Arthur Hayes has moved 508.647 ETH, worth roughly $1.5 million, to Galaxy Digital, sparking fresh speculation that the crypto veteran may be trimming exposure.

The move is surprising because recently Hayes delivered one of his strongest bullish theses on Ethereum.

Arthur Hayes Ethereum Sell Speculation

On-chain data shows the transfer originated from a wallet linked to Hayes and landed at a Galaxy Digital deposit address. 

Transfers to institutional desks do not always signal an immediate sale. But such movements are commonly associated with liquidity provisioning or over-the-counter execution.

The transaction comes as Ethereum trades just below the psychologically important $3,000 level, following a volatile December marked by ETF outflows and derivatives repositioning.

Despite the move, Hayes still controls more than 4,500 ETH.

So, any selling would represent portfolio management rather than a full exit.

The timing is notable. Only days earlier, Hayes laid out a detailed case for Ethereum’s institutional future, arguing that large financial players have finally accepted the limits of private blockchains.

“You can’t have a private blockchain. You must have a public blockchain for security and real usage.”

Hayes framed stablecoins as the catalyst that makes Ethereum legible to traditional finance. He predicted that banks would increasingly build Web3 infrastructure on Ethereum rather than bespoke ledgers.

“You’re going to see large banks start doing crypto and Web3 using a public blockchain. I think the public blockchain will be Ethereum.”

He acknowledged that privacy remains a sticking point for institutional adoption but argued that the issue will be addressed at the application or Layer-2 level, with Ethereum continuing to anchor security.

“They might build an L2 that has some sort of privacy features… but the substrate, the security layer, is still Ethereum.”

However, market conditions remain mixed. Ethereum has struggled to regain sustained momentum above $3,000 as spot ETH ETFs recorded notable outflows in mid-December, while implied volatility in derivatives markets has compressed. This reflects caution rather than panic. 

At the protocol level, activity continues to migrate toward rollups, keeping transaction costs low but limiting fee capture on Ethereum’s base layer.

Hayes also struck a pragmatic tone on valuation expectations, offering a long-term target rather than a near-term prediction.

“If ETH gets to $20,000, that’s about 50 Ethereum to make a million… by the end of the cycle, by the next presidential election.”

For now, Hayes’ on-chain activity suggests tactical positioning, not a reversal of conviction. His thesis remains intact: Ethereum wins if stablecoins and institutional on-chain finance scale. 

The market, however, may still be waiting for that narrative to fully materialize.

The post Did Arthur Hayes Just Sell $1.5 Million in Ethereum? appeared first on BeInCrypto.

Over $3.16 billion worth of Bitcoin and Ethereum options are set to expire on Friday at 08:00 UTC on Deribit, marking the final major derivatives settlement before Christmas.

With liquidity thinning out as the holiday period approaches and positioning tightly clustered around key price levels, traders appear cautious, waiting for a clearer catalyst before committing to a direction.

What to Expect as Nearly $3 Billion Bitcoin Options Expire

Bitcoin accounts for the bulk of the expiry, with roughly $2.69 billion in notional value rolling off. At the time of writing, BTC was trading at $87,194, representing a 0.54% increase over the past 24 hours.

The max pain level for today’s expiring Bitcoin options sits at $88,000, placing the spot price just below the strike. This is where the greatest number of options expire worthless.

Meanwhile, open interest data suggests a relatively balanced but slightly defensive stance. Bitcoin call open interest stands at 17,506 contracts, compared with 13,309 puts, resulting in a total open interest of 30,815 contracts and a put-to-call ratio of 0.76.

While calls still dominate numerically, the concentration of positioning near $88,000 points to limited upside momentum unless the spot decisively breaks higher. Deribit analysts highlighted this dynamic in a market update.

“BTC open interest is concentrated around 88K, with slightly heavier put positioning, pointing to a relatively contained expiry unless spot breaks range,” they wrote.  

The commentary reinforces the view that Bitcoin could remain range-bound through settlement, especially amid pre-holiday caution.

Over $470 Million Ethereum Options Expire Today: What Investors Should Know

Ethereum presents a different setup. Approximately $473 million in ETH options are expiring, with the asset trading at $2,928, representing a 3.37% increase in the last 24 hours. ETH’s max pain level is higher, at $3,100, leaving spot price meaningfully below the key strike.

Ethereum’s open interest profile is more evenly split, with 78,524 call contracts versus 83,547 puts. This results in a put-to-call ratio of 1.06 and a total open interest of 162,071 contracts.

Unlike Bitcoin, ETH positioning is spread across a wider range of strikes, indicating greater uncertainty about the near-term direction.

“ETH positioning is more distributed across strikes, with notable upside interest above 3.4K, keeping larger moves in play if volatility reaccelerates,” Deribit analysts indicated.

The analysts added that positioning suggests patience into settlement, which happens at 08:00 UTC today, with traders waiting for a clearer catalyst rather than forcing direction.

Beyond today’s options expiry, attention is already shifting to December 26 and early 2026 positioning.

“December 26 85k Put OI now ~15k ($1.25bn notional) on Deribit, and bears+FUD currently in control with ATM 86k,” Deribit Insights noted.

At the same time, upside bets appear less aggressive in the near term, with analysts observing that “the Dec26 100k+ $1.75bn Call condor feels a distant punt now.”

However, longer-dated flows tell a more constructive story, with recent flows continuing to show upside bias into 2026. According to the analysts, this suggests that while short-term sentiment remains cautious, longer-horizon traders are still positioning for a renewed bullish phase.

As the final options expiry before Christmas approaches, both Bitcoin and Ethereum appear caught between near-term restraint and longer-term optimism, leaving their next decisive move unresolved.

Traders and investors may experience some volatility, which the BOJ’s interest rate decision could exacerbate. However, markets tend to stabilize as traders adjust to new market conditions.

The post $3.16 Billion Crypto Options Expiry Puts Bitcoin and Ethereum’s Next Move in Question appeared first on BeInCrypto.

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 BitMine’s bold Ethereum strategy is back in focus with market pressure building and investor nerves fraying. Losses are mounting, the stock is sliding, and yet influential buyers are quietly stepping in, setting up a familiar crypto standoff between conviction and caution.

Crypto News of the Day: Losses Mount at BitMine, Yet Tom Lee and Ark Double Down on Ethereum

BitMine’s aggressive Ethereum treasury strategy is coming under renewed scrutiny as prolonged unrealized losses weigh on investor sentiment and its stock continues to slide.

Shares of BitMine (BMNR), widely described as the world’s largest Ethereum treasury company, have fallen sharply in recent sessions. The stock closed Wednesday at $29.32, down 6.59% on the day and roughly 24% over the past five days,

The reflects market unease around both broader market weakness and BitMine’s mounting unrealized losses on ETH holdings.

Yet even as concerns grow around downside exposure, some of crypto’s most influential bulls are doubling down. This highlights a widening divide over Ethereum’s role in institutional treasury strategies.

Despite the drawdown, BitMine Chairman Tom Lee appears unfazed. On-chain data flagged by Arkham Intelligence indicates that Lee has continued to accumulate Ethereum at scale.

“Tom Lee just bought another $140 million ETH. Two fresh wallets just received $140.58 million ETH from FalconX. Their acquisition behavior matches BitMine’s prior purchase patterns. Tom Lee continues to buy the dip,” wrote Arkham.

The activity reinforces BitMine’s long-standing thesis that Ethereum remains structurally undervalued and is positioned to benefit from regulatory clarity, institutional adoption, and the expansion of on-chain use cases. This holds despite near-term price action telling a different story.

Cathie Wood’s Ark Invest is also signaling conviction. According to trade filings, Ark purchased $10.56 million worth of BitMine shares on Wednesday across three of its exchange-traded funds.

🚨ARK BUYS MORE CRYPTO STOCKS!

Ark Invest bought $10.56M of BitMine, $5.9M of Coinbase, and $8.85M of Bullish on Wednesday.

Cathie Wood says a “real break” in inflation is coming in 2026. pic.twitter.com/lW8AWfuISC

— Coin Bureau (@coinbureau) December 18, 2025

The buy followed an additional $17 million purchase earlier in the week, bringing Ark’s recent accumulation to nearly $28 million.

Ark Expands Crypto Equity Exposure as Treasury Strategies Split

Ark’s buying spree extended beyond BitMine. The firm also added $5.9 million in Coinbase shares and $8.85 million worth of Bullish, leaning into crypto equities that have broadly been trending lower. Coinbase fell 3.33% on Wednesday to $244.19, while Bullish slipped 1.89% to $42.15.

The moves reflect Wood’s broader macro-outlook. The Ark Invest CEO, Cathie Wood, has repeatedly argued that easing inflation and improving liquidity conditions could set the stage for a renewed crypto rally.

BitMine’s leadership mirrors that optimism. The company has continued purchasing ether weekly during the downturn, with Lee previously stating that regulatory and legislative shifts in Washington, combined with rising institutional engagement, mean “the best days for crypto” are still ahead.

Nonetheless, not everyone shares that view. Analyst Samson Mow has taken the opposite approach, opting for a clean break from Ethereum exposure.

“I’ve decided to liquidate all BitMine Ethereum holdings and pivot to a Bitcoin-only treasury strategy,” wrote Mow.

Mow’s decision highlights a growing philosophical split within crypto treasuries: whether diversification into Ethereum represents strategic foresight or unnecessary risk.

For BitMine, that debate is no longer theoretical, and as unrealized losses persist, Lee and Ark’s conviction may not be rewarded soon, unless tides turn. In the same way, Ethereum’s volatility continues to test the limits of institutional patience.

