The anticipated crypto market structure bill, or namely the CLARITY Act, designed to provide essential regulatory clarity for digital assets in the United States, is approaching critical dates in the Senate. However, it faces significant complexities related to stablecoin yield, conflicts of interest, and decentralized finance (DeFi).

Senate Divided On Crypto Market Structure Bill

Legal expert and Chief Legal Officer of Variant Jake Chervinsky, reports that the Senate is divided into two committees: Banking, which is handling the securities law aspect, and Agriculture, responsible for the commodities law portion. 

Both committees have published drafts of their work this fall, with the next step being markup, a process where hearings will be held to vote on amendments before sending the bill to the Senate floor for a full vote.

However, both committees are cautious and are unlikely to proceed with markup until they resolve ongoing disputes. Among these, three significant issues stand out.

The first major concern involves stablecoin yield. In the GENIUS Act, banks lobbied for a prohibition on interest payments, meaning stablecoin issuers cannot offer holders any form of interest or yield. 

While the current prohibition prevents direct yield payments to holders, it does not address non-yield rewards or yield provided by third parties. Banks consider this gap a “loophole” and are advocating for broader restrictions to be included in the market structure bill. 

Conflicts Of Interest And DeFi Regulations Stall Progress

The second issue revolves around conflicts of interest. Some Democratic senators have indicated they would not support the market structure legislation unless it includes provisions that restrict the President’s family from conducting business in the crypto space. 

The third and perhaps most crucial issue pertains to DeFi. It is important to note that market structure legislation primarily addresses centralized platforms that exercise custody over user funds and transactions. 

Chervinsky believes the bill should primarily focus on protecting DeFi, but traditional finance (TradFi) stakeholders have been pushing Congress to categorize virtually all entities in the crypto sector—developers, validators, and others—as intermediaries. 

The expert emphasized that the success of any market structure bill hinges on ensuring robust protections for developers since the viability of the crypto industry relies on their contributions. 

Given the intricate nature of these issues and the swiftly approaching holiday break, Chervinsky noted that it is possible that discussions about market structure could extend into January. 

Senate Markup Set For December 17-18

Market analyst MartyParty provided another update on December 4, indicating that the bipartisan Digital Asset Market Structure Bill is gaining significant momentum in Congress, with a markup session in the Senate Banking Committee tentatively scheduled for December 17-18, just before the holiday recess

If successfully passed, he states that the bill could establish clearer pathways for tokenized real-world assets (RWAs) and mitigate “debanking” risks, paving the way for compliant exchanges and potentially stimulating market volumes following the Commodity Futures Trading Commission (CFTC) approvals for spot crypto trading. 

This “regulatory convergence” is seen as a catalyst that could drive liquidity and energize the next bull market, reinforcing President Trump’s vision for the US to emerge as the “crypto capital of the world.”

Featured image from DALL-E, chart from TradingView.com 

Despite the Bitcoin price recovery above the crucial $90,000 threshold—a level that has historically served as a supportive floor for the cryptocurrency—the market is exhibiting signs that a further correction may be imminent. 

Bitcoin Price Recovery At Risk?

Market expert Rekt Fencer recently shared insights on social media platform X, formerly known as Twitter, suggesting that the Bitcoin price might be forming what he calls a “massive bull trap.” 

This term refers to a deceptive bullish signal in which the price briefly surpasses a resistance level, in this case, the $90,000 mark, only to reverse into a decline. Such movements can entrap investors who bought in during the peak, leading to significant losses.

Fencer pointed out a troubling pattern reminiscent of early 2022 when Bitcoin reclaimed its 50-week moving average (MA)—currently positioned above $102,300—before experiencing a severe decline of roughly 60%, plummeting below $20,000 by June of that year. 

He indicated that the recent price recovery following major drops to $84,000 should not be interpreted as a signal of near-term success, especially since the Bitcoin price is currently trading under the 50-week MA.

If historical trends repeat, this could mean that Bitcoin might see a significant drop, potentially reaching around $36,200, which could potentially represent the low point of the bearish cycle for the cryptocurrency. On the other hand, there are analysts who retain a bullish outlook. 

BTC Bottom In Sight? 

Market researcher and analyst Miles Deutscher expressed a confident sentiment, stating he believes there is a 91.5% likelihood that the Bitcoin price has hit its bottom, based on his analysis of key developments. 

He noted that recent weeks have been dominated by negative news stories, including concerns surrounding Tether (USDT) and the implications of China’s actions on crypto, which he asserts often mark local price bottoms.

Moreover, Deutscher pointed out a shift in market flows from predominantly bearish to bullish. He explained that the trading environment has recently seen a resurgence in buying momentum, with large investors, or “OG whales,” ceasing their selling. This change has been reflected in the order books, indicating a possible stabilization in market sentiment.

Additionally, the liquidity landscape appears to be shifting, with market conditions tightening in recent months. The potential appointment of a new Federal Reserve chair known for dovish policies, coupled with the official end of quantitative tightening (QT), could further influence market dynamics in favor of buyers.

Deutscher concluded by emphasizing that given the extreme levels of fear, uncertainty, and doubt (FUD) in the market, combined with improvements in trading flows, he believes that the odds favor the notion that the Bitcoin price has indeed reached its bottom.

Featured image from DALL-E, chart from TradingView.com 

A new player has emerged in the world of cryptocurrency banking, with a team of former executives from the collapsed Signature Bank at the helm. The establishment of N3XT comes nearly three years after Signature Bank’s downfall in March 2023, which significantly impacted the crypto industry.

Former Signature Bank Leaders Establish N3XT

According to a report by Reuters, the newly founded blockchain-based bank aims to facilitate instant US dollar payments around the clock, led by Scott Shay, who served as the founder and chairman of the Signature Bank. Jeffrey Wallis, the former director of digital assets at Signature, will take on the role of CEO at N3XT.

Per the report, N3XT will operate under a special-purpose bank charter in Wyoming and has decided to avoid typical lending activities, which were at the heart of the collapsed Signature Bank. 

