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.
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.
Bitcoin has broken from its long-standing correlation with equities, marking its first full-year divergence from stocks in over a decade.
The shift highlights a growing disconnect between crypto and traditional markets, raising questions about Bitcoin’s role in the current cycle.
A Historic Market Decoupling
Bitcoin and stocks have historically moved in tandem. However, that relationship appears to have fractured.
According to Bloomberg data, the S&P 500 has climbed more than 16% this year while Bitcoin is down 3%, marking the first such split since 2014.
BREAKING: Bitcoin is headed for its first full-year split from stocks in over a decade, marking the first time since 2014 equities rallied while crypto fell. pic.twitter.com/Ns25xJ2KV2
Such a clean break is unusual even by crypto standards, prompting renewed scrutiny of Bitcoin’s role within global markets. The divergence challenges expectations that regulatory optimism and institutional participation would automatically translate into sustained performance.
It is especially striking given the broader environment, where artificial intelligence stocks are soaring, capital spending is accelerating, and investors are pouring back into equities. At the same time, traditional defensive assets are attracting attention, suggesting investors are reallocating rather than broadly embracing risk.
Crypto-specific pressures, including forced liquidations and a sharp decline in retail participation, have materially exacerbated Bitcoin’s underperformance. Billions of unwound positions have amplified downside moves, turning what began as a correction into an industry retreat.
As these signals accumulate, market sentiment has weakened, sparking debate over whether this represents a routine correction or a more significant structural change.
Normal Pullback Or Something More?
Bitcoin has long behaved as a momentum-driven asset, but the breakdown in sustained upside suggests that leadership within risk markets has shifted elsewhere.
Inflows into Bitcoin ETFs have slowed, prominent endorsements have grown quieter, and key technical indicators are flashing renewed weakness.
Price action reflects that cooling confidence. Bitcoin has struggled to regain momentum since its October peak near $126,000 and is now hovering closer to $90,000, reinforcing the sense that this divergence is being driven by fading conviction rather than short-term volatility alone.
Despite the current divergence, longer time horizons complicate the narrative.
On a multi-year basis, Bitcoin continues to outperform equities, suggesting the recent split may reflect earlier excess gains unwinding rather than a decisive break in trend.
From that perspective, underperformance could still align with a normal pullback within a broader bull-market cycle, despite calendar-year contrasts.
The OCC today conditionally approved five digital asset-oriented companies for national trust bank charters, signaling a measured but tangible expansion of crypto firms into the federal banking system.
The decision challenges claims from parts of the banking industry that crypto cannot comply with regulatory standards. However, it also complicates the sector’s own narrative of a coordinated effort to cut it off from financial services.
The Five Firms Behind Approval
Alongside Ripple National Trust Bank, the Office of the Comptroller of the Currency (OCC) conditionally approved four additional digital asset-focused institutions, signaling a broader regulatory move rather than an isolated exception.
In addition to Ripple, the OCC approved a de novo trust bank application for First National Digital Currency Bank and authorized Circle, BitGo, Fidelity Digital Assets, and Paxos to convert from state charters.
🚨 JUST IN: The OCC just approved conditional national trust bank charters: Ripple. Paxos. BitGo. Fidelity Digital Assets. Circle.
A national trust charter means federal supervision, 50-state reach, and the credibility to custody assets for ETFs, treasuries, and institutions… pic.twitter.com/DWQyX6jKsm
All five approvals remain conditional, requiring each institution to meet specific operational, governance, and compliance standards before final authorization.
“New entrants into the federal banking sector are good for consumers, the banking industry and the economy,” said OCC Comptroller Jonathan Gould in a press release. “They provide access to new products, services and sources of credit to consumers, and ensure a dynamic, competitive and diverse banking system.”
The unifying factor across these firms is their business model and regulatory positioning within the financial system.
None of them intends to operate as a full-service commercial bank offering deposits or traditional lending products. Instead, they focus on custody, settlement, and digital asset infrastructure designed primarily for institutional clients.
For established players like Fidelity and Paxos, a national charter provides a single federal supervisor and nationwide authority. That shift replaces fragmented state-level oversight, simplifying regulatory engagement for institutional-scale operations.
For newer entrants such as Ripple National Trust Bank and First National Digital Currency Bank, the approvals open federal access without consumer banking exposure.
Taken together, the approvals suggest the OCC is not blocking crypto firms, but refining which models gain entry.
Crypto industry leaders have repeatedly argued that banks, encouraged by regulators, systematically restricted access to basic financial services. This narrative gained traction under the label “Operation Choke Point 2.0,” drawing comparisons to past regulatory crackdowns closely attributed to former SEC Chair Gary Gensler.