Chart of the Day

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

• Bitfinex Bitcoin whale long positions surge 36%: What does it mean?
• Bitcoin’s 5% whiplash was no accident — Charts reveal the full story.
• Peter Brandt turns bearish on XRP price despite Ripple’s push for multichain expansion.
• The 11th crypto prediction from Bitwise may not survive—James Seyffart warns.  
• Japan’s Bond yields hit 1.98%: BOJ rate shift impacts gold, silver, and Bitcoin.

Crypto Equities Pre-Market Overview

Company	At the Close of December 17	Pre-Market Overview
Strategy (MSTR)	$160.38	$162.80 (+1.51%)
Coinbase (COIN)	$244.19	$250.37 (+2.53%)
Galaxy Digital Holdings (GLXY)	$22.81	$23.11 (+1.31%)
MARA Holdings (MARA)	$9.93	$10.03 (+1.01%)
Riot Platforms (RIOT)	$12.96	$13.07 (+0.85%)
Core Scientific (CORZ)	$13.57	$14.00 (+3.17%)

The post Ethereum Dip Pressures BitMine, but Tom Lee and Ark Keep Buying | US Crypto News appeared first on BeInCrypto.

Ethereum price action is sending mixed signals. After correcting over 3% in a day, ETH is flashing early rebound signs, but downside risk has not cleared yet. The chart structure, momentum data, and on-chain cost levels all point to a narrow decision zone.

Right now, Ethereum is stuck between a possible bounce and a deeper breakdown. And the gap between those two outcomes is smaller than it looks. What’s worth noting is that the breakdown zone looms closer!

Rebound Signal Sits Inside a Tight Triangle

Ethereum is trading inside a narrowing triangle, a structure that reflects growing buyer-seller indecision. Price has compressed toward the lower trendline, often a zone where selling pressure starts to fade.

Between December 1 and December 17, ETH printed a higher low on price. At the same time, the RSI (Relative Strength Index), a momentum measuring tool, made a lower low. This creates hidden bullish divergence, meaning selling momentum is weakening.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

This setup does not guarantee a rally. But it does suggest downside pressure may be exhausting as Ethereum approaches structural support, the lower triangle trendline. In simple terms, sellers are losing strength, but buyers have not taken control yet.

That makes the next move highly sensitive to key levels.

Cost Basis Data Shows Where Ethereum Price Rebound Could Stall

On-chain cost basis data helps explain why upside may remain capped.

The strongest near-term resistance sits between $3,154 and $3,179, where roughly 2.8 million ETH were accumulated. This is a heavy supply zone. When price revisits this range, many holders reach break-even and tend to sell.

This aligns closely with the chart resistance at $3,149, which marks an 11% upside from current levels. Even if the Ethereum price rebounds, this zone is likely to attract selling unless the price closes cleanly above it. That is why any bounce without a daily close above this area would still be considered corrective, not trend-changing.

The downside picture is more fragile.

The most important support cluster sits between $2,801 and $2,823. This range has acted as a key demand zone. A clean daily close below $2,801 (which also shows up on the price chart) would be a warning signal.

That move would represent barely a 1% downside break, but it could open the door toward $2,617, the next major support level on the chart.

This is what makes Ethereum’s current position dangerous. Upside could stall near 11%, but downside risk begins with just a 1% failure.

The post Ethereum Price Nears Possible Breakdown — Yet A Bounce Hope Emerges appeared first on BeInCrypto.

The US crypto ETF (exchange-traded fund) market is approaching a tipping point. Bitwise Asset Management’s 2026 forecast anticipates the launch of more than 100 new crypto-linked ETFs, driven by the SEC’s streamlined listing standards effective from October 2025.

While the outlook projects new all-time highs for Bitcoin, Ethereum, and Solana, Bloomberg ETF analyst James Seyffart warns that a significant shakeout may be inevitable as the sector becomes overcrowded.

Bitwise Shares 11 Crypto Predictions for 2026

Bitwise has made 10 projects for 2026, spanning crypto and ETF markets that investors will track closely. According to the crypto index fund manager:

• Bitcoin, Ethereum, and Solana will set new all-time highs
• Bitcoin will break the four-year cycle and set new all-time highs
• Bitcoin will be less volatile than Nvidia.
• ETFs will purchase more than 100% of the new supply of Bitcoin, Ethereum, and Solana as institutional demand accelerates.
• Crypto equities will outperform tech equities.
• Polymarket open interest will set a new all-time high, surpassing 2024 election levels.
• Stablecoins will be blamed for destabilizing an emerging market currency.
• Onchain vaults will double in AUM.
• Ethereum and Solana will set new all-time highs (if the CLARITY Act passes).
• Half of Ivy League endowments will invest in crypto.
• More than 100 crypto-linked ETFs will launch in the US.
• Bitcoin’s correlation to stocks will fall.

A Wave of ETF Liquidations Could Occur in 2026, James Seyffart

The eleventh prediction turned heads, becoming of particular concern for analysts. The surge of anticipated crypto-linked ETF launches follows a major regulatory shift.

In September 2025, the SEC introduced generic listing standards for commodity-based trust shares, including crypto assets.

“[Several leading exchanges] filed with the SEC proposed rule changes to adopt generic listing standards for Commodity-Based Trust Shares. Each of the foregoing proposed rule changes… was subject to notice and comment. This order approves the Proposals on an accelerated basis,” the SEC’s filing claimed.

This change allows ETFs to list without individualized review, reducing delays and uncertainty.

Bitwise expects this regulatory clarity to drive institutional adoption and fresh inflows into crypto ETFs in 2026.

2026 PREDICTION: More than 100 crypto-linked ETFs will launch in the U.S.⁰⁰In October 2025, the SEC published generic listing standards, allowing ETF issuers to launch crypto ETFs under a general set of rules. A clearer regulatory roadmap in 2026 is why we see the stage being… pic.twitter.com/rQbcWe6JE4

— Bitwise (@BitwiseInvest) December 17, 2025

“I’m in 100% agreement with Bitwise here,” Seyffart indicated. “I also think we’re going to see a lot of liquidations in crypto ETP products. Might happen at the tail end of 2026, but likely by the end of 2027. Issuers are throwing A LOT of products at the wall.”

Bitcoin ETF Dominance and Altcoin Saturation

Bloomberg data shows 90 existing crypto ETPs managing $153 billion, with 125 filings pending. Bitcoin leads with $125 billion across 60 products, while Ethereum follows at $22 billion in 25 ETFs.

Altcoins like XRP and Solana remain niche, with 11–13 products each and $1.5–$1.6 billion in assets, signaling rising saturation risks.

With the market poised to be flooded, analysts anticipate direct competition for investor capital. However, historical trends suggest caution, with roughly 40% of ETFs launched since 2010 eventually closing, often due to insufficient assets or trading volume.

The Coming Crypto ETF Shakeout: Winners, Losers, and the Rise of ‘Zombie’ Assets

Seyffart’s warning reflects a broader concern that fast expansion often precedes consolidation. Crypto ETFs that fail to attract sufficient AUM, differentiate their strategies, or establish strong distribution networks may face early closure.

Products offering specialized exposure strategies, income features, or tailored risk profiles could establish lasting positions.

Chris Matta, CEO of Liquid Collective, echoes this concern in the context of “zombie” projects, describing crypto assets with market caps of $1 billion or more but minimal development.

“Maybe the failure to sustain an ETF in trad markets will be a stronger signal and will result in larger performance dispersion between active and dead crypto assets,” Matta said.

Therefore, investors entering the ETF space will need to be highly selective. Trading liquidity, tracking accuracy, fee structures, and issuer credibility will be crucial in distinguishing sustainable products from those that are likely to fail.

Meanwhile, Bitwise’s bullish predictions suggest that leading ETFs tied to major assets may continue to benefit from sustained institutional inflows.

The expected wave of liquidations by late 2027 will likely reshape the sector, consolidating capital among the strongest products.

While disruptive, the process may ultimately strengthen the US crypto ETF market by:

• Removing weak offerings,
• Clarifying choices for investors, and
• Highlighting differentiated strategies.

The question remains: in a crowded ETF sector, which products will survive and which will join the growing ranks of crypto’s forgotten “zombie” assets?

The post The 11th Crypto Prediction from Bitwise May Not Survive—James Seyffart Warns appeared first on BeInCrypto.

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, because Wall Street has just sent another signal that crypto’s future is becoming increasingly institutional. As JPMorgan moves a core financial product on-chain, market watchers are wondering whether this is merely experimentation or a deeper shift toward Ethereum as an economic infrastructure.

Crypto News of the Day: JPMorgan Takes Money Markets On-Chain with Ethereum-Powered Fund

JPMorgan Chase has taken another decisive step into blockchain-based finance, launching its first tokenized money market fund on the Ethereum network.

According to reporting by WSJ, the banking giant’s $4 trillion asset-management arm has rolled out the My OnChain Net Yield Fund, or MONY. It is a private money market fund deployed on Ethereum and supported by JPMorgan’s tokenization platform, Kinexys Digital Assets.

The bank will seed the fund with $100 million of its own capital before opening it to outside investors, signaling strong internal conviction in tokenized financial products.

JPMORGAN STEPS FURTHER INTO CRYPTO WITH TOKENIZED MONEY FUND

The banking giant’s $4 trillion asset-management arm is rolling out its first tokenized money-market fund on the Ethereum blockchain. JPMorgan will seed the fund with $100 million of its own capital, and then open it… pic.twitter.com/TTlS5E1MyV

— Evan (@StockMKTNewz) December 15, 2025

MONY is structured for institutional and high-net-worth participation only. It is open to qualified investors, including individuals with at least $5 million in investable assets and institutions with a minimum of $25 million, as well as a $1 million investment minimum.