“Every dollar of deposits will be backed by cash or short-term U.S. Treasuries,” Wallis explained, noting that the bank will publish its reserve holdings daily. 

This sets N3XT apart from its predecessor, Signature Bank, especially given that its reserves will be held with custodial partners, though Wallis did not disclose their names. 

Importantly, N3XT will not be insured by the Federal Deposit Insurance Corporation (FDIC) since Wyoming special-purpose banks are not required to obtain such insurance.

The collapse of Signature Bank, along with the failures of Silvergate Bank and Silicon Valley Bank, pointed to a troubling trend among banks with significant uninsured deposits and ties to the cryptocurrency sector. Rising interest rates and a loss of depositor confidence culminated in bank runs that led to their downfall.

Solutions For Crypto Clients 

Addressing concerns about the safety of client assets, Wallis reassured potential customers in the crypto industry, stating, “We do not lend against our balance sheet, so clients always have confidence that their capital is available to them and is never at risk.” 

He emphasized that the newly established  bank is designed to offer a new and “unique banking structure,” ensuring that clients’ liquidity is readily accessible according to their economic needs.

Wallis further distinguished N3XT’s approach to risk management from that of Signature Bank, which was criticized for “poor management” and a focus on “rapid, unrestrained growth” with little attention to risk. 

“We are not making any lending decisions with the balance sheet,” Wallis reiterated. “We are keeping our clients’ assets in full liquid form.” N3XT will reportedly focus on catering to crypto clients, many of whom Wallis mentioned are already in the onboarding process.

As of this writing, Bitcoin (BTC), the market’s leading crypto, is trading at $92,834. It has consolidated above the key $90,000 support level for the past few days, sparking new hopes for a potential recovery above $100,000 by the end of the year. 

Featured image from DALL-E, chart from TradingView.com 

Recent bullish predictions for the XRP price have emerged, hinting at a potential for new all-time highs (ATHs) by March 2026 for one of the market’s leading altcoins.

XRP Price Projected To Reach New ATH By Q1 2026

According to projections from ChatGPT, XRP could reach approximately $4.40 by the first quarter of 2026, a notable increase of 120% from current levels around $2.

In contrast to the AI forecast, some analysts believe that the XRP price has the potential for a stronger rally. They suggest that structural changes could allow XRP to exceed $5 and potentially approach $6 by 2026. 

Several factors support their optimistic view. For instance, key aspects of the US Securities and Exchange Commission’s (SEC) case against Ripple were resolved earlier this year, which they believe could encourage banks and payment providers to adopt XRP for cross-border transactions, fostering greater confidence in its utility.

Additionally, Ripple’s ecosystem is expanding well beyond XRP. In December 2024, the company launched a dollar-pegged stablecoin known as RLUSD, which has already achieved a market cap exceeding $1 billion. 

While RLUSD itself may not directly boost XRP’s price, it has the potential to attract more participants to Ripple’s network, thereby creating secondary demand for XRP as a bridging asset. 

Analysts posit that a steady pipeline of RLUSD adoption could enhance Ripple’s revenue growth, consequently driving the XRP price higher.

$2.60 Key For Momentum Shift

Moreover, analysts point to the upcoming Bitcoin (BTC) Halving, expected in 2028, as a potential catalyst for a broad crypto market rally. The analysts assert that the XRP price has historically benefited from such cycles.

From a technical standpoint, chart analysts see XRP setting up for a potential breakout. Price action has formed a base around the low $2 range, which could lay the groundwork for further recovery. 

According to the analysts, if bullish momentum can push the token above significant resistance levels around $2.60, it could change momentum indicators to a positive stance. Moreover, a sustained rally into the mid-$3 territory might then pave the way for XRP to reach the $4 to $5 range.

When writing, the XRP price stands at $2.14, recording a 1.6% drop in the past 24 hours. 

Featured image from DALL-E, chart from TradingView.com 

The US Commodity Futures Trading Commission (CFTC) announced on Thursday that spot crypto asset contracts will soon be available for trading on futures exchanges that are registered with the agency, aligning with the positive regulatory changes championed by President Donald Trump’s administration. 

Crypto Sprint Progress

The CFTC disclosed that this recent decision follows recommendations from the President’s Working Group on Digital Asset Markets and insights gathered from the CFTC’s Crypto Sprint initiative, as well as collaborative efforts with the Securities and Exchange Commission (SEC). 

Acting CFTC Chairman Caroline Pham highlighted the importance of providing Americans with access to safe and regulated markets, stating, “Recent events on offshore exchanges have shown us how essential it is for Americans to have more choice and access to safe, regulated US markets.”

In addition to the introduction of spot trading, the Crypto Sprint initiative includes measures to enable tokenized collateral—such as stablecoins—within derivatives markets. 

The CFTC also plans to implement regulatory updates to facilitate the use of blockchain technology in various operational areas, including collateral, margin, clearing, settlement, reporting, and recordkeeping.

Historic Shift In CFTC’s Digital Asset Trading Move

Market expert MartyParty on social media stated that this latest move is an historic decision that will empower retail and institutional traders to buy, sell, and leverage crypto assets directly on CFTC-registered exchanges. MartyParty further noted:

It’s the culmination of years of regulatory groundwork, including a joint SEC-CFTC statement clarifying that existing laws already permit such trading on registered venues.

Pham remarked on the collaborative efforts of the administration, stating that President Trump’s leadership has fostered a comprehensive plan for the US to reclaim its status as a global leader in digital asset markets. As she noted, “The CFTC has a central role to play” in this initiative.

Featured image from DALL-E, chart from TradingView.com 

Bitcoin (BTC) has continued its relief rally since the start of the week, successfully reclaiming the significant $93,000 mark on Wednesday afternoon. This uptick in the cryptocurrency’s price has sparked mixed sentiments among experts regarding its future direction.

Analysts Warn Of Resistance Ahead For Bitcoin

IG analyst Chris Beauchamp highlighted the cautious optimism among Bitcoin enthusiasts, who are wary after witnessing numerous false recoveries in recent months. He noted that there appears to be a shift in risk appetite within the stock market, which is gradually spilling over into the cryptocurrency space. 