Banks and regulators pushed back, arguing they made decisions based on risk management, compliance, and reputational concerns rather than ideology.
Those tensions resurfaced on Wednesday, when the OCC released preliminary findings from its review of alleged debanking by the largest US banks.
Debanking Was Real, But Limited
In its December 10 review, the OCC concluded that between 2020 and 2023, the nation’s largest banks engaged in debanking practices.
The agency said banks made inappropriate distinctions among lawful businesses, restricting access or imposing heightened reviews driven by reputational concerns.
The OCC is committed to ending efforts that weaponize finance. Read the OCC’s preliminary findings from its supervisory review of debanking activities at the nine largest national banks. https://t.co/pFMi7Rt8khpic.twitter.com/XWfbCheo91
Digital asset activities were explicitly listed among the affected sectors, alongside firearms, energy, adult entertainment, and payday lending.
However, the OCC’s framing is narrower than the industry’s “Operation Choke Point 2.0” rhetoric. The report focuses on bank-created policies and escalation processes, not a centralized directive ordering banks to cut off crypto firms.
That distinction matters for how this newly unfolding debate is interpreted.
Much of the period under review overlaps with the 2022–2023 crypto downturn and its spillover into banking.
The review was released under Gould, who was appointed earlier this year by President Donald Trump. Gould framed the findings as part of an effort to limit “weaponized” finance and reputational-risk-driven exclusions.
Against that backdrop, the OCC’s conditional approvals for five crypto-oriented trust banks complicate claims of ongoing systemic exclusion.
Even as banks and trade groups warn of regulatory asymmetry, the approvals indicate that federal access is expanding for compliance-focused trust bank models.
Ripple has received conditional approval for a federal banking license, which could potentially enable its operation under US banking regulations. If granted, the license would allow Ripple to operate as a federally regulated financial institution under US banking law.
The approval strengthens Ripple’s position in cross-border payments and digital asset settlement infrastructure across regulated financial markets. However, the development may not result in an immediate or substantial impact on XRP’s market price.
OCC Opens Federal Charter Path
The Office of the Comptroller of the Currency (OCC) has opened a pathway for Ripple to charter Ripple National Trust Bank.
To receive full approval, Ripple must still meet specific OCC regulatory and operational requirements before licensing is finalized.
HUGE news! @Ripple just received conditional approval from the @USOCC to charter Ripple National Trust Bank. This is a massive step forward – first for $RLUSD, setting the highest standard for stablecoin compliance with both federal (OCC) & state (NYDFS) oversight.
Even if approved, Ripple would not operate like traditional banks such as Bank of America or JPMorgan Chase. Trust banks are legally restricted from accepting public deposits or offering conventional lending products, such as consumer loans.
Instead, a Ripple National Trust Bank would focus primarily on custody, settlement, and digital asset management services. That distinction matters.
A national trust bank:
Can provide custody, fiduciary, and settlement services
Can hold assets on behalf of clients
Is federally supervised by the OCC
Cannot take retail deposits or issue loans
Does not get FDIC insurance
So Ripple is becoming a regulated financial infrastructure provider.
Despite limitations, the approval represents a meaningful regulatory milestone for the company’s long-term operational strategy. Unlike state money transmitter licenses, which limit operations geographically, a federal charter enables nationwide regulatory coverage.
Such approval may influence broader market sentiment, but its primary significance lies in infrastructure development and long-term institutional adoption, rather than short-term speculative demand for XRP.
CEO Brad Garlinghouse acknowledged the decision publicly, framing it as a response to long-standing resistance from traditional banking industry lobbyists toward crypto-native firms entering federally regulated financial markets.
Sanctioned Russian exchange Garantex is quietly moving funds again, according to an on-chain payout architecture uncovered by blockchain analytics firm Global Ledger.
The forensic evidence confirmed that Russian actors have rebuilt a functioning payout system despite law enforcement efforts.
Researchers have uncovered new Garantex-linked wallets on Bitcoin and Ethereum that, together, hold more than $34 million in cryptocurrency. At least $25 million has already been paid out to former users. These movements confirm that the operation is active despite international pressure to shut it down.
Global Ledger explained that Garantex is operating a payout system designed to conceal the flow of money. The exchange shifts its reserves into mixing services such as Tornado Cash, which scramble the funds to obscure their origin.
Garantex uses Tornado Cash to obscure money movement. Source: Global Ledger.
The money is then routed through a series of cross-chain tools. These facilitate the transfer of assets between networks, including Ethereum, Optimism, and Arbitrum. These transfers eventually end up in aggregation wallets, and from there, the funds are distributed to individual payout wallets.
The investigation also found that most Ethereum reserves remain untouched. More than 88% of the ETH linked to Garantex remains in reserve, indicating that only the initial phase of payouts has commenced.