Investors receive digital tokens representing their fund interests, bringing traditional money-market exposure onto blockchain rails while preserving familiar yield dynamics.

According to the report, JPMorgan executives attribute client demand as the driving force behind the launch.

“There is a massive amount of interest from clients around tokenization,” read an excerpt in the report, citing John Donohue, head of global liquidity at JPMorgan Asset Management.

He added that the firm expects to be a leader in the space by offering blockchain-based equivalents to traditional money-market products.

The launch comes amid accelerating momentum for tokenized assets on Wall Street, following the passage of the GENIUS Act earlier this year.

The legislation established a US regulatory framework for stablecoins and is widely viewed as a catalyst for broader tokenization efforts across funds, bonds, and real-world assets.

Since then, major financial institutions have moved quickly to explore blockchain as core market infrastructure rather than a peripheral experiment.

For Ethereum, JPMorgan’s decision to deploy MONY on its network is being read as a meaningful institutional endorsement. Fundstrat co-founder Tom Lee reacted to the news by calling it “bullish for ETH.”

This is bullish for $ETH https://t.co/LdGMHYKM9P

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) December 15, 2025

This comment highlights how products like MONY expand Ethereum’s real-world utility through transaction activity, smart contract execution, and deeper integration into global finance.

Crypto commentators echoed the sentiment, with some arguing that Ethereum’s role as the settlement layer for regulated financial products is becoming increasingly difficult to ignore.

JPMorgan vs. BlackRock: Tokenized Money Market Funds Signal a New Era in Finance

JPMorgan’s move also invites comparisons with BlackRock’s tokenized money market fund, BUIDL, which has grown to roughly $1.83 billion in assets under management, according to public blockchain data.

Like MONY, BUIDL invests in short-term US Treasuries, repurchase agreements, and cash equivalents. However, it follows a multi-chain strategy and is administered through a different tokenization partner.

Together, the two funds highlight a broader trend that traditional finance (TradFi) firms are converging on blockchain to modernize low-risk, yield-bearing products.

More broadly, analysts view tokenization as a means for traditional money market funds to remain competitive with stablecoins, while unlocking new use cases such as on-chain settlement, programmability, and enhanced transferability.

JPMorgan has already experimented with tokenized deposits, private equity funds, and institutional payment tokens, suggesting that MONY is part of a longer-term strategy rather than a standalone pilot.

As regulatory clarity improves and institutional participation deepens, JPMorgan’s Ethereum-based fund reinforces the narrative that blockchain, once seen as niche, is steadily becoming an integral part of the operating system of modern finance.

For Ethereum, that shift may prove to be one of the most consequential signals yet.

Chart of the Day

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

• Russell 2000 sets new highs, rekindling a familiar Bitcoin pattern.
• One critical XRP price level surfaces — Holding it could trigger a 9% bounce.
• Top 3 price predictions: Bitcoin, gold, and silver signal a high-stakes turning point.
• What does the stock–crypto investor divide signal for the future?
• Base creator Jesse Pollak sparks backlash by endorsing Soulja Boy–linked meme token.
• Bitcoin loses whale support? Yet history shows the price can still rise.
• Yuan at 14-month high as Fed-BOJ-PBOC split — crypto impact.
• Coinbase CLO Paul Grewal: NYT’s SEC crypto story admits no impropriety—So why the headline?

Crypto Equities Pre-Market Overview

Company	At the Close of December 12	Pre-Market Overview
Strategy (MSTR)	$176.45	$176.75 (+0.17%)
Coinbase (COIN)	$267.46	$268.40 (+0.35%)
Galaxy Digital Holdings (GLXY)	$26.75	$26.75 (0.00%)
MARA Holdings (MARA)	$11.52	$11.56 (+0.35%)
Riot Platforms (RIOT)	$15.30	$15.31 (+0.065%)
Core Scientific (CORZ)	$16.53	$16.65 (+0.73%)

The post Tom Lee Spots a Big Ethereum Signal in JPMorgan’s Tokenization Push| US Crypto News appeared first on BeInCrypto.

Ethereum consensus client Prysm said validators missed out on 382 ETH, equivalent to more than $1 million, after a software bug triggered network disruptions shortly after the recent Fusaka upgrade.

The incident, detailed in a post-mortem titled “Fusaka Mainnet Prysm incident,” stemmed from a resource exhaustion event that affected nearly all Prysm nodes and led to missed blocks and attestations.

What Caused Prysm’s Outage?

According to Offchain Labs, the developer behind Prysm, the problem emerged on December 4 when a previously introduced bug caused delays in validator requests.

Those delays resulted in missed blocks and attestations across the network.

“Prysm beacon nodes received attestations from nodes that were possibly out of sync with the network. These attestations referenced a block root from the previous epoch,” the project explained.

The disruption led to 41 missed epochs, with 248 blocks missing out of 1,344 available slots. That represented an 18.5% missed slot rate and pushed overall network participation down to 75% during the incident.

Offchain Labs said the bug responsible for the behavior was introduced and deployed to testnets about a month earlier, before being triggered on mainnet following the Fusaka upgrade.

While a temporary mitigation reduced the immediate impact, Prysm said it has since implemented permanent changes to its attestation validation logic to prevent a recurrence.

Ethereum’s Client Diversity

Meanwhile, the outage has renewed scrutiny around Ethereum’s client concentration and the risks posed by software monocultures.

Offchain Labs said the outage could have had more severe consequences if Prysm had accounted for a larger share of Ethereum’s validator base. The firm pointed to Ethereum’s client diversity as a key factor in preventing a wider network failure.

“A client with more than 1/3rd of the network would have caused a temporary loss in finality and more missed blocks. A bug client with more than 2/3rd could finalize an invalid chain,” it stated.

Despite that mitigation, the incident has intensified calls for greater client diversity.

Data from Miga Labs show that Lighthouse remains the dominant Ethereum consensus client, accounting for 51.39% of validators. Prysm represents 19.06%, followed by Teku at 13.71% and Nimbus at 9.25%.

Lighthouse’s share places it roughly 15% points away from a threshold that some researchers view as a systemic risk.

As a result, developers and ecosystem participants have again urged validators to consider switching to alternative clients to reduce the likelihood that a single software flaw could disrupt the blockchain’s core operations.

The post Prysm Bug Cost Ethereum Validators Over $1 Million After Fusaka Upgrade appeared first on BeInCrypto.

Ethereum’s long-term trajectory has become a focal point again after Arthur Hayes laid out a sweeping forecast for the asset’s institutional future, price potential, and competitive space. 

His comments arrived as Ethereum trades near $3,200, fluctuating between $3,060 and $3,440 over the past week. Major players such as Tom Lee’s BitMine also increased their Ethereum holdings at an unprecedented pace.

Ethereum Becomes the Institutional Default

Hayes believes the market still misunderstands how deeply traditional institutions intend to integrate Ethereum. He argues that after years of failed experiments with private blockchains, banks now recognize the need for a public settlement layer.

“These organizations finally understand that you cannot have a private blockchain; you must use a public blockchain for security and real usage,” he said.

He links this shift to the stablecoin boom, which has forced banks to accept the value of on-chain settlement. 

According to Hayes, Ethereum is positioned as the only platform with the security, liquidity, and developer depth institutions need.

He expects this shift to drive a significant price resurgence for Ethereum in the coming cycle, complementing aggressive treasury accumulation by firms such as BitMine.

BitMine bought 33,504 ETH ($112 million) this week and 138,452 ETH (~$435 million) earlier in December, bringing its total to roughly 3.86 million ETH. That scale of accumulation has strengthened the narrative that institutions are positioning for Ethereum’s next major cycle. 

Privacy Remains Ethereum’s Biggest Weakness, But L2s Will Cover It

Hayes acknowledges Ethereum still lacks the privacy guarantees large institutions require. He notes that this is “the biggest thing Ethereum doesn’t have yet,” though he says Vitalik Buterin’s roadmap is actively addressing it.

Despite this gap, he argues institutional adoption will not be delayed. Instead, enterprises will deploy privacy-enabled Layer-2 networks while relying on Ethereum for settlement. 

He believes Ethereum L1 remains the “security substrate” regardless of whether activity occurs on L2s like Arbitrum or Optimism.

“There may need to be a debate about how fees are distributed between L2s and Ethereum L1,” he said, but he stressed that this does not change the underlying reality: institutions will still secure their operations using Ethereum.

This aligns with current ecosystem trends. Exchange balances are at multi-year lows, and whales have accumulated over 900,000 ETH in recent weeks, according to Santiment data. 

Institutional architecture continues to form around the Ethereum base layer, even as fees fall amid L2 migration.

A Narrow Field of Winners: Ethereum First, Solana Second

Hayes sees the future of public blockchains consolidating around a very small group. He places Ethereum as the clear long-term winner, with Solana in a distant but durable second place.

He credits Solana’s rise from $7 to $300 to intense meme coin activity in 2023 and 2024. However, he states Solana “needs a new trick” to outperform Ethereum again. 

While he expects Solana to remain relevant, he does not expect it to match Ethereum’s institutional role or long-term price strength.

Hayes views nearly all other L1s as structurally weak. He dismissed high-FDV chains such as Monad as over-inflated projects likely to collapse after an initial pump. 

“Monad won’t be able to compete with Ethereum

I have no belief that this is a legitimate blockchain.

It’ll never have any real usage.”

