BOJ Rate Hike Triggers Yen Drop, Crypto Volatility; Euro Stablecoins Surge

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Bank of Japan raised its benchmark rate to 0.75%, sharply weakening the yen and increasing global FX and crypto volatility. Euro-denominated stablecoins surpassed $1B in market cap, signaling growing demand for euro-based digital assets and diversifying liquidity away from USD. US lawmakers proposed exempting stablecoin transactions under $200 from capital gains tax, aiming to boost retail crypto adoption and on-chain activity.

Crypto Market

The crypto market saw mixed performance over the past 12 hours, with Bitcoin (BTC) trading near $88,000, down slightly amid global risk-off sentiment and yen volatility. Ethereum (ETH) outperformed, up 0.36% at $2,970, supported by strong DeFi activity. Altcoins were led by Midnight (NIGHT) up 22%, Uniswap (UNI) up 16.8%, and Merlin Chain (MERL) up 7.8%, driven by ecosystem growth and increased DEX usage, while most other sectors lagged.

Today's Outlook

No major macroeconomic data releases or token unlocks are scheduled for today, but market participants are closely watching for volatility spillover from the yen's sharp depreciation and ongoing regulatory developments in the US and EU.

Fear and Greed Index

94.00% Annual Percentile

27 Fear

Total Crypto Market Cap

$2.99T

0.42%

Total Market Trading Volume

$54.34B

55.79%

Altcoin Season Index

0.00%

Quarterly Percentile

14 / 100

Total Futures Market Open Interest

3.42B

0.94%

Futures

730.01B

12.06%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Bank of Japan raised its benchmark interest rate to 0.75%, the highest in 30 years, signaling continued monetary tightening. This move led to a sharp depreciation of the yen, impacting global FX markets and increasing volatility in crypto assets as carry trade dynamics shift.

Euro-denominated stablecoins surpassed $1 billion in market cap, led by Circle's EURC, reflecting growing demand for euro-based digital assets. This trend may diversify liquidity away from USD stablecoins, influencing DeFi protocols and cross-border crypto settlements.

The US House introduced a bill to exempt stablecoin transactions under $200 from capital gains tax, aiming to facilitate small-scale crypto payments. This could boost retail crypto adoption and increase on-chain transaction volumes in the US market.

US Representatives are drafting a bipartisan crypto tax framework proposing tax deferral for staking and mining rewards up to five years. If enacted, this would enhance DeFi yield strategies and attract more participants to staking protocols, supporting network security and liquidity.

Euro borrowing by global issuers rose nearly 20% in 2025, reaching record highs as investors seek alternatives to the US dollar. This shift in capital flows may affect stablecoin demand and FX risk management strategies in the crypto market.

Cryptocurrency Regulatory Trends

Over 125 crypto firms urged the US Senate to reject banks' push to ban stablecoin yields, warning such restrictions under the GENIUS Act would stifle innovation and limit digital asset sector growth.

US lawmakers proposed a bill to exempt stablecoin transactions under $200 from capital gains tax, aiming to simplify compliance and encourage broader crypto adoption for everyday payments.

The SEC filed for permanent antifraud injunctions and long-term officer bans against former FTX executives, reinforcing regulatory scrutiny and signaling stricter accountability for crypto leadership.

Euro-denominated stablecoins surpassed $1 billion in market cap, led by Circle's EURC, reflecting growing regulatory-compliant stablecoin adoption and increased cross-chain activity in the sector.

A new US bill proposes tax deferral for staking and mining rewards and integrates crypto assets into securities-related tax rules, potentially increasing institutional participation and regulatory clarity.

Midnight (NIGHT): The token surged over 22% in 24h, ranking among top gainers with $4.78B volume. The rally is driven by strong market momentum and increased trading activity, but no specific event was identified in the last 24 hours.

Uniswap (UNI): UNI rose 16.8% in 24h with $682M trading volume, supported by renewed DeFi interest and high protocol usage. The price jump is attributed to increased DEX activity, though no single major event was reported in the last day.

Merlin Chain (MERL): MERL gained 7.8% in 24h, reaching $24.9M in volume. The price increase is linked to ongoing adoption of its Bitcoin Layer 2 solution and ecosystem growth, but no specific news catalyst was found in the past 24 hours.

Smart Money Movements

A Bitcoin whale purchased 2,509 BTC worth approximately $221 million from FalconX, distributing the funds across three new wallets within the past 24 hours, signaling large-scale accumulation during market weakness.

An investor acquired 5,678 ETH for $16.95 million at an average price of $2,985.7 per token in the last hour, following a previous $14.97 million ETH purchase and $137,000 profit earlier this month.

James Wynn closed a Bitcoin short for a $21,000 profit and immediately opened a 40x long position using 14.08 BTC, valued at about $1.24 million, with a liquidation price set at $87,111.

Vitalik Buterin sold multiple crypto assets, including UNI, ZORA, BNB, KNC, OMG, and meme tokens, over the past two days, then transferred $564,672 in USDC and 27 ETH (about $80,364) via RAILGUN protocol.