The findings in the Global Ledger report are situated within a broader transformation within Russia’s financial system.
How Russia Uses A7A5 to Keep Trade Alive
Russia has made a remarkable shift in its approach to digital assets.
President Vladimir Putin has also personally backed a new payment network called A7.
A7 launched a rouble-backed stablecoin named A7A5 at the start of 2025. This token enables the flow of money in and out of the conventional financial system, and according to Chainalysis, it has already supported more than $87 billion in trading activity.
Russian companies utilize A7A5 to convert rubles into USDT. This allows Russian firms to continue making cross-border payments even when banks refuse to process transfers linked to Russia.
While Russia works to build a financial system that no longer depends on Western channels, the Global Ledger findings add a critical new layer by showing that Garantex has not disappeared.
Instead, it has adapted its operations and continues to move money through structures that mirror newer state-backed systems.
Taken together, the evidence shows how states are developing new crypto-based payment systems that circumvent country-specific sanctions and erode traditional forms of external pressure.
Twenty One Capital has made its debut on the New York Stock Exchange (NYSE), entering the public markets with a substantial Bitcoin treasury and a similarly large spotlight.
Its stock slid sharply on day one, raising a clear question for investors and the industry: what comes next for a company built around Bitcoin during a market downturn?
That holding, worth about $3.9 billion, makes Twenty One Capital one of the largest corporate holders of the asset. Jack Mallers, who co-founded the firm, framed the listing as a bid to give Bitcoin a defined place in traditional markets. He argued that investors deserve access to a company built entirely on Bitcoin’s monetary logic.
“Bitcoin is honest money. That’s why people choose it, and that’s why we built Twenty One on top of it,” Mallers said in a press release. “Listing on the NYSE is about giving Bitcoin the place it deserves in global markets and giving investors the best of Bitcoin: its strength as a reserve and the upside of a business built on it.”
Cantor Equity Partners itself comes from a high-profile lineage: it was formed as a public acquisition vehicle backed by Cantor Fitzgerald, the investment firm led by Brandon Lutnick, son of US Commerce Secretary Howard Lutnick. That connection adds another layer of institutional pedigree to XXI’s entry into public markets.
Yet the first trading session was rough, with shares falling more than 24%. The reaction indicates caution, with investors likely wanting to see how XXI plans to operate beyond its headline treasury.
DATs Struggle as Bitcoin Slides
Twenty One Capital’s stock exchange debut arrives at a time of renewed pressure in crypto markets.
Bitcoin has fallen by roughly 30% from its October peak, and related equities have weakened in tandem.
Meanwhile, digital asset treasuries (DATs) have been particularly hard-hit, as their valuations often fluctuate in tandem with their reserves. Analysts now stress that DATs must prove they offer more than exposure to Bitcoin. The generous mNAV premiums of earlier quarters have faded, and investors are demanding clearer business models.
1/ I see a lot of bad analysis of DATs, or digital asset treasury companies. Specifically, I see a lot of bad takes on whether they should trade at, above, or below the value of the assets they hold (their so-called “mNAV”).
Against this backdrop, XXI faces a challenging environment for a new listing. It must demonstrate its ability to navigate volatility and build operations that can withstand Bitcoin’s fluctuations.
XXI has stated that it plans to develop Bitcoin-based lending tools and capital markets products.
It also aims to create educational and media initiatives to promote broader Bitcoin adoption.
These remain early-stage intentions rather than launched business lines, reflecting the company’s ambition to build a broader ecosystem rather than remain a static treasury.
Whether investors will welcome that approach remains uncertain.
Some see XXI as a future industry heavyweight, backed by deep institutional networks. Others note the weak crypto market and broader investor caution toward merger-driven listings.
The debut is a milestone, but the next phase will depend on proven results rather than vision.
Last month marked the weakest period for NFT sales in 2025, with the market cap shedding hundreds of millions of dollars.
The latest figures reinforce the ongoing decline in demand for these assets, which once surged to record highs before entering a prolonged reversal after the 2022 crypto winter.
NFT Sales Sink to New Lows
November’s slump was steep. Total non-fungible token (NFT) sales fell to $320 million, nearly halving from October’s $629 million, according to CryptoSlam. That places monthly activity back near September’s $312 million, erasing what little momentum the sector had regained earlier in the fall.
According to CoinMarketCap, the weakness has already carried into December, where the first seven days generated just $62 million in sales, marking the slowest weekly performance of the year.
NFTs are soo downbad right now.
Market cap dropped from $6.6B to $3.5B and volume is down about 65 percent.
OpenSea’s most hyped token even got pushed to Q1 2026.
Most holders aren’t down because of price. They’re down because nobody is buying.