However, he pointed out that while last week’s bounce faltered at the $93,000 level, the recent climb above this threshold on Wednesday instills a sense of hope for a more sustained upward movement.

Despite this positivity, analysts warn that more resistance levels are likely to emerge as Bitcoin rallies. Jeff deGraaf from Renaissance Macro Research outlined two significant resistance points to watch: the psychological $100,000 threshold and the $107,000 mark, both amplified by descending moving averages. 

Adding another layer to the Bitcoin discourse, market analyst CryptoBullet has suggested that the Bitcoin cycle top may already be in place, reached last month above $126,000. 

Will Altcoins Bounce Back?

In a social media post, CryptoBullet pointed out that the performance of altcoins, measured against Bitcoin, indicates a bottoming out. This scenario, while concerning, is not unprecedented. 

CryptoBullet recalled a similar situation in September 2019 when Bitcoin was consolidating about 30% below its top following an intense seven-month rally after a bear market low. At that time, altcoins also reached their cycle low.

In the current context, Bitcoin’s rally has lasted significantly longer—35 months compared to the previous seven-month span. Additionally, altcoins have been on a downward trajectory for over four years, effectively more than doubling the duration of their last bear market. 

Looking ahead, CryptoBullet anticipates a challenging correction for Bitcoin in 2026, suggesting a bear market could be on the horizon. In the next two to three months, he predicts a potential bounce for altcoins, signaling a liquidity rotation and possibly a “mini altseason” during what he terms a “Dead Cat Bounce” for Bitcoin. 

This mirrors the events of 2019-2020, when altcoins experienced a relief rally while Bitcoin was on a downward trend. CryptoBullet indicates that a significant altseason is expected in the next cycle, projected for 2027-2029.

At the time of writing, the price of BTC is trading just above $93,000, marking gains of 2% and 3% in the 24-hour and seven-day time frames, respectively. 

Featured image from DALL-E, chart from TradingView.com 

The United Kingdom (UK) has reached a significant milestone in its approach to digital assets with the recent passage of the Property Act 2025, which now officially categorizes cryptocurrencies as legal property. 

UK’s New Law Sets Criteria For Digital Assets

The creation of this dedicated legal category for digital assets followed recommendations from the Law Commission, which advocated for a framework that acknowledges assets not fitting traditional definitions of personal property.

This legal evolution is seen as part of a broader strategy to position the UK as a leading digital finance hub, responding to experts’ calls for the country to align its regulatory environment with that of the United States in order to promote growth in the digital asset market. 

According to law firm Clyde & Co, a key provision in the law states that “a thing (including a thing that is digital or electronic in nature) is not prevented from being the object of personal property rights merely because it is neither (a) a thing in possession, nor (b) a thing in action.” 

This phrase confirms that digital assets can now be recognized as a third category of personal property, distinct from the traditional classifications of tangible and intangible assets.

However, the Act does not guarantee that any specific type of asset qualifies as personal property; rather, it aims to “unlock” the common law’s ability to adapt to technological advancements and new asset types, as outlined in the Explanatory Notes from Parliament. 

The interpretation of existing digital assets—such as cryptocurrencies and non-fungible tokens (NFTs)—as well as any emerging forms will ultimately depend on future court rulings. 

The law firm also noted that, under this new law, a digital asset must meet certain criteria to qualify as personal property: it must be definable and identifiable by third parties and capable of being assumed by them, as well as possess a degree of permanence.

Additionally, digital assets will be included in bankruptcy and insolvency proceedings, allowing them to be treated as part of the overall asset pool available to creditors and heirs. 

Government Moves To Ban Crypto Donations

While momentum continues for digital asset recognition, the UK government is also addressing concerns surrounding cryptocurrency in the political sphere. 

Ministers are reportedly working on legislation aimed at banning political donations made through digital currencies, although this crackdown may not be ready in time for the upcoming elections bill in the new year. 

Officials have raised alarms that cryptocurrency donations pose risks to the integrity of the electoral process, primarily due to their difficult-to-trace nature, which could open the door to exploitation by foreign entities or criminal organizations.

At the time of writing, the market’s leading cryptocurrency, Bitcoin, was trading at $92,180, surging 4% in the past 24 hours. 

Featured image from Shutterstock, chart from TradingView.com 

Concerns regarding the potential exclusion of Strategy (MSTR) from the MSCI index emerged last week, with estimates from JPMorgan analysts indicating that such a move could result in approximately $2 billion to $8 billion in outflows.

Amid mounting concerns within the crypto community, Michael Saylor confirmed that the company is in discussions with MSCI regarding its potential exclusion from the provider’s indices. 

Michael Saylor Weighs In On Exclusion Concerns

MSCI has stated that by January 15, it will decide whether to remove companies whose business models focus on purchasing cryptocurrencies, amid concerns that these firms resemble investment funds, which are currently ineligible for index inclusion.

Reuters reported that Saylor acknowledged the discussions with MSCI but expressed skepticism regarding JPMorgan’s projections of potential outflows. He commented, “It won’t make any difference, in my opinion,” regarding the implications of a possible exclusion. 

Saylor noted that the equity associated with Strategy is inherently volatile due to its significant reliance on Bitcoin’s (BTC) price. He cautioned, “If Bitcoin falls 30% or 40%, then the equity is going to fall more, because the equity is built to fall.” 

Currently, Strategy operates with a leverage ratio of 1.11, and Saylor indicated that the company could withstand a steep decline of 95% in Bitcoin prices.

Reports from NewsBTC indicated that Saylor Strategy’s position emphasizing that it is not merely a passive Bitcoin holding entity. Instead, he highlighted that the company functions as a software firm with a proactive financial strategy, countering the narrative surrounding MSCI’s concerns.

Strategy Establishes New USD Reserve 

The recent fluctuations in Bitcoin prices have reignited fears of a potential bear market, raising questions about whether Strategy would consider selling some of its substantial Bitcoin reserves, currently exceeding 650,000 coins. 

This speculation intensified after Strategy CEO Phong Le addressed the possibility of selling some holdings during an interview on the “What Bitcoin Did” podcast. 