— Arthur Hayes

if you understand network effects, you know Ethereum’s here to stay at the top.

Monad’s solution is simple: build on… pic.twitter.com/EuXpU6VK1N

— rip.eth (@ripeth) November 29, 2025

50 ETH to Become a Millionaire by Next Election

Hayes offered his most explicit numerical prediction when asked how much ETH one would need to become a millionaire in the next cycle. 

He stated that Ethereum could reach $20,000, implying that 50 ETH would be enough to reach a seven-figure portfolio.

The BitMex founder expects this price target to materialize by the next US presidential election. His outlook aligns with the current supply environment: exchange reserves are shrinking, institutions are accumulating, and treasury buyers like BitMine continue to deploy hundreds of millions into ETH.

Arthur Hayes was just asked about Tom Lee saying $ETH could flip $BTC.

He says Ethereum is the best L1, with the most developers, the best DeFi, and the strongest talent. pic.twitter.com/EsQ74JpNRV

— SamAlτcoin.eth 🌎 (@SAMALTCOIN_ETH) October 21, 2025

If Ethereum fails to meet these expectations, Hayes says it will be due to narrative breakdown. 

Also, if stablecoin usage slows or institutions retreat from on-chain trading, Bitcoin could outperform Ethereum for a prolonged period.

However, he argues that current market structure favors Ethereum’s long-term dominance—especially as banks prepare to execute Web3 strategies on public infrastructure.

The post Arthur Hayes Makes Wild Ethereum Prediction for 2026 and Beyond appeared first on BeInCrypto.

After the FED announced interest rate cuts, major whale wallets began pouring capital into long positions on Ethereum (ETH). These moves signal strong confidence in ETH’s upside. They also increase overall risk.

Several factors suggest that their long positions may face liquidation soon without effective risk management.

How Confident Are Whales in Their Ethereum Long Positions?

Whale behavior offers a clear view of current sentiment.

On-chain tracking account Lookonchain reported that a well-known whale, considered a Bitcoin OG, recently expanded a long position on Hyperliquid to 120,094 ETH. The liquidation price sits at only $2,234.

This position is currently showing a 24-hour PnL loss of more than $13.5 million.

Similarly, another well-known trader, Machi Big Brother, is maintaining a long position worth 6,000 ETH with a liquidation price of $3,152.

Additionally, on-chain data platform Arkham reported that the Chinese whale trader who called the 10/10 market crash is now holding a $300 million ETH long position on Hyperliquid.

Whale activity in ETH long positions reflects their expectation of a near-term price increase. However, behind this optimism lies a significant risk stemming from Ethereum’s leverage levels.

ETH Leverage Is Reaching Dangerous Highs

CryptoQuant data shows that ETH’s estimated leverage ratio on Binance has reached 0.579 — the highest in history. This level indicates extremely aggressive leverage usage. Even a small price swing could trigger a domino effect.

“Such a high leverage ratio means that the volume of open contracts financed by leverage is rising faster than the volume of actual assets on the platform. When this occurs, the market becomes more vulnerable to sudden price movements, as traders are more susceptible to liquidation—whether in an upward or downward trend,” analyst Arab Chain said.

Historical data indicate that similar peaks typically coincide with periods of intense price pressure and often signal local market tops.

Spot Market Weakness Adds More Risk

The spot market is also showing clear signs of weakening. Crypto market watcher Wu Blockchain reported that spot trading volume on major exchanges dropped 28% in November 2025 compared to October.

November Exchange Data Report: Spot trading volume of major exchanges in November 2025 fell 28% compared with October. The top three exchanges by change rate were Bitfinex +17%, Coinbase -8%, and KuCoin -17%. The bottom three were Bitget -62%, Gate -44%, and MEXC -34%.… pic.twitter.com/oXgFKyrv6b

— Wu Blockchain (@WuBlockchain) December 10, 2025

Another report from BeInCrypto highlighted that stablecoin inflows into exchanges have declined by 50%, falling from $158 billion in August to $ 78 billion as of today.

Combined, low spot buying power, high leverage, and shrinking stablecoin reserves reduce ETH’s ability to recover. These conditions could put whale long positions at significant risk of liquidation.

The post Whales Are Going All-In on Ethereum — But Record Leverage Puts Their Longs at Risk appeared first on BeInCrypto.

BitMine Immersion Technologies, the largest corporate holder of Ethereum (ETH), has doubled down on its acquisition of ETH in December, highlighting confidence in the asset.

The renewed buying comes despite a tough environment for Ethereum. Rising exchange inflows and ongoing exchange-traded fund (ETF) outflows point to short-term pressure across the market.

BitMine Scoops Up 138,452 ETH in a Week, Now Controls 3.2% of Supply

According to a recent disclosure, BitMine acquired 138,452 ETH last week, representing a 156% increase over the previous four weeks. Its total holdings stand at 3.86 million ETH.

This accounts for over 3.2% of Ethereum’s circulating supply. Furthermore, it puts BitMine two-thirds of the way toward its goal to control 5% of ETH’s supply.

Since adopting ETH as a reserve asset, BitMine has continued to make large-scale purchases. Between June 30 and October 5, BitMine accumulated 2.83 million ETH. Since October 5, it has added another 1.03 million ETH to its holdings.

Tom Lee(@fundstrat)'s #Bitmine bought another 138,452 $ETH($434.74M) last week and currently holds 3,864,951 $ETH($12.13B).https://t.co/TNELQSq7d7 pic.twitter.com/XKHh3nBBfC

— Lookonchain (@lookonchain) December 8, 2025

Ethereum’s weakness throughout the fourth quarter makes BitMine’s steady accumulation even more notable. Since early October, ETH has shed about 24.8% of its value, reflecting persistent downward pressure.

December has offered a small break from that trend. The price has climbed more than 4% since the start of the month, and with it have climbed BitMine’s ETH purchases.

According to BitMine Chairman Tom Lee, the company’s accelerated purchasing activity reflects its confidence that ETH will likely see gains in the coming months, supported by several key catalysts.

These include the Fusaka upgrade, which was activated last week and delivers meaningful improvements to Ethereum’s scalability, security, and overall network efficiency. BitMine also points to the broader macro backdrop, with the Federal Reserve ending quantitative tightening and potentially introducing another interest rate cut tomorrow.

Together, these developments form the basis for the company’s view that market conditions could turn more supportive for ETH after weeks of volatility.

“We are now more than 8 weeks past the October 10th liquidation shock event, a sufficient length of time to allow crypto to again trade on forward fundamentals,” Lee added.

Market Conditions Point to Near-Term Volatility

Despite this, on-chain data signals caution. CryptoOnchain noted that Ethereum exchange netflow to Binance has surged. The exchange received 162,084 ETH on December 5, 2025. This was the largest single-day inflow of ETH to the exchange since May 2023.

Large deposits on exchanges often suggest impending sell pressure, since investors typically transfer tokens to platforms before liquidating.

“Given the magnitude of this inflow, market participants should remain cautious. A supply shock of this size, if executed as market orders, could lead to heightened volatility or a short-term price correction,” the analyst stated.

Furthermore, Ethereum exchange-traded funds are also signaling weakened demand. The ETFs experienced a record $1.4 billion in net outflows in November 2025, marking the largest monthly withdrawal on record.

The trend has continued into December. According to SoSoValue, an additional $65.59 million exited ETH-focused ETFs in the first week of the month.

“Historically, ETF flow reversals tell you more about liquidity pressure than about long term fundamentals. When redemptions spike, it’s usually a sign that broader risk sentiment is cracking, not that the asset itself broke. If ETF outflows continue, near term price action stays choppy as liquidity gets drained at the edges,” Milk Road posted.

The ongoing divergence between direct accumulation and ETF redemptions highlights a market split, with retail and institutional players following diverging strategies regarding Ethereum’s outlook.

The post Why Tom Lee’s BitMine Is Buying Ethereum (ETH) Aggressively Despite Market Fear appeared first on BeInCrypto.

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 global markets quietly shift with Japan’s bond yields surging and the BoJ hinting at a rate hike. The decades-long yen carry trade, which fueled stocks, crypto, and risk assets, could be unraveling faster than anyone expects.

Crypto News of the Day: Bitcoin Braces as BoJ May End Decades of Cheap Money

Global markets are bracing for a potential macro shock as the Bank of Japan (BoJ) prepares for its December 18–19 monetary policy meeting.

Traders now price a 90% chance of a 25 basis point rate hike, following signals from BoJ Governor Kazuo Ueda and persistent inflation above 2%.

Japan’s 2-year government bond yield has climbed above 1%, its highest since the 2008 Global Financial Crisis, while the 10-year JGB hit a 17-year high, highlighting rising borrowing costs.

Why the Yen Carry Trade Matters

For nearly three decades, the yen carry trade fueled global risk-taking. Investors borrowed yen at ultra-low rates, converted it to dollars, and deployed capital into higher-yielding assets, including US stocks, bonds, and cryptocurrencies like Bitcoin.

When Japan raises rates or the yen strengthens, this trade unwinds violently, forcing rapid asset sales.

The consequences are not hypothetical: in August 2024, a BoJ hike triggered a $600 billion crypto market wipe, including Bitcoin falling to $49,000 and $1.14 billion in liquidations. Analysts warn that a similar scenario could repeat if Japanese yields rise further.

🚨 The BOJ is about to shake crypto markets
🇯🇵Japan's likely rate hike to 80% Dec 18-19 – this threatens the yen carry trade that's been funding $BTC & risk assets for years
Last time they hiked was Aug 2024.