The broader valuation picture reflects the same downward pressure. CoinGecko data shows the market cap of NFT marketplaces has fallen to $253 million, its lowest level on record, as prices continue to decline across even the most established collections.
This downturn is not an isolated event but the continuation of a broader, years-long contraction that has reshaped the NFT landscape since its explosive rise in the early 2020s.
From Hype Cycle to Hard Reset
NFTs first entered mainstream awareness in 2020, when early art sales and experimental drops attracted niche communities.
By 2021, the market had become a full cultural phenomenon. Trading volumes on platforms like OpenSea soon surged to billions each month.
Collections like CryptoPunks and Bored Ape Yacht Club turned into status symbols. They drew celebrities, global brands, and institutional investors. The momentum lasted into early 2022, when NFT activity hit record highs.
Liquidity dried up. Speculative capital pulled back, and floor prices across major collections fell sharply. Wash trading scandals hurt trust, and oversaturation added pressure. Thousands of low-effort collections competed for limited attention.
Some utility-driven NFTs, such as gaming assets and loyalty tokens, held steady pockets of activity. But legacy profile-picture collections lost relevance. Marketplaces fought for users with aggressive incentives, often boosting volume without creating real profit.
By 2025, the sector had shifted into a quieter role. It now operates as a niche segment within the broader digital asset market.
A Maryland man was sentenced to prison this week for helping IT workers linked to North Korea infiltrate US companies.
This incident fits into a wider pattern in 2025, where insider access and rising crypto theft are becoming key features of North Korea’s cyber strategy.
US Jobs Opened to North Koreans
The Justice Department announced on Thursday the sentencing of Minh Phuong Ngoc Vong, an American citizen convicted of conspiracy to commit wire fraud. Prosecutors proved that Vong used false credentials to secure remote software development jobs for North Korean nationals at 13 American companies.
According to public documents, Vong allowed a foreign operator to use his logins, devices, and identity documents to perform the work remotely. The man, who operated from China, is believed to be from North Korea.
One job created a particular risk when a Virginia technology firm hired Vong for work on a Federal Aviation Administration contract in 2023.
— National Security Division, U.S. Dept of Justice (@DOJNatSec) December 4, 2025
The role required US citizenship and granted him a government-issued personal identity verification card. Vong installed remote-access tools on the company laptop. The move allowed the North Korean man to complete the work from abroad inconspicuously.
The company paid Vong more than $28,000, and he sent part of those earnings to his overseas partners. Court filings show he collected over $970,000 across all companies, with most of the work performed by North Korean-linked operatives. Several firms also subcontracted with him for US government agencies, further expanding the exposure.
Vong was sentenced to 15 months in federal prison, followed by three years of supervised release.
In October, blockchain analytics firm Elliptic reported that North Korea-linked hackers had stolen over $2 billion in cryptocurrency in 2025. This figure represents the highest annual total ever recorded.
The overall amount attributed to the regime now surpasses $6 billion. These proceeds are widely believed to support nuclear and missile development.
Most breaches in 2025 began with social engineering rather than technical flaws. Hackers relied on impersonation, phishing, and fabricated support outreach to gain wallet access. The trend highlights a growing focus on human weaknesses over code vulnerabilities.
Taken together, these trends suggest a coordinated approach, with North Korea combining insider infiltration with advanced cryptocurrency theft to expand both its income and operational footprint.
With 2026 on the horizon, uncertainty is mounting over whether the crypto market structure bill will sail through early in the year or become mired in a political fight that pushes its passage further down the calendar.
Key unresolved issues continue to slow momentum, including how the bill should address stablecoin yield, conflict-of-interest language, and the treatment of decentralized finance under federal law.
Path to Senate Vote Uncertain
The CLARITY Act cleared the House in July with broad bipartisan support, marking the strongest move yet toward a federal digital asset framework.
The bill now awaits action in the Senate, where the Banking and Agriculture committees are advancing parallel versions of a market-structure framework. The Senate’s split jurisdiction adds complexity, with the Banking Committee overseeing securities, while the Agriculture Committee handles commodities.
Both committees have now published discussion drafts, but a unified package has yet to emerge. Lawmakers still need to reconcile differences before either committee can send a combined bill to the Senate floor.
However, the restriction is narrowly written. It applies only to direct payments from payment-stablecoin issuers and does not explicitly cover reward programs, third-party yield, or other digital asset structures.
The banks demanded the exclusion for yield-bearing stablecoins in the GENIUS Act. Now they're upset that the language they asked for doesn't screw over stablecoin holders hard enough.
Sorry you guys did a bad job negotiating your regulatory moat. Try lobbying better next time! https://t.co/3BbjUxmZlm
Banking groups argue these gaps could allow workarounds and are urging lawmakers to expand the prohibition in upcoming market structure legislation. They want a broader rule that covers all forms of yield associated with stablecoins.