Arthur Hayes transferred 508.647 ETH, valued at approximately $1.5 million, to Galaxy Digital as Ethereum's price corrected to $2,981, indicating a possible portfolio rebalancing move.

Events to Watch

Dec 22 (Mon)

Onyxcoin is forecasted to drop 17.47% to $0.003805; WLD is predicted to fall 23% to $0.394 amid extreme fear sentiment.

Dec 23 (Tue)

US Q3 GDP and Core Durable Goods Orders data will be released; SOON unlocks 15.92M tokens for NFT holders; Undeads Games unlocks 2.15M tokens.

Dec 23 (Tue)

US CB Consumer Confidence data for December will be published; USD GDP Growth Rate QoQ (Q3) also set for release.

Dec 24 (Wed)

US Unemployment Claims data will be released, expected at 224K, potentially impacting market sentiment.

Dec 26 (Fri)

CME Bitcoin futures front-month contract expires, marking the year's final major BTC derivatives settlement and possible volatility.

Table of Contents

I. Crypto Market Overview

Key Takeaways

Macro Environment

Crypto Market

Today's Outlook

II. Industry Updates

Macro-economic Policies

The Bank of Japan raised its benchmark interest rate to 0.75%, the highest in 30 years, signaling continued monetary tightening. This move led to a sharp depreciation of the yen, impacting global FX markets and increasing volatility in crypto assets as carry trade dynamics shift.

Euro-denominated stablecoins surpassed $1 billion in market cap, led by Circle's EURC, reflecting growing demand for euro-based digital assets. This trend may diversify liquidity away from USD stablecoins, influencing DeFi protocols and cross-border crypto settlements.

The US House introduced a bill to exempt stablecoin transactions under $200 from capital gains tax, aiming to facilitate small-scale crypto payments. This could boost retail crypto adoption and increase on-chain transaction volumes in the US market.

US Representatives are drafting a bipartisan crypto tax framework proposing tax deferral for staking and mining rewards up to five years. If enacted, this would enhance DeFi yield strategies and attract more participants to staking protocols, supporting network security and liquidity.

Euro borrowing by global issuers rose nearly 20% in 2025, reaching record highs as investors seek alternatives to the US dollar. This shift in capital flows may affect stablecoin demand and FX risk management strategies in the crypto market.

Cryptocurrency Regulatory Trends

Over 125 crypto firms urged the US Senate to reject banks' push to ban stablecoin yields, warning such restrictions under the GENIUS Act would stifle innovation and limit digital asset sector growth.

US lawmakers proposed a bill to exempt stablecoin transactions under $200 from capital gains tax, aiming to simplify compliance and encourage broader crypto adoption for everyday payments.

The SEC filed for permanent antifraud injunctions and long-term officer bans against former FTX executives, reinforcing regulatory scrutiny and signaling stricter accountability for crypto leadership.

Euro-denominated stablecoins surpassed $1 billion in market cap, led by Circle's EURC, reflecting growing regulatory-compliant stablecoin adoption and increased cross-chain activity in the sector.

A new US bill proposes tax deferral for staking and mining rewards and integrates crypto assets into securities-related tax rules, potentially increasing institutional participation and regulatory clarity.

Trending Tokens

Midnight (NIGHT): The token surged over 22% in 24h, ranking among top gainers with $4.78B volume. The rally is driven by strong market momentum and increased trading activity, but no specific event was identified in the last 24 hours.

Uniswap (UNI): UNI rose 16.8% in 24h with $682M trading volume, supported by renewed DeFi interest and high protocol usage. The price jump is attributed to increased DEX activity, though no single major event was reported in the last day.

Merlin Chain (MERL): MERL gained 7.8% in 24h, reaching $24.9M in volume. The price increase is linked to ongoing adoption of its Bitcoin Layer 2 solution and ecosystem growth, but no specific news catalyst was found in the past 24 hours.

Smart Money Movements

A Bitcoin whale purchased 2,509 BTC worth approximately $221 million from FalconX, distributing the funds across three new wallets within the past 24 hours, signaling large-scale accumulation during market weakness.

An investor acquired 5,678 ETH for $16.95 million at an average price of $2,985.7 per token in the last hour, following a previous $14.97 million ETH purchase and $137,000 profit earlier this month.

James Wynn closed a Bitcoin short for a $21,000 profit and immediately opened a 40x long position using 14.08 BTC, valued at about $1.24 million, with a liquidation price set at $87,111.

Vitalik Buterin sold multiple crypto assets, including UNI, ZORA, BNB, KNC, OMG, and meme tokens, over the past two days, then transferred $564,672 in USDC and 27 ETH (about $80,364) via RAILGUN protocol.

Arthur Hayes transferred 508.647 ETH, valued at approximately $1.5 million, to Galaxy Digital as Ethereum's price corrected to $2,981, indicating a possible portfolio rebalancing move.

Events to Watch

Dec 22 (Mon)

Dec 23 (Tue)

Dec 23 (Tue)

Dec 24 (Wed)

Dec 26 (Fri)

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