows aggressive whale accumulation heading into this week. Over the past seven days, whale-held ASTER balances jumped by about 42.7 million tokens, rising from roughly 39.85 million to 82.54 million ASTER. That is a 107% increase, signaling strong conviction from large holders ahead of the third week of December.
At the same time, exchanges tell a different story. Exchange balances took a 10.48% jump. This suggests possible retail selling even as whales accumulate.
That buyer-seller conflict is also visible on the chart. ASTER has been correcting since November 19 but is now compressing inside a triangle pattern, reflecting indecision. During this phase, a hidden bullish divergence has formed. Between November 3 and December 14, the price made a higher low while the Relative Strength Index (RSI) made a lower low, which often signals exhausting selling pressure.
That’s often associated with price rebounds. If this setup plays out, the first level to watch is $0.94. A daily close above it would break the triangle resistance and open the path toward $0.98, followed by a potential 16% move to $1.08 if momentum builds and whale support persists.
On the downside, losing $0.88 would invalidate the bullish divergence and expose $0.81, shifting control back to sellers.
Embedded finance has moved from payments into lending. Trading is the logical next step, and platforms that force users to hop between providers to access different asset classes are losing ground. Patrick Murphy, Managing Director for the UK and EU at Eightcap, argues that multi-asset access has to be built in from the start if platforms want to keep users engaged.
But meeting that expectation isn’t as simple as adding new instruments. It raises deeper questions about infrastructure. How do you embed regulated derivatives alongside crypto? How do stablecoins fit into cross-border settlement when banks still operate on legacy rails? And what happens when tokenized assets start functioning as collateral across both traditional finance and DeFi?
In this conversation with BeInCrypto, Murphy breaks down how Eightcap is approaching those challenges, from embedding compliance into its API stack to preparing for a world where Bitcoin, equities, and gold increasingly move on-chain.
BeInCrypto: Eightcap Embedded allows brokers, exchanges, and wallets to integrate multi-asset trading through a single API. What specific market signals or client needs convinced you that embedded multi-asset access would become the next frontier in platform engagement?
Patrick Murphy: “When we looked at where the market was heading, a few things stood out. Across brokers, exchanges, and other fintechs, we saw a convergence of client needs. Users wanted the ability to move between crypto, forex, and commodities seamlessly. Platforms were losing engagement when users had to leave to access different asset classes, causing a retention challenge. If you couldn’t offer multi-asset exposure natively, then your clients were going to trade elsewhere.
Embedded finance was reshaping expectations. Just as payments and lending became embedded within non-financial ecosystems, trading was the next logical step. We saw an opportunity to bring that same model to trading, turning partners into all-in-one investment hubs rather than single asset providers.
We also found that traders today value experience as much as execution; they want real-time, frictionless access to the markets. The Eightcap Embedded multi-asset capability enables that ecosystem, where a trader doesn’t just buy or sell crypto with their exchange but has the opportunity to diversify their assets with derivatives. This increases both engagement and monetisation potential for our clients. Eightcap Embedded wasn’t built in response to a single client need; it emerged from observing the shift towards embedded finance and the behavioural evolution of traders expecting all-in-one access.”
BeInCrypto: Drawing on your background in compliance and payments, how have you approached embedding regulated trading features into partner platforms while maintaining speed and scalability?
Patrick Murphy: “My experience in both the payments and compliance verticals has allowed me to merge regulatory principles with product agility. In payments, I learned that scalability breaks down when compliance is treated as a ‘review step’.
At Eightcap, our embedded trading API is architected with jurisdictional awareness, KYC, AML, and licensing logic that are integrated into the onboarding process and transaction flow. This ultimately means that partners don’t need to build parallel systems; compliance is built in, not bolted on.
By maintaining a compliance core, our partners can launch faster because they’re not revisiting or revalidating core controls.
We position Eightcap Embedded as a ‘compliant-by-design’ infrastructure, allowing brokers, exchanges, and wallets to scale confidently while maintaining trust with both clients and regulators.”
BeInCrypto: Integrating derivatives and crypto products within embedded finance introduces unique technical and risk-management challenges. What were the hardest trade-offs in balancing usability, compliance, and resilience across volatile markets?
Patrick Murphy: “One of our challenges was creating an experience that felt native within partner platforms, while still adhering to regulatory requirements, like client classification under TMD, leverage limits, and margin requirements.
However, this was easily and successfully managed with both our trading teams and legal and compliance teams collaborating to create a working integration for our partners that is compliant.”
BeInCrypto: Eightcap Tradesim rewards users for simulated trading. What have you learned about trader behaviour or education from this experiment, and how has it influenced your approach to onboarding and retention?
Patrick Murphy: “Tradesim revealed that traders learn best when the environment feels real, but the consequences are not. By simulating live market conditions and rewarding training performance, we saw a measurable increase in confidence in trading. Many traders develop real trading discipline, such as tracking positions, understanding the market, and analyzing data. The key takeaway here is that gamified education bridges the gap between curiosity and confidence.
We found that educational engagement directly correlates with trading longevity. Users who spent more than five days in simulated trading were more likely to become active traders.”
BeInCrypto: Stablecoins are reshaping settlement and liquidity. How is Eightcap using them to streamline fiat-crypto flows within embedded platforms, and what overlooked frictions remain around regulation or cross-border transfers?
Patrick Murphy: “Stablecoins have been one of the most meaningful financial innovations of the past decade. They’ve extended access to digital dollars like USD₮, enabling instant, low-cost transfers of size and filling gaps left by fragmented banking and payment systems, particularly across emerging markets and countries outside of the UK, EU, and Australia.
At Eightcap, we’ve been able to use stablecoins to make client funding and withdrawals faster and more reliable, removing friction where traditional rails don’t perform. But there are still regulatory hurdles when it comes to treating this version of the dollar as client money within licensed entities. Existing frameworks weren’t designed for blockchain-based settlement, so custody, safeguarding, and reconciliation requirements remain built around traditional bank money.
Interoperability with USD bank accounts also remains limited. Stablecoins settle 24/7 on-chain, but banks still operate within business hours and siloed payment networks. Until regulation and infrastructure catch up, stablecoins remain a parallel system, highly efficient in their own right, but not yet fully integrated with how regulated financial institutions manage client funds.”
BeInCrypto: What regulatory or technological shifts do you expect will define embedded multi-asset trading over the next two years, and how is Eightcap positioning itself to lead that transition?
Patrick Murphy: “Over the next two years, most assets will begin to move on-chain, not just crypto, but tokenized gold, equities, and cash equivalents. That shift will fundamentally change how capital is used. Once assets exist natively on-chain, they can be deployed far more efficiently as collateral, for settlement, or to reinvest without having to sell or exit positions. Investors will be able to use Bitcoin, tokenized gold, or stocks as dynamic collateral to trade other assets, hedge positions via derivatives, or reinvest instantly.
At Eightcap, we’re partnering with leading crypto technology firms that require a global licensing stack to bring on-chain and hybrid DeFi/traditional finance products to market. By combining regulated multi-asset infrastructure with tokenized assets and stablecoin settlement, we enable our partners to offer seamless, compliant, and capital-efficient trading experiences.
As crypto and tokenization regulations mature, Eightcap is positioning itself as the bridge between traditional capital markets and the emerging on-chain economy.”
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