Several senators appear open to that approach, giving the issue significant weight in negotiations. Any expansion would influence how stablecoins compete with traditional bank deposits, which remains a central concern for the banking lobby.
Meanwhile, lawmakers remain divided over how the broader framework should address potential conflicts of interest.
Concerns Over Political Influence Intensify
The involvement of US President Donald Trump and his family members in crypto-related projects has prompted renewed scrutiny of potential ethical concerns.
Some lawmakers, such as Senator Elizabeth Warren, argue that new conflict-of-interest language is necessary to ensure that political figures and their relatives are prohibited from engaging in activities that could raise questions about their influence over digital asset policy.
Such measures would help insulate the legislation from perceptions of political interference.
However, the proposed language does not appear in the House-passed CLARITY Act, nor was it included in earlier Senate drafts. Its absence has become a point of debate, and the disagreement is contributing to ongoing hesitation.
The market structure bill is designed for centralized intermediaries, including exchanges, brokers, and custodial platforms. Yet the rapid rise of DeFi introduces questions the Senate has not fully resolved.
First Ken Griffin screwed over Constitution DAO
Now he's coming for DeFi, asking the SEC to treat software developers of decentralized protocols like centralized intermediaries
Bet Citadel has been lobbying behind closed doors on this for years
Current drafts primarily focus on custodial activity. However, some traditional financial institutions are advocating for broader definitions that would classify developers, validators, and other non-custodial actors as regulated intermediaries.
Such an approach would significantly expand federal oversight and reshape the legal environment for open-source development.
Until lawmakers define that boundary, the bill is unlikely to advance. The DeFi question remains one of the key factors shaping when the market structure bill may finally move forward in 2026.
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.
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.
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.
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.
Texas has become the first US state to purchase Bitcoin for its treasury, making a $10 million acquisition as part of a broader strategic initiative. The move comes during a market pullback that some view as a favorable entry point.
This decision positions Texas as an early leader in state-level digital asset adoption and may influence how other states approach cryptocurrency in the future.
Texas Starts With ETF Access
State officials said Texas executed the transaction through BlackRock’s spot Bitcoin ETF as a regulated and practical entry point. The purchase was presented as a step toward integrating Bitcoin into long-term treasury planning and improving diversification.
Texas Blockchain Council President Lee Bratcher later confirmed the move, noting that treasury teams had monitored market conditions closely and executed the purchase on November 20, when Bitcoin briefly dipped to $87,000. Officials added that direct self-custody remains the goal, but the ETF offers a compliant solution while the state builds its custody framework.
TEXAS BOUGHT THE DIP! Texas becomes the FIRST state to purchase Bitcoin with a $10M investment on Nov. 20th at an approximately $87k basis! Congratulations to Comptroller @KHancock4TX and the dedicated investments team at Texas Treasury who have been watching this market… pic.twitter.com/wsMqI9HrPD
The acquisition marks the beginning of a broader reserve strategy focused on developing infrastructure, oversight, and digital asset controls. This initial allocation will help test workflows, risk management, and governance processes before any future expansion.
More broadly, Texas’s move comes as institutional interest in Bitcoin grows, supported by strong ETF inflows and wider participation from major financial firms.
A Symbolic First Step
While $10 million is a small share of state reserves, the symbolic impact is significant. It marks the first instance of a US state treating Bitcoin as a treasury-level asset.
Analysts say this early government involvement could shape how other states approach digital asset exposure. It may spark debates on reserve diversification, tech competitiveness, and long-term fiscal planning.
Polymarket received formal approval from the CFTC to operate in the US with full regulatory oversight, allowing the platform to work with brokerages and offer intermediated access to American users.
The approval brings an on-chain prediction market into the US regulatory system for the first time, opening the door to larger institutions and deeper liquidity.
A New Era After CFTC Approval
Polymarket announced today that the US Commodity Futures Trading Commission (CFTC) approved a revised designation order. The decision enables the platform to offer intermediated access nationwide.
The prediction market can now work with regulated intermediaries and onboard US customers in full compliance. It can also operate a marketplace that meets the standards of federally supervised exchanges.
To reach this stage, the company enhanced its surveillance tools, oversight policies, clearing procedures, and reporting systems to support the transition. These upgrades move Polymarket from a crypto-native platform into a fully regulated exchange operating under CFTC rules.
This approval also marks a broader shift in the regulatory landscape.
Pretty big news for Polymarket: The CFTC amended Polymarket's "order of designation," allowing it to work with futures commission merchants to list contracts. Before, Polymarket could only offer direct access.