Le stated that if the company’s stock trades below the value of its Bitcoin holdings and it is unable to raise additional capital for preferred dividends, a sale might become unavoidable. 

“If the stock trades below the value of our Bitcoin, then mathematically we would have to sell some Bitcoin. It would be the last resort,” he explained.

To support this vision, the Virginia-based company recently announced the establishment of a $1.44 billion reserve fund allocated for dividend payments on preferred stock and to meet its debt obligations.

The newly created reserve is funded through proceeds from its at-the-market stock offering. The company aims to maintain a balance sufficient to cover at least 12 months of dividends, with ambitions to extend this coverage to 24 months or more in the future. 

Saylor remarked, “Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution. We believe it will better position us to navigate short-term market volatility while delivering on our vision of being the world’s leading issuer of Digital Credit.”

At the time of writing, Bitcoin was trading just above $93,000, marking a 4.5% increase over the past 24 hours. MSTR, the stock of the investment firm Strategy, traded up 2% in the premarket. 

Featured image from Bloomberg, chart from TradingView.com 

Leading banking institutions in traditional finance (TradFi) are reportedly partnering with US-based cryptocurrency exchange Coinbase (COIN) to explore pilots related to stablecoins, custody solutions, and trading options. 

Coinbase CEO Brian Armstrong announced this during his appearance at the New York Times Dealbook Summit on Wednesday, as reported by Bloomberg.

Coinbase CEO Cautions Banks On Crypto Resistance

Armstrong emphasized that leading financial institutions recognize this as an opportunity for growth. “The best banks are leaning into this as an opportunity,” he stated, although he refrained from naming any specific banks involved in these initiatives. 

During his speech, the executive also voiced his concerns about institutions that resist participating in the digital asset ecosystem. He asserted that those who oppose it will be left behind.

This sentiment aligns with remarks Armstrong made six months ago, where he predicted that eventually, every major bank would integrate cryptocurrency into their operations. 

He views this technology as a means to modernize the financial system, stating, “We can power a variety of things for them.” He noted that some banks are looking for custodial solutions, while others are interested in developing their own stablecoins.

COIN Shares Surge 5%

Adding weight to this discussion, Larry Fink, CEO of the world’s largest asset manager and crypto exchange-traded fund (ETF) issuer BlackRock, participated in the event alongside Armstrong. 

Fink, who previously voiced skepticism about cryptocurrencies, described Bitcoin (BTC) as a safe haven asset despite the cryptocurrency’s crash toward $83,000 on Monday. 

“You own Bitcoin because you’re frightened of your physical security. You own it because you’re frightened of your financial security,” he remarked. 

On the financial side, Coinbase’s stock performance reflects the positive sentiment in the cryptocurrency market amid recovering prices. Trading under the ticker COIN on the Nasdaq, Coinbase’s shares closed Wednesday at nearly $277, marking a 5% increase. 

This uplift coincides with broader gains in the cryptocurrency sector, notably led by the recent price performance of Ethereum (ETH), followed by Bitcoin, XRP, Binance Coin (BNB), and other notable tokens such as Solana (SOL), all of which have shown significant recoveries this week after a challenging month.

Featured image from Shutterstock, chart from TradingView.com

The highly anticipated Fusaka Upgrade for Ethereum is on the verge of going live on Wednesday, heralding significant enhancements to the network’s overall functionality. 

Analysts contend that this pivotal development could usher in a considerable supply crunch for ETH, potentially boosting its price during a challenging period for the broader cryptocurrency market.

Layer 2 Solutions To Boost ETH Burn

According to analysts at Bull Theory, the Fusaka Upgrade integrates components from previous upgrades—Osaka, Fulu, and PeerDAS—but its most impactful feature is its resolution of one of Ethereum’s biggest challenges. 

Layers 2 (L2) solutions have long utilized Ethereum’s security while contributing minimal fees back to the network. Despite L2 solutions like Base, Arbitrum, Optimism, and zkSync generating millions in fees from users, the fees recorded on Ethereum tended to diminish to nearly zero when they posted their data. 

Consequently, this meant that significant L2 activity did not result in substantial ETH being burned, even though approximately 85% of Ethereum transactions now occur on these Layer 2 solutions.

The Fusaka Upgrade fundamentally changes this dynamic. A key enhancement is EIP-7918, which mandates that Layer 2 transactions pay real fees to Ethereum. 

This adjustment ensures that every L2 transaction will contribute directly to the burning of ETH—something that was not previously guaranteed. The analysts assert that this feature represents one of the most significant value shifts since the introduction of EIP-1559.

Post-Fusaka Projections

The upgrade is further expected to broaden the scope of ETH burn from being predominantly derived from Layer 1 (L1) transactions to encompassing all L2 activity. 

Historically, most ETH burn has originated from mainnet transactions; thus, the network saw slight inflation in 2024–2025 as Layer 2s made transactions cheaper, leading to a decrease in ETH burn while staking continued to issue new ETH. 

Post-Fusaka, every L2 blob will incur a minimum cost, which will be burned. As Layer 2 adoption increases, the rate at which ETH is burned will also rise, contributing to increased scarcity of ETH.

This enhancement positions Ethereum to shift back towards deflation for the first time in several years. Currently, ETH issues around 620,000 new tokens annually for stakers while burning approximately 350,000 tokens. This results in a net slight inflation. 

However, projections following the Fusaka Upgrade, even with conservative estimates, suggest that the additional burn from L2 activity could range from 200,000 to 400,000 ETH per year. 

Combined with existing burn rates, this could bring the total to over 600,000 ETH, leading to a net neutral or slightly deflationary state for ETH. 

More bullish models predict that if L2 adoption flourishes and demand for blobs rises, burn rates could soar to between 900,000 and 1.2 million ETH annually, resulting in a supply decrease of 200,000 to 300,000 ETH each year. 

Monetary Transformation For Ethereum?

Another notable aspect of the Fusaka upgrade is PeerDAS, which enhances Layer 2 growth by reducing bandwidth requirements by 85%. This efficiency allows L2 solutions to publish more blobs at lower costs, resulting in increased fees and, consequently, more ETH burned.