🔥BTC crashed to $49K
$600B wiped from crypto
$1.14B in liquidations…

— PaulBarron (@paulbarron) December 5, 2025

Besides Paul Barron, analyst Great Martis also calls the BoJ hike a potential “canary in the coal mine” for crypto and global markets.

“When the reckless BOJ is forced to raise rates, the yen carry trade will begin to unwind, causing market turmoil. Canary in the coal mine,” Martis wrote in a post.

Meanwhile, early signs of stress are emerging, as hedge funds and institutional investors closely monitor the simultaneous tightening of liquidity in Japan, the US, and China. This rare convergence could accelerate deleveraging.

Nonetheless, counterpoints exist. Analyst Negentropic notes that most leverage has already been flushed since October. In the same tone, Bob Elliot argues the yen carry trade is largely muted.

The Yen Carry Trade Is Dead

Despite a falling FX and low rates, the yen carry trade remains muted. Naked FX borrowing ended with the GFC, with the only thing left a lingering nostalgia for a trade that mattered 20yrs ago.https://t.co/1h7Zlp3KVQ pic.twitter.com/2llIZerTqt

— Bob Elliott (@BobEUnlimited) December 2, 2025

Yet even modest unwinding could pressure highly leveraged crypto positions and risk assets globally.

If QE Is Not the Immediate Solution, What’s Next for Bitcoin and Global Risk Assets?

Nic Puckrin, co-founder of Coin Bureau, emphasizes that quantitative easing (QE) historically follows a crisis, not routine rate adjustments.

The current tightening in Japan, the US, and China suggests that markets may face further drawdowns before any liquidity support arrives. Investors betting on easy money could face sharper-than-expected volatility.

Crypto markets are often the first to absorb funding shocks, making Bitcoin and Ethereum bellwethers for liquidity stress.

With the BoJ’s rate decision looming, traders should monitor:

• JGB yields,
• USD/JPY levels, and
• Leveraged positions.

If Japan continues tightening, global deleveraging could persist into 2026, testing the resilience of both crypto and traditional markets.

The era of free Japanese money appears to be coming to an end. Markets now face a higher-volatility environment, where fundamental value may replace cheap leverage as the main driver of asset prices.

Chart of the Day

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

• Why XRP price refuses to rise despite Ripple’s mega moves.
• Polymarket trader makes $1 million on Google search bets, sparking insider trading fears.
• Bitcoin exchange supply nears 5-year low after $2 billion buy this week.
• IMF warns stablecoins pose financial stability risks as cross-border flows surpass Bitcoin and Ethereum.
• Four reasons December could be the best time to start DCA into altcoins.
• Wolfe Research identifies ‘maximum disagreement’ as key Bitcoin market signal: What this means.
• Yi He to women: “No one goes easy on you in business.”

Crypto Equities Pre-Market Overview

Company
Strategy (MSTR)	$186.01	$184.62 (-0.75%)
Coinbase (COIN)	$274.05	$273.30 (-0.27%)
Galaxy Digital Holdings (GLXY)	$27.57	$27.73 (+0.58%)
MARA Holdings (MARA)	$12.44	$12.37 (-0.57%)
Riot Platforms (RIOT)	$15.59	$15.57 (-0.13%)
Core Scientific (CORZ)	$17.08	$17.09 (+0.059%)

The post Yen Carry Trade Collision: Bank of Japan’s Rate Shock Aims at Bitcoin | US Crypto News appeared first on BeInCrypto.

Ethereum just completed the Fusaka upgrade, a hard fork designed to prepare the network for larger scale and cheaper use. While technical on paper, the change touches the core functions of Ethereum — how data is stored, how transactions fit into blocks, and how Rollups like Arbitrum, Base, and Optimism interact with the main chain. 

For anyone holding ETH, this upgrade forms the groundwork for lower fees, better network efficiency, and a more resilient long-term ecosystem.

A Larger Network With More Room to Breathe

The biggest change arrived in how Ethereum handles data. 

Every transaction, NFT mint, DeFi swap, or Layer-2 batch needs block space, and until now, that space was limited. Fusaka increases Ethereum’s capacity so blocks can carry more information at once. 

Missed the Fusaka network upgrade?
13 Ethereum Improvement Proposals (EIPs) are now live on Mainnet.

Here’s Fusaka in 35 seconds. pic.twitter.com/DlUh1ATA55

— Ethereum (@ethereum) December 4, 2025

This does not make the chain instantly faster, but it removes pressure when demand spikes, such as during market volatility or popular token launches. 

In simple terms, Ethereum can absorb more activity without struggling.

Cheaper Rollups Through Expanded Blob Capacity

A large portion of today’s Ethereum traffic comes from Rollups. These networks batch thousands of user transactions and settle them on Ethereum as compressed data called “blobs.” 

Before Fusaka, blob space was constrained. When demand surged, fees climbed. Fusaka expands the room available for blob submissions and introduces a flexible system for raising or lowering capacity without a full upgrade. 

As rollups scale into this new space, users should experience lower transaction costs and smoother application activity. 

The end goal is simple: more transactions, less friction.

PeerDAS: A Simpler Way to Verify Data

Another major improvement is how Ethereum nodes verify data. Previously, nodes had to download large sections of block data to confirm that nothing was missing or hidden. 

Fusaka introduces PeerDAS, a system that checks small, random pieces of data rather than the entire load. 

It works like inspecting a warehouse by opening a few random boxes instead of checking every single one. 

PeerDAS in Fusaka is significant because it literally is sharding.

Ethereum is coming to consensus on blocks without requiring any single node to see more than a tiny fraction of the data. And this is robust to 51% attacks – it's client-side probabilistic verification, not… pic.twitter.com/OK81xBteER

— vitalik.eth (@VitalikButerin) December 3, 2025

This reduces bandwidth and storage requirements for validators and node operators, making it easier — and cheaper — for more people to run infrastructure. 

A wider validator base strengthens decentralization, which ultimately strengthens Ethereum’s security and resilience.

Higher Block Capacity Means More Throughput

Alongside scaling capacity, Fusaka also raises the block gas limit. A higher limit means more work can fit inside each block, allowing more transactions and smart-contract calls to settle without delay. 

It doesn’t increase block speed, but it increases throughput. DeFi activity, NFT auctions, and high-frequency trading will have more room to breathe in peak hours.

Better Wallet Support and Future UX Improvements

Fusaka also includes improvements to Ethereum’s cryptography and virtual machine. The upgrade adds support for P-256 signatures, which are used in modern authentication systems, including those behind password-less login on smartphones and biometric devices. 

This opens a path for future wallets that act more like Apple Pay or Google Passkeys rather than seed-phrase-based apps. Over time, this could make Ethereum access simpler for mainstream users.

Ethereum is about to 10x the wallet UX.

The Fusaka upgrade includes EIP-7951 – support for the signature scheme that the iPhones use to power things like Face ID.

Meaning you'll soon be able to sign transactions with your face.

Huge win for bringing normal people on-chain. pic.twitter.com/7Ad38m4Oxz

— Jarrod Watts (@jarrodwatts) November 27, 2025

What Fusaka Means for ETH Holders

The impact for ETH holders is gradual but meaningful. Fees on Layer-2 networks should ease as data capacity expands. Network congestion should become less common. More validators can participate due to lower hardware demands. 

Most importantly, Ethereum now has room to grow without sacrificing security or decentralization. If adoption increases, settlement volume grows with it — and so does ETH’s role as the asset that powers, secures, and settles everything on top.

$ETH is still consolidating around the $3,000 level.

Not much price action due to weekends, but next week could be interesting.

QT is ending on December 1st, Powell's speech is on December 1st, and the Fusaka upgrade is coming on December 3rd.

If Ethereum holds above the… pic.twitter.com/pxgmrOHyah

— Ted (@TedPillows) November 30, 2025

A Foundational Upgrade, Not a Flashy One

Fusaka does not rewrite Ethereum’s economics or make ETH suddenly deflationary, but it strengthens the foundation that future demand depends on. Cheaper rollup fees invite usage. 

A more scalable base layer invites developers. A more accessible node environment invites participation. These are structural upgrades, the kind that do little in a day but transform the network over time.

Ethereum widened the highway, improved the toll system, and made it easier for new drivers to join. That is the real meaning of Fusaka — a quiet shift with long-term weight. 

As Layer-2 networks expand and applications multiply, the effects should move from technical discussion into user experience, transaction cost, and ultimately, ETH value itself.

The post What Actually Changed with the Ethereum Fusaka Upgrade appeared first on BeInCrypto.

Ethereum has successfully activated the Fusaka upgrade on mainnet, marking its second major network enhancement in 2025.

With PeerDAS now live, ETH has surged past the critical $3,200 resistance zone, and traders are watching whether the rally can sustain and even extend further.

Fusaka Goes Live

Ethereum confirmed the Fusaka mainnet activation on December 3 at 22:04 UTC. The upgrade introduces PeerDAS technology, which unlocks up to 8x data throughput for rollups, raises the gas limit from 45 million to 60 million units, and adds R1 curve support for improved user experience. Currently, Ethereum processes between 1.3 and 1.8 million transactions daily and holds over $73 billion in value locked in DeFi.

For L2 and Layer 2 rollups, Fusaka is even more relevant. PeerDAS increases the available space for blobs and prepares gradual capacity increases in future forks focused solely on data. The goal is clear: to maintain very low fees on networks like Arbitrum, Base, or Optimism, even if demand continues to grow.

Community members will monitor the network for issues over the next 24 hours.

Fusaka is live on Ethereum mainnet!