For years, prediction markets operated in a legal gray area. US regulators often took a cautious or even hostile stance toward event-based trading. The CFTC’s decision signals a more open approach.
The move also unlocks institutional participation. Brokers, futures commission merchants (FCMs), trading firms, and liquidity providers can now access Polymarket’s markets legally. This greatly expands the platform’s potential scale and liquidity.
The ruling also positions prediction markets as a legitimate financial instrument. They can serve as tools for forecasting elections, geopolitics, policy changes, sports outcomes, and macro events. They may even emerge as a new asset class.
The news comes at a moment when Polymarket is performing strongly and securing a clear position in an increasingly competitive industry.
Polymarket’s Momentum Builds
Polymarket’s recent growth has been driven by rising user activity, strong institutional backing, and speculation about what the prediction market will do next.
Last week, BeInCrypto reported that the prediction market is now seeking new capital at a $12 billion valuation, representing a sharp increase from its previous funding round. The move has also fueled speculation about a potential initial public offering (IPO), with many drawing parallels to Kraken’s recent fundraising efforts and confidential filing.
Institutional support has played a significant role in Polymarket’s rise. Intercontinental Exchange (ICE) invested $2 billion in the platform, giving prediction markets serious credibility. Meanwhile, user engagement has climbed just as quickly.
Polymarket now has more than 1.3 million traders and over $18 billion in total volume. Daily active users jumped from 20,000 to almost 58,000. Much of the excitement stems from the confirmation of the POLY token and an airdrop that could rank among the largest in cryptocurrency history.
With regulatory clarity, institutional backing, and rapid user growth converging at once, Polymarket now appears poised to enter its most ambitious phase yet.
Since taking office, US President Donald Trump and his family have dived headfirst into a wave of crypto-focused business ventures, briefly seeing their wealth surge on the back of these deals. But that momentum has faded.
Today, both the Trump family’s gains —and those of their most devoted supporters— have been wiped out as market volatility intensifies.
Family Crypto Empire Faces Reversal
Trump’s crypto ventures have become recognizable fixtures across the industry.
At this point, there’s virtually no corner of the crypto industry the presidential family hasn’t tapped into.
At their peak, the profits from these ventures were striking. Estimates differ, but an August investigation by watchdog group Accountable.US found that roughly 73% of Trump’s wealth was tied to crypto-related deals.
Everyone's worried about how inflationary Trump's new economic plan might be…
But it may not matter much to DJT.
His empire isn't built on golf courses and licensing deals anymore — it's being rebuilt on crypto.
That figure represents a sharp rise from April, when the NGO State Democracy Defenders Fund estimated that 37% of his wealth came from crypto.
That picture, however, has changed dramatically. With markets now slumping and indicators flashing red, the Trump family’s crypto gains have taken a hit.
Family Tokens and Stocks Plunge
The Trump family’s crypto portfolio has been hit across nearly every venture they touched.
Their Trump-branded memecoin reached its latest peak on November 10 at $9.49 but has since plummeted to $6.20 — a nearly 35% drop in just a few days. The family’s exact stake is unclear, but estimates suggest the drop erased about $117 million from their holdings.
Trump Media, the parent company of Trump’s social media platform Truth Social, has also suffered losses, particularly after it decided to invest $2 million worth of Bitcoin in July.
Bloomberg estimates that the value of the president’s stake in the company has dropped by roughly $800 million since September. Trump remains its largest shareholder, with his holdings placed in a trust managed by his eldest son, Donald Trump Jr.
Meanwhile, WLFI has seen its token price decline from $0.26 in early September to roughly $0.15. The decline cut Trump’s locked token value almost in half, dropping from nearly $6 billion to around $3.15 billion.
WLFI price chart over the past 90 days. Source: CoinGecko.
Even their mining venture, American Bitcoin Corp., hasn’t escaped the rout. The company was formed shortly after Trump’s inauguration in partnership with Hut 8 Corp., which took a majority stake.
Eric Trump ended up with about 7.5% of the firm, while Donald Trump Jr. secured a smaller, undisclosed portion.
The venture initially soared, valuing Eric’s stake at roughly $630 million, but as the market turned, shares fell by more than half, wiping out about $300 million from his holdings.
Market Meltdown Deepens Crypto Losses
The Trump family’s shrinking crypto fortune is just one piece of a wider market collapse that has erased more than $1 trillion in digital asset value.
The sector is facing one of its sharpest downturns in months. Major tokens are experiencing a decline, leveraged positions are unwinding, and liquidation waves are rippling through derivatives markets.
Bitcoin’s selloff has dragged altcoins and crypto-linked equities lower, highlighting how quickly momentum can reverse in a notoriously volatile industry.
Retail investors have borne much of the pain. Many piled into tokens, mining stocks, or high-profile branded projects near their highs, only to see prices crater within weeks.