The upgrade also increases the block gas limit from 36 million to 60 million, allowing more transactions to fit within each block. This increase means that more transactions can occur, leading to higher fees collected and a corresponding rise in burning. 

Furthermore, lower fees for transactions—such as swaps, bridges, on-chain gaming, and social applications—will likely drive more usage, resulting in increased transactions and higher ETH burn.

Ultimately, the analysts believe that the Fusaka Upgrade represents a significant monetary transformation for Ethereum, indicating that the network is not only scaling but also beginning to monetize that scaling effectively.

Featured image from DALL-E, chart from TradingView.com

Despite a 9% recovery on Tuesday, Bitcoin (BTC) has experienced considerable volatility, with its price plummeting to as low as $84,000 just 24 hours ago. This downturn has had a significant impact on Strategy (previously MicroStrategy) the public company that holds the largest BTC reserves, currently boasting over 650,000 coins.

Strategy T-Rex ETFs Plummet Nearly 85%

NewsBTC reported that the company’s CEO, Phong Le, suggested the possibility of selling some of their Bitcoin holdings in light of the current market conditions. 

Alongside this, the company’s leveraged exchange-traded funds (ETFs) have also faced substantial losses, intensifying worries about Strategy’s financial health.

Reuters highlighted that Strategy’s leveraged ETFs, which are designed to magnify returns on the firm’s stock, have been among the largest casualties of this year’s cryptocurrency slump. 

Two specific ETFs, the T-Rex 2X Long MSTR Daily Target ETF and the Defiance Daily Target 2x Long MSTR ETF, have seen dramatic declines, losing nearly 85% of their value this year. 

Additionally, the T-Rex 2X Inverse MSTR Daily Target ETF has dropped by 48% in the same time frame. In this environment, shares of Strategy, MSTR, have fallen more than 40% this year, driven primarily by Bitcoin’s price crash. 

Investor attention is now focused on Strategy’s “mNAV” (market net asset value) metric, which compares the company’s enterprise value to its Bitcoin holdings. 

Following Le’s comments, where he mentioned the firm might consider selling cryptocurrencies if the mNAV drops below 1, concerns grew about the firm’s long-term outlook. Current estimates place this ratio around 1.1, according to calculations by Reuters.

Analysts Remain Optimistic

Mike O’Rourke, the chief market strategist at JonesTrading, noted that Le’s remarks diminish the company’s message of steadfastness in holding Bitcoin, even amid market volatility. 

The company has also revised its full-year outlook, warning of a potential profit ranging from $6.3 billion to a loss of $5.5 billion, a stark adjustment from its earlier forecast of $24 billion in net profit. This prior estimate, made on October 30, anticipated Bitcoin reaching $150,000 by year-end.

Commenting on the shifting strategies within the firm, Vincenzo Vedda, chief investment officer at DWS, remarked, “Great strategy from Strategy, while prices go up. When they go down, well, the strategic options left to the company are limited.”

Since entering the Nasdaq 100 index, Strategy’s shares have dropped more than 70% from their peak in November 2024, more than halving in value over the year. 

Despite this dismal performance, analyst sentiments remain relatively optimistic; of the 16 brokerages monitoring Strategy, 10 recommend it as a “buy” while four suggest a “strong buy,” with an overall median price target of $485, reflecting a potential 183% increase over the next year based on LSEG data.

When writing, the market’s leading cryptocurrency, Bitcoin, managed to recover the $92,000 line.

Featured image from DALL-E, chart from TradingView.com 

Throughout the year, the crypto industry has undergone significant regulatory changes influenced by President Trump’s new policies, alongside a coalition of senators advocating for the adoption and growth of digital assets. 

However, tensions escalated when a group of Democratic senators began to challenge Trump’s policies, claiming that they reflect a significant conflict of interest, but this time, particularly concerning David Sacks, the White House’s AI and Crypto Czar.

White House Crypto Czar Denies Conflicts Of Interest

In a recent statement on social media site X (formerly Twitter), Sacks shared that five months ago, several reporters from The New York Times were assigned to investigate supposed conflicts of interest linked to his role. 

He described how the investigation persisted through numerous “fact checks,” during which they scrutinized various accusations against him. Despite presenting thorough rebuttals, Sacks noted that the published article only included fragments of their responses, while the foundation of the accusations remained largely speculative.

According to the White House’s Crypto Czar, the allegations ranged from a “fabricated dinner” with a notable tech CEO to unfounded claims of promising access to the President and exerting influence over defense contracts. He argued that each time an accusation was disproven, the Times simply shifted to another claim. 

Sacks expressed frustration that, in their pursuit of a “sensational story,” The New York Times overlooked the fact that he has no genuine conflicts of interest to uncover. He described the final article as a “nothing burger,” asserting that it merely pieced together anecdotes that do not substantiate its headline. 

To counter what he deemed a misrepresentation of the facts, Sacks ultimately hired a law firm specializing in defamation law, to assist in addressing these allegations. 

New Bills Could Dismantle Century-Old Banking Practices

Market expert Jack Sage later weighed in on these developments via social media, asserting that US bankers, including JPMorgan, are waging “TOTAL WAR” on Bitcoin. 

Sage pointed out several targets of this new onslaught, including Strategy (previously MicroStrategy), along with key figures such as Strike CEO Jack Mallers, and stablecoin issuer Tether (USDT). 

He indicated that David Sacks is now in the line of fire, characterizing this as a coordinated attack aimed at diminishing a crypto-friendly influence within Trump’s administration.

Sage suggested that the Trump administration seeks to leverage Bitcoin and stablecoins to challenge the banks’ “longstanding monopoly” over the money supply. 

He pointed to potential legislative initiatives such as the GENIUS Act, the upcoming CLARITY Act, and possibly the BITCOIN Act as transformative measures that could shift money creation away from traditional banks and the Federal Reserve (Fed).

These proposed bills, according to Sage, could dismantle the fractional reserve banking system that has existed for over a century. The response from traditional bankers and globalists, Sage noted, has been one of desperation as they confront a reality where they may lose control over monetary systems for the first time.