– PeerDAS now unlocks 8x data throughput for rollups
– UX improvements via the R1 curve & pre-confirmatons
– Prep for scaling the L1 with gas limit increase & more

Community members will continue to monitor for issues over the next 24 hrs.

— Ethereum (@ethereum) December 3, 2025

ETH Breaks $3,200 Resistance

ETH is trading at $3,231, up 7.38% over the last 24 hours. The price has cleared the $3,154-$3,200 supply cluster that marked strong resistance, a move that traders see as a bullish signal.

The pattern echoes the pre-Pectra phase in May 2025, when Ethereum surged 56% in just seven days following that upgrade. Technical charts show a classic bullish divergence: while price marked a lower low between November 4 and December 1, RSI printed a higher low—a setup that often signals weakening selling pressure.

On-chain data supports the bullish case. Addresses holding at least $1 million in ETH have increased from 13,322 to 13,945, representing roughly $623 million in additional accumulation by large holders.

Key Levels to Watch

With the $3,200 zone now cleared, the next target sits at $3,653. If the rally extends 56% from Pectra, a move toward $4,262 comes into view.

The squeeze is on.$ETH surges above $3,200 and is now up +17% off Monday’s low. pic.twitter.com/YsdnzsSI7Q

— Noble Investing (@NobleInvesting) December 4, 2025

On the downside, $3,200 now serves as the first support to hold. A break below $2,996 would weaken the bullish structure, exposing $2,873 and potentially $2,618.

For now, sustaining above $3,200 will determine whether Fusaka marks the beginning of a new bullish phase.

The post Fusaka Pushes Ethereum Above $3,200: It Will Reach $4,262 If This Happens appeared first on BeInCrypto.

Crypto markets sold off sharply after Japan’s 10-year government bond yield surged to its highest level since 2008. The move triggered a wave of global de-risking and one of the largest liquidation events in weeks.

The move erased billions of dollars in digital-asset value, highlighting just how exposed crypto remains to macroeconomic liquidity shifts far outside its own ecosystem.

Japan’s Yield Spike: The Yen Carry Trade Unwinds and Crypto Feels It First

The total crypto market cap declined by approximately 5% over the last 24 hours, with Bitcoin and Ethereum prices falling by more than 5%.

According to Coinglass, more than 217,000 traders were liquidated during the downturn, resulting in a loss of almost $640 million in positions.

This illustrates how quickly leverage can evaporate when global rates move violently.

The catalyst came from Tokyo, where the 10-year Japanese government bond yield spiked to 1.84%, a level not seen since April 2008.

BREAKING: Japan's 10Y Government Bond Yield surges to 1.84%, its highest level since April 2008.

This chart is concerning to say the least. pic.twitter.com/fBkMMyBnqy

— The Kobeissi Letter (@KobeissiLetter) December 1, 2025

The prevailing sentiment is that the yield breakout is more than just a technical move. It signals that the decades-long yen carry trade may finally be unwinding.

For nearly 30 years, Japan’s near-zero interest rates allowed investors to borrow cheaply in yen and deploy capital into higher-yielding assets abroad. Such avenues include:

• US Treasuries
• European bonds
• Risk assets like equities and crypto.

Rising yields in Japan threaten to reverse this flow, pulling capital back home and tightening liquidity globally.

“For 30 years, the Yen Carry Trade subsidized global arrogance — zero rates… free leverage… fake growth… entire economies built on borrowed time and borrowed money. Now Japan has reversed the switch. Rates climbed. Yen strengthened. And the world’s favourite ATM just turned into a debt-collector,” wrote data scientist ViPiN on X (Twitter).

When Japanese yields rise, global liquidity contracts, leading to a repricing across the market. This likely explains why Silver (XAG) has not yet experienced its Supercycle, and Bitcoin is dealing with late-cycle volatility.

“Japan is draining liquidity, Bitcoin is absorbing the shock, and Silver is preparing for the repricing of a lifetime,” stated one analyst in a post.

Crypto’s Sell-Off Isn’t Local, It’s a Macro Liquidity Crunch

Shanaka Anslem, an ideologist and popular user on X (Twitter), described the JGB breakout as “the chart that should terrify every portfolio manager.

THE CHART THAT SHOULD TERRIFY EVERY PORTFOLIO MANAGER ON EARTH

Japan’s 10 Year Government Bond Yield just hit 1.84%.

The highest since April 2008.

Up 11.19% in a single session.

You need to understand what this means.

For three decades, Japan was the anchor. Zero rates.… https://t.co/1mpX0HuPdp

— Shanaka Anslem Perera ⚡ (@shanaka86) December 1, 2025

The strategist, who has reportedly witnessed infrastructural breakdowns, currency shocks, and state-level crises, cited:

• Inflation above 3%,
• Higher wage growth, and
• A Bank of Japan that is increasingly losing its ability to suppress yields.

These forces are pushing Japan into a structural shift away from the ultra-loose monetary regime that defined global markets for decades.

“When Japan raises rates, it sucks liquidity out of the global system. The “fuel” that powered the stock market rally is being drained. We can expect volatility in high-growth stocks as this “cheap money” era ends,” added another investor in a post.

The timing of the move is especially significant. The Federal Reserve has just ended its quantitative tightening program, the US faces record Treasury issuance, and interest payments on US debt have crossed the $1 trillion annual mark.

Meanwhile, China, historically one of the largest foreign buyers of US Treasuries, has slowed its accumulation. With Japan now under pressure to repatriate capital, two of America’s most important external funding sources are simultaneously stepping back.

“When the world’s creditor nations stop funding the world’s debtor nations at artificially suppressed rates, the entire post-2008 financial architecture must reprice. Every duration bet. Every leveraged position. Every assumption about perpetually falling rates. This is not a Japanese story. This is the global story. The 30-year bond bull market ended. Most just have not realized it yet,” Shanaka articulated.

Crypto, as one of the highest-beta corners of global markets, tends to react first when liquidity tightens. The scale of the liquidations suggests that leveraged traders were caught offside by the bond volatility, forcing rapid position unwinds across major assets.

Rather than a crypto-specific meltdown, the sell-off reflects a broad revaluation of duration, leverage, and risk as global bond markets reset.

Therefore, traders should probably watch Japan’s bond market as closely as they watch Bitcoin charts. If JGB yields continue to rise, it could tighten global liquidity through the end of the year.

The post Japan’s Bond Shock Slams Crypto: $640 Million Liquidated as 10-Year JGB Hits 17-Year High appeared first on BeInCrypto.

Bitcoin briefly plunged below $87,000, wiping out a week’s gains in one session.

The fast selloff triggered $400 million in liquidations within just 60 minutes and pushed the global crypto market capitalization down 4% to $3.04 trillion. Trading activity surged as both retail and institutional investors reacted swiftly to price pressure.

Market Turmoil Sparks Massive Liquidations

Liquidations surged across leveraged positions, reflecting the speed of the downturn. Market data noted $400 million liquidated in just one hour. This rapid wave of losses highlights the risks for traders during sharp price moves.

BREAKING: Bitcoin falls -$4,000 in 2 hours as mass liquidations return.

$400 million worth of levered longs have been liquidated over the last 60 minutes. pic.twitter.com/qKB7MYJapu

— The Kobeissi Letter (@KobeissiLetter) December 1, 2025

Trading volume spiked to over $110 billion as investors adjusted their holdings. Bitcoin’s dominance stood at 57.1%, while Ethereum held 11.3%, according to CoinGecko data.

The Kobeissi Letter attributed the crash to thin weekend liquidity and record-high leverage, saying, “This crypto bear market is still structural in nature. We do NOT view this as a fundamental decline.” The analyst noted that Bitcoin fell $4,000 in minutes with no news. This triggered a domino-effect selloff amplified by mass liquidations of leveraged positions.

Other analysts have warned that Bitcoin’s price pattern resembles earlier bearish cycles. Following a recovery above $90,000 after a drop on November 20, Bitcoin hovered around $91,208.85 on November 28 and maintained support at $90,000 for six days.

Korbot Labs describes that the current price action echoes April 2024, when Bitcoin bounced back above $70,000 only to drop to $57,000 by May and later to $67,000 by June. This pattern suggests that further sideways movement or another correction is possible.

Another analyst cautioned about the risk of deeper losses, noting that a “wipe out” could occur if Bitcoin falls through the $80,000 support level.

“Bitcoin not a good open to start the week! Much closer to becoming 2-1-2d as a measured move. This tends to cause a ‘wipe out’ type move if we successfully break through 80.00. Could see as low as 48k if we see the sellers stick around into the end of this year.”

Technical analysis also points to crucial support zones. Should selling persist, prices could slip much further. A drop to $48,000 would mark a dramatic 45% decline from current levels, but such a move would likely require sustained bearish sentiment.

Asset Rotation Narrative Shapes Sentiment

Some analysts see Bitcoin’s selloff as part of a broader shift in asset allocation. The move came as traditional safe-haven assets like precious metals outperformed. This suggests some investors are reconsidering their risk exposure.

This argument states that capital is flowing from digital assets to “hard money” alternatives. Silver, for example, surged even as Bitcoin fell. Some analysts see this as a sign of changing investor preferences.

“While #Bitcoin just erased most of the last week gain in a single candle, #Silver is breaking out vertically like there’s no tomorrow. Money is choosing real assets over speculative assets. The rotation is screaming loud: Paper wealth → Hard money, Digital risk → Monetary metals” – Macrobysunil

This theory remains hotly debated. Bitcoin has repeatedly rebounded from steep selloffs. Its 57.1% market dominance shows it still attracts most digital asset flows, despite volatility.