A multisignature wallet tied to the controversial LIBRA meme coin has moved $9 million after nine months of complete inactivity.
The sudden activity occurred just as the US justice system was considering freezing related funds to protect the ongoing investigation, which is being overseen in the US Southern District Court.
Inactive LIBRA Wallet Awakens
The wallet, labeled “Milei” on several blockchain monitoring platforms, sent 69,000 SOL—worth roughly $9 million—through a series of opaque addresses.
Blockchain analyst Fernando Molina, who detected the activity, said the path suggests an attempt to obscure the destination of the funds. The wallet had remained untouched since February 15, one day after LIBRA collapsed following its chaotic launch.
Cuando faltaban enviar a penas 800 mil dólares de los 9 M, la jueza Rochon cita a Hayden Davis y los damnificados en USA a una audiencia para hoy a las 6pm. Los movimientos continuan mientras tanto
The move represents the first known outflow from any multisig wallet linked to the project. Such wallets require at least two signatures, indicating coordinated action.
The timing also coincides with an emergency request filed in Manhattan, where plaintiffs in a class-action lawsuit seek to halt further fund movements before more assets disappear. The request is now before Judge Jennifer Rochon, who is presiding over the case.
Threat of Lost Evidence
Legal counsel from the Burwick Law firm, representing plaintiffs, told the court that they believe the defendants may soon convert their remaining assets into privacy coins that can erase all transaction history.
Court documents warn that critical funds linked to the LIBRA launch could be lost if the conversion occurs. The filing claims the defendants are only steps from destroying evidence.
The plaintiff’s lawyers argued that the concerns were not hypothetical, according to court documents accessed by BeInCrypto.
They pointed to two specific incidents on November 16 and November 18. These events showed that the defendants had already begun using anonymization tools designed to erase the blockchain trail.
Plaintiffs Argue Funds at Risk
According to the legal filing, the first event, held on November 16, served as a clear test run. A wallet linked to the LIBRA team routed funds through the NEAR Intents protocol and then into a shielded Zcash address.
Once inside Zcash’s privacy pool, the money became mathematically untraceable. Plaintiffs described this as a deliberate proof of concept showing that the defendants could make LIBRA proceeds disappear beyond recovery.
Two days later, the activity escalated significantly. On November 18, defendants began converting more than $60 million in USDC tied to LIBRA into roughly 456,000 SOL.
The funds were then consolidated into two newly created “positioning” wallets—a common step used before assets are pushed through privacy systems or cross-chain anonymization routes.
The movement, according to the filing, strongly suggested preparation for a full-scale laundering operation similar to the one conducted on November 16.
The escalating activity has now prompted the court to act urgently. A hearing on the plaintiffs’ request for injunctive relief is scheduled for this Tuesday at 4 p.m. EST.
For investigators and plaintiffs, the coming hearing could determine whether the remaining LIBRA funds stay traceable or disappear for good.
The new location-visibility feature on X has sparked an immediate wave of racism, harassment, and doxxing across Crypto Twitter.
The update has also raised serious safety concerns, with experts warning it could make crypto-targeted crime and kidnappings easier.
Twitter’s New Location Tool
X now has a new “About This Account” feature that displays the country or region linked to every user profile, marking one of the platform’s most significant shifts toward identity transparency.
The update appears automatically on profile pages and cannot be disabled, giving audiences a clearer sense of where accounts are based. According to the company, the feature helps combat misinformation, reduce bot activity, and provide more context around conversations.
“This is an important first step to securing the integrity of the global town square. We plan to provide many more ways for users to verify the authenticity of the content they see on X,” said Nikita Bier, Head of Product at X.
The move follows months of internal discussion about how to make interactions on X more accountable and less anonymous.
However, it has also fueled a rise in racist behavior on the platform and intensified fears about security risks, particularly in crypto circles.
Racism Spikes Post-Update
Many users say the feature has already triggered a wave of hostility across the platform.
Shortly after the rollout, Crypto Twitter timelines filled with screenshots of xenophobic comments, mocking posts, and targeted harassment aimed at users whose newly revealed locations made them easy targets.
Bullying Indians, Pakistanis, Nigerians, or anyone else because of where they’re from doesn’t make you funny
It just shows what kind of scumbag you are
CT has always been about merit, not nationality or skin color
If you’re still making these type of jokes, you’re not funny.…
Different accounts have since reported being singled out for their nationality or region, turning routine discussions into flashpoints for racial slurs and regional prejudice.
The shift has exposed long-standing cultural tensions within the crypto community, where anonymity has often protected users from personal attacks tied to identity.
Security concerns escalated just as quickly.