Featured image from DALL-E, chart from TradingView.com 

In a recent report, Republicans on the House Financial Services Committee unveiled alarming findings related to Operation Chokepoint 2.0, revealing that at least 30 crypto firms have been debanked over the past years. 

The investigation, which began in the 118th Congress, sought to uncover coordinated efforts by the Biden Administration to hinder digital asset businesses and individuals from accessing essential financial services.

Biden Administration’s Actions Against Crypto

The report details how regulators under the Biden Administration employed “vague rules” and excessive discretion to discourage banks from serving clients in the digital asset space. 

The Republicans further asserted that these regulators pressured financial institutions to distance themselves from digital asset clients through informal guidance, enforcement actions, and a lack of clear regulations, removing them from the financial system.

Chairman Hill commented on the implications of this approach, stating, “Targeting Americans over their political views erodes trust in the financial system and undermines the core freedoms our nation was founded on.” 

However, Hill voiced confidence in repairing the damage done by the Biden administration, citing the current era of advancement for digital assets under President Trump, who has already signed one crypto bill—the GENIUS Act—and may soon sign the CLARITY Act.

The report also highlighted that “informal communications,” such as interagency statements and interpretive letters, have specifically been used to discourage banks and other financial entities from working with digital asset firms.

Regulatory Bodies Criticized For Inaction

Key points raised in the report by Republicans include a failure by the Biden Administration to create a clear crypto regulatory regime, which has enabled federal financial regulators to effectively stifle innovation and limit activity within the sector. 

Rather than fostering a supportive environment for digital asset projects, Republicans claim that the administration’s approach leaned toward enforcement-based regulation, which further complicated matters for crypto firms. 

The report underscored the characterization of the digital asset ecosystem by the Biden Administration as prone to volatility and risk, particularly citing concerns over compliance with anti-money laundering (AML). However, Republicans argued that these concerns do not justify the aggressive tactics employed against the industry.

The report also highlighted the roles of key regulators such as the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC). 

These entities, according to the report, failed to establish a coherent regulatory framework for digital assets and have resorted to enforcement actions against companies engaged in this market.

Subcommittee Chair Meuser remarked, “This report documents how Obama-era practices were revived and expanded under President Biden—through pause letters, informal pressure campaigns, and regulation by enforcement that forced U.S. companies offshore.” 

He called attention to the leadership of individuals like President Trump, Secretary Bessent, Vice Chair Bowman, Comptroller Gould, and Acting Chair Hill, who are credited with restoring fairness and clarity in bank supervision. 

While the industry has seen major shifts under President Trump’s administration, Meuser stressed the need for Congress to codify protections against similar actions in the future, to prevent any resurgence of Operation Chokepoint.

Featured image from DALL-E, chart from TradingView.com 

After a brief period of consolidation and a bullish uptick to around $93,000 at the end of last week, the Bitcoin price has once again dipped toward the $85,000 mark, recording a significant 7% drop on Monday, according to data from CoinGecko. 

Market expert Shanaka Anslem has pointed to what he refers to as “the weapon” behind this latest crash: Japanese government bonds. 

Expert Warns Of Unraveling Yen Carry Trade

In a post on social media platform X (formerly Twitter), the expert highlighted that the yield on Japan’s 10-year bonds reached 1.877 percent on December 1, 2025—the highest level since June 2008—while the 2-year yield hit 1 percent, a benchmark not seen since before the collapse of Lehman Brothers.

He explained that these rising yields have triggered a significant unwinding of what Anslem describes as the largest arbitrage trade in history: the Yen Carry Trade. 

With estimates placing the total size of this trade at around $3.4 trillion and figures nearing $20 trillion, he noted that this allowed global investors to borrow Japanese yen at minimal costs to buy a variety of assets, including stocks, US Treasuries, and cryptocurrencies like Bitcoin. However, this era appears to have ended last month.

The mechanics of this situation are straightforward but impactful, Anslem asserted. As yields rise, the yen strengthens, making leveraged positions increasingly unprofitable. 

He suggested that this leads to a chain reaction: selling triggers margin calls, which in turn causes further liquidations. On October 10, $19 billion in crypto positions were liquidated, marking the largest single-day wipeout in crypto history.

By November, Bitcoin exchange-traded funds (ETFs) saw $3.45 billion exit the market, with BlackRock’s IBIT suffering a $2.34 billion loss. On December 1 alone, an additional $646 million was liquidated before lunchtime.

Will The Bitcoin Price Plunge To $75,000?

This decline has occurred alongside the Bitcoin price correlations with major stock indices, showing a 46% correlation with the Nasdaq and a 42% correlation with the S&P 500. 

Anslem noted in his analysis that what was once perceived as an “uncorrelated hedge” has now transformed into a leveraged indicator of global liquidity conditions.

Interestingly, despite the Bitcoin price collapse, whale investors accumulated 375,000 BTC during this period. Moreover, miners significantly cut back their selling, reducing monthly sales from 23,000 BTC to just 3,672. 

As the market looks ahead, the expert asserted that a pivotal moment approaches on December 18 with the Bank of Japan’s upcoming policy decision. 

Anslem concluded that if the bank opts to raise rates and signal further increases, the Bitcoin price could test the $75,000 level, which would represent an additional 11% drop for the market’s leading cryptocurrency from current trading levels. 

Featured image from DALL-E, chart from TradingView.com 

In a turbulent market marked by falling prices, Bitcoin (BTC) has once again dipped below the $85,000 threshold, driven by growing speculation that Strategy, formerly known as MicroStrategy, may be on the verge of selling some of its Bitcoin holdings. 

This intensified after a recent interview on the What Bitcoin Did podcast, during which Strategy CEO Phong Le was directly asked whether the company would consider parting with any of its BTC holdings. 

While the firm’s former CEO, Michael Saylor, has consistently maintained a resolute stance against selling, Le’s comments have raised concerns about potential sales in the future.

Is A Bitcoin Sell-Off Imminent? 