Meanwhile, on the first day of December, Bitcoin briefly dipped below $87,000 before quickly recovering. At the time of writing, Bitcoin is trading in the $87,200–$87,400 range, with market participants closely watching whether the $87,000 support level will hold.

The post Bitcoin Dips Below $87K: One Week’s Gains Gone in One Candle appeared first on BeInCrypto.

On December 1, 2025, the Federal Reserve (Fed) will officially end Quantitative Tightening (QT), freezing its balance sheet at $6.57 trillion after draining $2.39 trillion from the system.

Analysts point to parallels with 2019, when the last QT pause coincided with a major bottom in altcoins and a surge in Bitcoin. With liquidity returning and interest rates already cut to 3.75–4.00%, crypto markets are bracing for a potentially bullish shift.

Fed Ends QT Tomorrow — Crypto Eyes 2019-Style Liquidity Boost

The Fed’s halt of its balance sheet runoff comes amid strained bank reserves, now roughly $3 trillion, or about 10% of US GDP. The Overnight Reverse Repo facility, which previously absorbed $2.5 trillion in excess cash, has dropped to near zero, removing a key liquidity buffer.

October 2025 saw the Secured Overnight Financing Rate spike to 4.25%, exceeding the Fed’s target range. The Standing Repo Facility recorded a single-day activation of $18.5 billion, reflecting persistent demand for liquidity.

FOMC minutes from October 29 detail operational adjustments designed to improve policy transmission.

“The Committee decided to conclude the reduction of its aggregate securities holdings on December 1,” read an excerpt in the Fed’s October 29 statement.

This means that QT officially ends on December 1, and the Fed will stop letting its securities mature without reinvestment. From that day forward, the balance sheet will no longer shrink.

The Committee noted that downside risks to employment have risen, even though unemployment remains low, and inflation is “somewhat elevated.”

Analysts note that this marks a long-term shift: the Standing Repo Facility, initially an emergency tool, now functions as a permanent daily liquidity provider, effectively embedding the Fed in Treasury market operations.

Researcher Shanaka Anslem describes this as the “Standing Repo Era,” a structural transformation with lasting implications for global finance.

THE FED JUST CROSSED A THRESHOLD NO ONE IS DISCUSSING

December 1, 2025. The Federal Reserve terminates Quantitative Tightening. Balance sheet frozen at $6.57 trillion. The largest liquidity withdrawal in central banking history ends after draining $2.39 trillion from the… pic.twitter.com/W0QjrXC3JB

— Shanaka Anslem Perera ⚡ (@shanaka86) November 30, 2025

Historical Parallels and Crypto Market Implications

Crypto analysts are drawing direct comparisons to August 2019, when the Fed ended QT, and altcoins bottomed.

$OTHERSBTC & $WALCL (Fed Balance Sheet)

The End of QT marked the bottom on $OTHERSBTC back in August 2019

This time, QT ends on December 1, 2025 👀

The $Alts Supercycle begins tomorrow! pic.twitter.com/IaoA2NoIrf

— CryptoBullet (@CryptoBullet1) November 30, 2025

While past performance is not a guarantee, key indicators support cautious optimism:

• Bitcoin dominance is below 60%,
• The global M2 money supply is rising, and historically leads BTC by 10–12 weeks.

The end of QT could inject up to $95 billion per month in liquidity, supporting large-cap cryptocurrencies including Bitcoin, Ethereum, Solana, and BNB.

Gold’s recent all-time highs provide additional correlation, as BTC often lags gold price moves by roughly 12 weeks.

Meanwhile,the Fed’s December 10 FOMC meeting occurs amid unusual conditions:

• A 43-day government shutdown erased two months of CPI data, leaving policymakers without fresh inflation figures.
• CPI currently sits at 3%, above the Fed’s 2% target.
• Treasury Secretary Scott Bessent confirmed the Fed is considering additional rate cuts after October’s 25-bps reduction.

The US federal debt exceeds $36 trillion, with annual interest costs above $1 trillion. The Standing Repo Facility now enables rapid monetization of Treasury collateral, representing a structural shift with long-term market implications.

Some crypto analysts anticipate an immediate rally following QT’s end, while others see a smaller altseason within 2–3 months and a larger market cycle in 2027–2028.

🚨 Fed Liquidity is Here: The Crypto Melt-Up Starts Now 🚨

The Fed is on the verge of ending QT, just like 2019 and that means one thing: Liquidity is coming back.

If you know what this means for #Bitcoin and altcoins, you should be excited.

Here’s why I think this is the…

— VirtualBacon (@virtualbacon) October 28, 2025

Consensus holds that liquidity, rather than hype or Bitcoin halvings, has historically driven crypto cycles.

December 1 marks a critical turning point as the Fed’s liquidity pivot could remove one major obstacle for risk assets. The move could set the stage for crypto markets to respond, whether through a mini rally or the early stages of a broader Supercycle.

While QT ends on December 1, the Fed emphasized that future adjustments to the federal funds rate will depend on incoming data and changing economic risks.

This signals that the Fed is keeping monetary policy flexible, prepared to adjust rates or other measures if necessary.

Investors should watch interest rate guidance, Treasury liquidity operations, and M2 money supply trends in the coming weeks.

The post Tomorrow the Fed Ends QT — Crypto Thinks the Melt-Up Starts Now appeared first on BeInCrypto.

Hedge funds are piling into one of their biggest anti-dollar bets in years, just as macro signals hint the USD may be nearing a rebound.

If the crowded trade snaps, the ripple effects could hit crypto markets faster than investors expect.

Hedge Funds Build Extreme USD Shorts—A Repeatable Pattern?

Hedge funds are aggressively shorting the US dollar, reaching one of the most lopsided positioning levels in two decades.

The Positioning Index indicates that funds are deeply entrenched in “extreme short” territory, a zone that has historically preceded a USD recovery rather than a prolonged decline.

Analyst Guilherme Tavares highlighted this setup, noting that the trade has become dangerously crowded.

“Hedge funds are holding significant short positions in the DXY, and historically, similar levels have often preceded solid buying opportunities—at least for a short-term rebound. When a trade becomes too crowded, it’s usually worth considering the opposite side,” he wrote.

Across the past 20 years, every major episode of heavy USD shorting has ended the same way: a dollar bounce that forces fast-money traders to unwind positions.

Macro Tone Doesn’t Support the Anti-Dollar Hype

A similar warning came from EndGame Macro, who pointed out that extreme short positioning rarely appears in calm markets.

They explained that hedge funds are “shorting a weak dollar,” which historically makes the market more vulnerable to even a small shift in sentiment or liquidity.

According to analysts, the broader environment is not as supportive of ongoing USD weakness as traders assume. Treasury markets are pricing future Fed cuts, growth is slowing, and dollar funding markets are tightening, all conditions that make sudden reversals more likely.

“This setup doesn’t guarantee a major dollar bull run, but it does tell you that the downside is probably limited,” said analyst EndGame Macro.

Why Crypto Should Care: A Rising Dollar Is a Threat

Crypto market analysts continue stressing the direct inverse relationship between the DXY and digital assets.

“Dollar up = bad for crypto. Dollar down = good for crypto. If the dollar keeps grinding higher into 2026… you may have to kiss that beloved bull market goodbye,” analyst As Milk Road warned.

The risk is that if the USD rebounds strongly from these crowded shorts, as history suggests, crypto could face sustained pressure during a period when investors were expecting a multi-year bull cycle.

Technical Signals Now Support a USD Reversal

Market technicians are tracking fresh breakout signals on the US Dollar Index. According to Daan Crypto, the DXY has closed above its 200-day moving average for the first time in nearly nine months, positioning the index to break a 7–8 month downtrend.

“This isn’t ideal for risk assets and has been putting pressure on as well… Good to keep an eye on,” he said.

Combined with the yen’s weakness and general derisking behavior after recent market volatility, technical momentum may now be aligning with positioning data to fuel a potential USD resurgence.

If hedge funds are forced to unwind their extreme short positions, the USD could stage a sharp rebound. This could pressure Bitcoin, Ethereum, and risk assets broadly.

The next few weeks of DXY price action, funding conditions, and Fed communication will determine whether crypto’s bullish narrative survives or enters a more defensive phase.

The post Hedge Funds Are Heavily Shorting the USD – What Does It Mean for Crypto? appeared first on BeInCrypto.

Bitwise Chief Investment Officer Matt Hougan highlights common mispricing in Digital Asset Treasury Companies (DATs). He urges investors to consider valuation beyond simple crypto holdings as these firms navigate complex financial dynamics.

DATs now manage over $130 billion in digital assets, serving as vital links between traditional capital markets and direct cryptocurrency exposure. Their unique position brings new valuation challenges that set them apart from other investment vehicles.

Bitwise Just Revealed 3 Ways to Value DATs: All You Need to Know

Bitwise CIO Matt Hougan warns that most DATs are mispriced. While many trade at a discount to their assets, a few can trade at a premium by boosting crypto-per-share.

Hougan’s framework offers investors a clear way to separate the winners from the laggards.

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”).

Here's how I approach it.

— Matt Hougan (@Matt_Hougan) November 23, 2025

Why Most DATs Trade at a Discount

Hougan highlights three main reasons DATs usually underperform:

• Illiquidity: Investors demand a 5–10% discount if assets aren’t immediately accessible.
• Expenses: Operational costs and executive compensation directly reduce value.

For example, $100 of Bitcoin minus $10 of expenses per share equals a 10% discount.

• Risk: Mistakes, market shifts, or execution errors further lower valuations.

“…most of the reasons they should trade at a discount are certain, and most of the reasons they might trade at a premium are uncertain,” Hougan says.