Kidnapping Fears Emerge
Prominent crypto figures have warned that disclosing even regional location data poses real-world risks for anyone discussing or holding crypto.
🚨WARNING🚨
X is now doxxing everybody’s country by default. Best you can do is change to region.
Given the security risks in crypto, especially with all the recent kidnappings, I think this is a terrible move.
Weakening that layer can open new paths for criminals. Users argue that the feature, despite its transparency goals, may expose high-value individuals to danger. They fear it could help bad actors track potential targets by region.
Bitcoin has hit liquidation levels last seen during the FTX collapse, but this time the shock came from a market overloaded with unprecedented leverage rather than fraud or exchange failure.
According to some analysts, leverage flushes like this have historically created strong medium-term opportunities, even as broader risks and late-cycle uncertainties remain.
The Spark Behind the Liquidation Wave
Bitcoin has just equalled FTX-era liquidation levels, but this time the cause isn’t an exchange implosion or hidden fraud. Instead, the shock came from a market overloaded with leverage—a buildup that grew quietly for months before breaking open in a matter of hours.
“The market has never carried this much leverage. In 2021, open interest peaked at $16.5 billion. In this cycle, it reached $47.5 billion– three times more. This [illustrates] how aggressive investors have become during this cycle,” Darkfost told BeInCrypto.
Liquidations occur when traders who borrow heavily are unable to maintain their positions once prices move against them. When leverage is stretched across the entire market, even a modest drop can trigger a wave of automated selling.
🚨 BTC LONG LIQUIDATION HAVE REACHED LEVELS NOT SEEN SINCE THE FTX CRASH.
Despite Bitcoin’s correction, many investors tried to time the bottom and go long on BTC.⁰On top of that, a large number of positions had built up over time, contributing to a level of long liquidations… pic.twitter.com/Iy5NMo58sI
That is precisely what unfolded this week. The tens of billions of dollars in open interest had accumulated across exchanges, leaving the market vulnerable to any meaningful downturn.
Once Bitcoin slipped, the pressure broke. Forced liquidations cascaded through the system, each one accelerating the next.
“This all-time high in open interest occurred just before the events of October 10 and the series of major liquidations that followed, which increased the short-term volatility,” Darkfost added.
The scale and speed of the wipeout immediately drew comparisons to the FTX collapse.
Fresh Strength After the Shake-Out
Liquidation totals now resemble those seen in November 2022, with more than 9,000 to 10,000 BTC wiped out in a single day. But that’s where the similarity ends.
In 2022, the market unraveled because of fraud and the failure of a major exchange. This time, the crash came from excessive leverage and normal market mechanics. That difference is crucial.
The current shake-out does not signal structural failure. Instead, it reflects over-confident positioning and a crowded derivatives market. The unwinding was violent because the leverage was extreme. Yet once that excess leverage washed out, the picture begins to shift.
“Historically, these deleveraging phases have often offered solid medium-term opportunities, just like after the FTX crash… which marked the end of the bear market,” Darkfost noted.
Additionally, funding rates turned negative, a sign that traders backed away from overly bullish leveraged bets. Open interest also eased and didn’t rebound immediately, reducing the risk of another rapid wave of forced selling.
At the same time, spot trading spiked—one of the strongest days of the year—indicating that real buyers, not borrowed money, were stepping in.
“A market rebuilding itself on spot after a leverage flush is a sign that a bottom may be forming. This is exactly the kind of signal you want to see after such a liquidation event,” Darkfost added.
This is where the window of opportunity opens.
Caution Amid a Cleaner Market
When large amounts of leverage are flushed out of the system, the market often becomes more stable.
But Darkfost argued that before viewing this moment as an opportunity, it’s important to understand why these events happen so violently in the first place. Episodes like this highlight a persistent problem in the crypto industry: many traders still lack a basic understanding of risk.
“People need real education when it comes to risk management. Crypto remains lightly regulated and extremely accessible, and it is possible to use extreme leverage with huge amounts of capital,” he said, adding, “[If] an investor doesn’t perfectly know how to manage risk, their net worth can suffer heavy losses. The higher the leverage, the shorter the lifespan of the trade.”
With that warning in place, Darkfost also noted that the broader environment is not entirely straightforward.
“Given the current context, it is worth adding some nuance because we have reached the end of the cycle for those who still believe in that periodicity. The macro picture is not entirely clear yet and other concerns are emerging, including the possibility that MSCI could identify treasury heavy companies like MSTR.”
Only after acknowledging these risks does the larger historical pattern come into focus. Once excessive leverage is cleared, markets often return to a healthier footing.
After the FTX collapse, a similar reset marked the end of the bear market and the start of a months-long recovery. A comparable dynamic may be taking shape again—although this time with more nuance and more variables at play.
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