Le indicated that if Strategy’s stock trades below the actual value of its Bitcoin holdings and the company is unable to raise additional capital for preferred dividends, selling some Bitcoin could become a necessity. 

“If the stock trades below the value of our Bitcoin… then mathematically we would have to sell some Bitcoin. It would be the last resort,” he explained. 

While this does not confirm an imminent sale, it visibly places the option on the table, leading to increased speculation about a forced sale as preferred dividend payments approach due on December 31.

Adding to the unease, Strategy disclosed in a recent filing with the US Securities and Exchange Commission (SEC) that it has established a USD Reserve of $1.44 billion to cover these upcoming preferred dividends and mitigate the interest on its substantial debt. 

This reserve was funded through the proceeds from sales of its class A common stock under the company’s at-the-market offering program. Such moves have diluted current shareholders and contributed to a nearly 11% drop in Strategy’s stock price.

Strategy Downgrades BTC Price Forecast

This shift contrasts sharply with the company’s previous forecasts, which predicted that Bitcoin would soar to $150,000 by the end of the year. Strategy has now revised its expectations, projecting prices to range between $85,000 and $110,000. 

The forecast for BTC yields has also been revised down to 24% from a previous estimate of 30%, along with projected Bitcoin gains decreasing significantly from $20 billion to $10.6 billion at the midpoint.

As Bitcoin’s value continues to plummet, it further unravels Strategy’s financial outlook. Nevertheless, social media experts have pointed to a paradox within the company’s messaging. 

AlejandroXBT noted that while Saylor has consistently stated he will never sell Bitcoin, he has been conducting private presentations to clients outlining various strategic approaches, suggesting a potential disconnect between public declarations and private planning.

When writing, the market’s leading cryptocurrency trades at $84,880, recording major losses of over 7% in the 24-hour time frame. 

Featured image from DALL-E, chart from TradingView.com 

One of the world’s largest asset managers, Vanguard Group, once skeptical about providing investors with access to the crypto market, has decided to allow trading of exchange-traded funds (ETFs) and mutual funds consisting primarily of digital assets on its platform. 

Vanguard Responds To Crypto Demand

Bloomberg reported on Monday that beginning on December 2, investors will have the opportunity to trade crypto-focused ETFs and mutual funds holding select cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL). 

Vanguard’s move appears to be driven by continuous interest in cryptocurrency investment, particularly in light of President Donald Trump’s stance on digital assets, which marks a significant shift from the previous administration. 

The firm’s new policy will open access to over 50 million brokerage customers, who collectively manage more than $11 trillion in assets, allowing them to engage with regulated cryptocurrency investment products. 

Andrew Kadjeski, Vanguard’s head of brokerage and investments, remarked, “Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity.” 

He emphasized that the administrative systems established for managing such funds have matured, accommodating evolving investor preferences.

No Memecoins Allowed

The firm stated it will support a variety of crypto ETFs and mutual funds that comply with regulatory requirements, similar to how it approaches other non-core asset classes, such as gold.

Additionally, funds linked to memecoins, classified as higher-risk by the Securities and Exchange Commission (SEC), will not be included in this initiative. 

Kadjeski noted, “While Vanguard has no plans to launch its own crypto products, we serve millions of investors with diverse needs and risk profiles, and we aim to provide a brokerage trading platform that allows our clients to invest in choices that align with their preferences.”

Featured image from DALL-E, chart from TradingView.com 

South Korea’s largest cryptocurrency exchange, Upbit, is currently under scrutiny by regulators following a significant hack that led to the unauthorized withdrawal of approximately $36.9 million in assets on the Solana (SOL) network. The breach impacted over 20 different tokens and has prompted Upbit to freeze assets on its platform while an investigation unfolds.

Lazarus Group Tied To Upbit Hack

Authorities are now investigating the possibility of North Korean involvement in the cyber attack. Reports suggest that a group affiliated with North Korea’s intelligence agency, the notorious Lazarus Group, may have orchestrated the hack, which Upbit has described as an “abnormal withdrawal.” 

This group has been consistently linked to several high-profile crypto heists in recent years, and the US Federal Bureau of Investigation (FBI) has identified North Korean cyber operations as one of the most sophisticated and persistent threats.

The recent attack coincidentally occurred just days before the sixth anniversary of a previous major breach, in which Upbit lost 342,000 Ethereum (ETH) to North Korean hackers. 

According to an unnamed government official, this latest hack bears similarities to a 2019 incident in which approximately 58 billion won in cryptocurrencies was stolen, also attributed to the Lazarus Group.

In response to the attack, the South Korean National Police Agency has launched an investigation into the matter, although officials have not provided further comments on the case. Upbit’s operator, Dunamu, confirmed that an in-depth investigation into the cause and extent of the asset outflow is currently underway.

Crypto Exchange Moves Funds To Cold Storage

The cryptocurrency exchange’s CEO Oh Kyung-seok stated that as soon as abnormal withdrawal activity was detected, Upbit promptly suspended all deposit and withdrawal services. 

“We are conducting a comprehensive inspection, prioritizing the protection of member assets,” he said in a notice to users. Following the discovery of the unauthorized transactions, Upbit has taken steps to freeze the affected funds wherever possible.

To prevent any further unauthorized transfers, the exchange has shifted all remaining assets to cold storage, ensuring “a secure environment for funds.” 

Upbit is also said to be working with relevant project teams to freeze assets on-chain, having already blocked a portion of the stolen funds related to the cryptocurrency Solayer (LAYER). The exchange has indicated that deposits and withdrawals will only resume once full security checks are completed.

Dunamu has vowed to reimburse customers for any losses with business funds as part of its commitment to its users. It remains to be seen what additional information the country’s authorities will release in the coming days, as well as potential refund deadlines for affected individuals.  

Featured image from DALL-E, chart from TradingView.com 

The UK has declared a fresh crackdown on cryptocurrency holdings. The concept compels digital asset providers, including exchanges, to provide precise financial information about UK taxpayers. 