This means the majority of DATs will underperform relative to their net asset value (mNAV).

How DATs Can Trade at a Premium

Some DATs outperform by increasing crypto-per-share, with Hougan identifying four key strategies:

• Issuing Debt: Borrowing USD to buy crypto can grow per-share holdings if prices rise.
• Lending Crypto: Earning interest compounds the crypto held by the company.
• Using Derivatives: Writing options or similar strategies generates additional assets, though it may limit upside.
• Acquiring Crypto at a Discount: Buying undervalued assets, repurchasing shares, or acquiring cash-flow businesses can increase crypto-per-share efficiently.

The Bitwise executive articulates that scale matters, noting that larger DATs can access debt more easily, lend more crypto, and take advantage of M&A opportunities. Size is a structural advantage.

---

Market Differentiation Is Coming

DATs have historically moved together, but Hougan predicts increased divergence.

• Premium DATs: Executing well, growing crypto-per-share, leveraging scale.
• Discount DATs: Struggling with expenses, risk, or small scale.

Investors can use Hougan’s approach, calculating expenses, risk, and growth potential, to determine fair value.

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Investors should also watch:

• Which DATs consistently increase crypto-per-share.
• How scale gives certain DATs a long-term edge.
• Market moves that create opportunities to buy undervalued DATs.

With the market set for more differentiation, understanding Hougan’s framework could separate winners from losers amid a growing digital asset treasury space.

The post Most Crypto Treasury Firms Trade at a Discount — Here’s Why appeared first on BeInCrypto.

BitMine is intensifying its aggressive accumulation of Ethereum, looking past a 47% collapse in its stock price and billions in unrealized losses.

On November 23, blockchain platform Lookonchain reported that a wallet linked to the corporate giant received 21,537 ETH. The transfer, valued at approximately $60 million, came from institutional prime broker FalconX.

BitMine Doubles Down on Ethereum With Staking Plan

This new purchase would bring BitMine’s total hoard to over 3.5 million ETH, representing nearly 3% of the token’s circulating supply.

Tom Lee(@fundstrat)'s #Bitmine is still buying $ETH.

A new wallet 0x5664 — likely linked to #Bitmine — just received 21,537 $ETH($59.17M) from the #FalconX 8 hours ago.https://t.co/8kg77vYddh pic.twitter.com/FKivNNe0jM

— Lookonchain (@lookonchain) November 23, 2025

The move signals a defiant commitment to its “Strategic ETH Reserve” strategy despite the asset’s recent price struggles.

Indeed, Ethereum is trading near $2,808, down roughly 29% over the past month. Notably, BitMine’s Thomas Lee had attributed ETH’s recent weakness to broader market mechanics rather than fundamental flaws.

According to him, the October 10 “liquidity shock,” which wiped nearly $20 billion in leveraged positions from the crypto market, was the primary driver of the drawdown.

“In 2022, the post-FTX liquidity shock took 8 weeks to clear, but similar to prior drawdowns, crypto prices quickly recovered. History shows crypto prices stage V-shaped recoveries after a lingering and drawn out decline, and we expect this to again be the case in this current drawdown,” He added.

As a result, the downturn has significantly impacted BitMine’s ETH holdings, leaving the firm with an estimated $4 billion in paper losses. This divergence has weighed heavily on BitMine’s stock, which has shed nearly half its value over the past 30 days.

To offset the sting of declining asset prices, BitMine is effectively rebranding itself from a passive ETH holding company to an active yield generator.

On November 21, the firm announced the launch of the “Made in America Validator Network” (MAVAN). The proprietary staking infrastructure is set to go live in early 2026.

Meanwhile, the firm confirmed that it has selected three pilot partners to test its staking operations.

“We plan to partner with one or more of these pilot partners plus world-class infrastructure providers to scale our own “Made in America Validator Network” (MAVAN) over the coming quarter…we believe in building the premier destination for our natively staked Ether and are proud to build with the best partners. At scale, we believe our strategy will best serve the long-term best interests of our shareholders,” Lee stated.

By staking its 3.5 million ETH, BitMine could theoretically generate substantial annual revenue from network rewards. This would create a cash-flow floor that pure holding strategies lack.

Additionally, the firm declared an annual dividend of $0.01 per share, positioning itself as the first large-cap crypto treasury to return capital to investors directly.

The post BitMine Ramps up Ethereum Buying With New $60 Million Purchase appeared first on BeInCrypto.

FG Nexus sold $32.7 million in Ethereum to fund share buybacks after its stock fell 94% in four months, highlighting the deepening net asset value (NAV) crisis among digital asset treasury companies.

The sale follows ETHZilla’s $40 million ETH offload in October, underlining mounting pressures throughout a sector managing over $42.7 billion in cryptocurrency assets. This wave of forced selling underscores vulnerabilities in the corporate crypto treasury model, as companies wrestle with stocks trading below the value of their underlying asset holdings.

Treasury Companies Resort to Asset Sales Amid Stock Collapse

FG Nexus disclosed selling 10,922 ETH in October to support a $200 million share buyback. The company began repurchasing shares after its stock fell steeply below NAV, a measure of per-share underlying crypto value. FG Nexus retained 40,005 ETH and $37 million in cash, with total debt rising to $11.9 million, as of Wednesday.

The firm bought back 3.4 million shares at about $3.45 each, representing 8% of its outstanding shares. Management stressed that shares were purchased at a discount to NAV, which reached $3.94 per share by mid-November. This strategy, however, required roughly $10 million in debt and a liquidation of 21% of ETH reserves compared to September levels.

FG Nexus Sold $32.7M in $ETH: Treasury Companies Are Starting to Sell

🔹 FG Nexus sold $32.7M in ETH (10922 ETH)
🔹 Now holds around 40,005 ETH
🔹 Other DAT companies are also reducing their ETH positions
🔹 $FGNX Stock down -94% in 4 months

Their stock is also down 94% in the… pic.twitter.com/A0hXYQaKk3

— Crypto Patel (@CryptoPatel) November 20, 2025

FG Nexus is one of several digital asset treasury companies pursuing crypto sales. ETHZilla announced an approximate $40 million ETH sale to facilitate stock repurchases in late October. The company bought 600,000 shares for nearly $12 million since October 24, seeking relief from a persistent 30% discount to NAV.

When a DAT company’s shares trade at a discount to the value of its crypto holdings (mNAV below 1.0), shareholders push management to realize that hidden value. The most effective way to do this is through a stock buyback, but securing the funds necessary to repurchase shares requires cash. If the company lacks sufficient cash reserves, it must sell some of its crypto assets to finance the buyback.

The mNAV of Metaplanet, a DAT company that accumulates Bitcoin, dropped to 0.99 before recovering to 1.03. Its shares have lost 70% since their June highs, signaling sector-wide stress. The use of perpetual preferred equity, which blends fixed dividends with crypto exposure, further complicates capital structures already under pressure from current market conditions.

Leveraged Structures Amplify Market Pressure

DAT companies deployed $42.7 billion in crypto during 2025, with $22.6 billion accumulated in Q3 alone. This expansion accelerated as Bitcoin rallied above $126,000 in October, fueling positive feedback loops and rising valuations. However, subsequent reversals exposed weaknesses in capital structures built on leverage and capital market access.

Treasury companies account for only 0.83% of total crypto market capitalization. Their concentration of holdings, however, amplifies their impact during downturns. Leverage via convertible notes, PIPE deals, and perpetual preferred equity increases selling pressure when prices fall or NAV discounts widen.

Market liquidity deteriorated sharply as asset prices dropped. Bitcoin’s order book depth at the 1% band fell from $20 million to $14 million—a 33% decrease that heightens price sensitivity to any selling. Analysts estimate forced treasury company sales could reach $4 billion to $6 billion if 10% to 15% of positions are liquidated, potentially surpassing November’s $2.33 billion in ETF outflows.

Systemic Risks Mount as Buying Halts

Corporate crypto buying has stalled due to waning confidence and reduced capital deployment. Companies that once offered steady demand are now selling, reversing earlier positive cycles. MicroStrategy’s stock fell 60% amid Bitcoin volatility, showing the risk of correlation between crypto prices and equity values even for companies with solid balance sheets.

Smaller treasury firms are under increased stress, especially those holding less liquid assets. Several firms exposed to Solana experienced 40% NAV drawdowns as concentrated bets deepened losses. Limited diversification and thin trading volumes in alternative cryptocurrencies add to broader sector vulnerabilities.

Oof. BitMine is down $3.7 BILLION on its massive $ETH bet.

That's the risk of being a Digital Asset Treasury (DAT) company!

Question: Will we see more firms try this, or is this a flashing red warning for corporate crypto treasuries? $ETH ETFs are looming… pic.twitter.com/emOvzQQQTD

— DrBullZeus (@DrBullZeus) November 20, 2025

Retail investors also contributed to selling by exiting positions in advance, reducing market demand as institutional holders began liquidating. In November, $4 billion in ETF outflows and reduced market-maker activity intensified volatility. These conditions resemble leverage-fueled market crashes seen in other asset classes, such as the 2008 mortgage REIT crisis.

This growing crisis challenges the resilience of the digital asset treasury model in prolonged downturns. Rigorous risk management and regulatory oversight could be necessary to prevent self-reinforcing selloffs from destabilizing the broader market. In the weeks ahead, these companies’ ability to maintain their crypto holdings without further forced liquidation will determine whether the sector survives intact or undergoes fundamental restructuring.

The post DAT Firms Sell Crypto to Save Their Stocks: Is This Sustainable? appeared first on BeInCrypto.