Major Shift In Crypto Trading Oversight

According to the Financial Times, cryptocurrency holders have been cautioned that, starting January 1, 2026, major cryptocurrency exchanges will be mandated to collect extensive transaction records from their UK customers. 

This includes crucial details such as purchase prices, selling amounts, and profits accrued from these transactions, as part of a broader initiative to combat tax avoidance.

His Majesty’s Revenue & Customs (HMRC) will gain further visibility into the financial activities of cryptocurrency holders as these exchanges are tasked with recording and eventually sharing this information directly with the tax authority. By 2027, HMRC will receive these detailed reports.

Experts have issued a warning to individuals trading in digital currencies—from Bitcoin (BTC) and Ethereum (ETH) to lesser-known tokens—to ensure they are accurately reporting their profits in their self-assessment tax returns. 

Seb Maley, CEO of tax insurance provider Qdos, emphasized that this development represents a fundamental shift in how digital asset trading is monitored from a tax perspective. “HMRC will soon know exactly who is making gains—and how much,” he stated. 

Maley noted that anyone involved in cryptocurrency must ensure that they are documenting their gains on their tax returns, as the new regulations will enable HMRC to cross-check this information against the records received from platforms.

Turkmenistan’s New Law on Digital Assets

In Asia, Turkmenistan has officially moved towards embracing digital assets by enacting a new law that legalizes and regulates cryptocurrencies, including provisions for licensing digital asset exchanges and mining entities. 

This significant development was reported by the state media on Friday, following the signing of the law by President Serdar Berdymukhamedov. The legislation is set to take effect on January 1, 2026.

One of the alleged reasons behind this move is Turkmenistan’s desire to diversify its economy, which has long relied heavily on exporting natural gas, primarily to China. 

A government spokesperson told Reuters on Friday that the newly implemented law aims to attract investment and foster digitalization within the country, aligning with global trends in the digital economy.

The legislation outlines regulations governing the creation, storage, placement, utilization, and circulation of virtual assets in Turkmenistan. It also clarifies the legal and economic status of these assets, marking a significant step toward establishing a structured framework for the digital asset industry.

Featured image from DALL-E, chart from TradingView.com 

The Ethereum (ETH) blockchain has confirmed that its highly anticipated Fusaka Upgrade is scheduled for launch on December 3, which follows the previous Pectra upgrade, introducing several key improvements for the network.

What Ethereum Users Can Look Forward To 

According to Friday’s official announcement on social media, the Fusaka Upgrade aims to make Ethereum applications faster, safer, and more user-friendly, bringing the platform closer to the functionality typical of consumer apps.

One of the major advancements included in the Fusaka upgrade is enhanced data scaling, which will enable near-instant transactions on the network. This improvement is expected to significantly reduce transaction speeds from minutes to milliseconds. 

The addition of mobile-ready wallets will also facilitate secure logins through passkeys, utilizing the hardware of users’ phones, which makes for a more streamlined and cost-effective experience.

Fusaka also introduces PeerDAS (EIP-7594), a feature that boosts data throughput by validating information via sampling, potentially increasing the throughput by up to eight times. 

This will also lead to reduced fees associated with blob transactions and provide additional space for growth, ultimately lowering user costs while maintaining the network’s decentralization.

Gas Limits, Security, And Fee Predictability 

One of the upgrade’s most notable effects is the increase in gas limits—from approximately 45 million to 60 million—expanding the network’s overall capacity. 

Additionally, the implementation of history expiry is designed to support lighter and cheaper nodes in the long run, facilitating smoother integration of blockchain infrastructure into existing corporate security standards.

Moreover, the Fusaka Upgrade is expected to natively support the standard cryptographic curve, secp256r1, aligning Ethereum’s cryptographic protocols with established standards. 

Lastly, enhancements to blob base-fee tuning are further expected to improve fee predictability, which aims to provide the blockchain’s users with a more consistent understanding of transaction costs.

When writing, Ethereum was trading at $3,045. Although it has recaptured this critical level, the token is still approximately 38% below its all-time high. However, the planned upgrade may result in increased adoption, usage, and demand for the altcoin, which might lead to further price recoveries. 

Featured image from DALL-E, chart from TradingView.com 

The Bitcoin price has recently stabilized above the $90,000 mark, sparking renewed optimism among bullish investors. Analysts at BTIG have suggested that this rebound could propel Bitcoin towards its ambitious target of $100,000. 

Bitcoin Price Positioned For ‘Reflex Rally’

Jonathan Krinsky, an analyst at BTIG, expressed confidence that the Bitcoin price is positioned for a continued “reflex rally,” potentially reaching $100,000 in the short-term. 

Historical data indicates that Bitcoin typically reaches a bottom around November 26, gaining momentum as the year comes to a close. This seasonal pattern further bolsters the prospects for the cryptocurrency in the coming weeks.

Another focal point for BTIG is Strategy (previously MicroStrategy), which the analyst views as a candidate for a mean reversion trade. The firm maintains a buy rating on MicroStrategy with a price target set at $630.

The analyst also highlighted that the week of Thanksgiving often aligns with momentum resets for digital assets, reinforcing expectations for a tactical upward movement into December.

Reversion Ahead To $50,000

Adding to the optimistic outlook, market analyst Rekt Capital recently mentioned that if the Bitcoin price can reclaim its position above the $94,180 mark, it would flip the 2025 yearly candle into a green one, substantiating theories of a potential rally for the leading cryptocurrency in the waning days of the year. 

However, Bitcoin must navigate certain hurdles to sustain this momentum. Rekt noted that for Bitcoin to build on its current prospects and approach the Macro downtrend line, it would require a weekly close above approximately $93,500, turning that level into support, similar to patterns observed in previous green cycles.

At the same time, Mike McGlone, an analyst at Bloomberg, has voiced concerns on social media regarding the Bitcoin price trajectory for the coming days. 

He suggested that a typical reversion to around $50,000 might be in the books now, emphasizing Bitcoin’s close correlation with the S&P 500. McGlone pointed out that the S&P 500’s 120-day volatility was at its lowest year-end level since 2017, indicating potential headwinds for Bitcoin.

Featured image from DALL-E, chart from TradingView.com