Crypto Market Drops as BTC and ETH Face Sharp Sell-Off; Quant Outperforms

I. Crypto Market Overview

Key Takeaways

Macro Environment

The US Federal Reserve delivered a third consecutive rate cut, weakening the dollar and boosting risk assets. The SEC approved DTCC's tokenization service for US securities, signaling deeper blockchain integration. US lawmakers are pushing for crypto access in 401(k) plans, potentially expanding retail demand.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with Bitcoin down 4.43% to $97,474 and Ethereum dropping 9.27% to $3,144.86, pressured by risk-off sentiment and ETF outflows. Among altcoins, QUANT rose 4.36%, while XDC fell 5.56% and BCH slid 3.80%. Quant outperformed on renewed interest in interoperability, while most sectors faced selling.

Today's Outlook

Today, CHEEL will unlock 2.86% of its circulating supply, worth $11.02 million, which may increase market volatility and impact token prices across related DeFi sectors.

Fear and Greed Index

80.00% Annual Percentile

29 Fear

Total Crypto Market Cap

$3.07T

1.87%

Total Market Trading Volume

$146.69B

6.37%

Altcoin Season Index

27.27%

Quarterly Percentile

19 / 100

Total Futures Market Open Interest

3.87B

14.63%

Futures

802.82B

3.83%

Perpetuals

II. Industry Updates

Macro-economic Policies

India's CPI inflation rose to 0.71% in November 2025, up from a record low of 0.25% in October, driven by higher food and fuel prices. This persistent low inflation supports a stable macro environment, potentially enhancing INR-denominated DeFi and stablecoin activity as real yields remain attractive.

The US Federal Reserve implemented its third consecutive 25bps rate cut this week, signaling a cautious approach to further easing. The move has weakened the US dollar and supported risk assets, contributing to increased Bitcoin and Ethereum inflows as investors seek higher returns amid lower US yields.

The British pound declined after UK GDP unexpectedly contracted by 0.1% in October, missing forecasts. This economic weakness has increased expectations for a Bank of England rate cut, which could drive capital flows into crypto assets as investors hedge against further GBP depreciation.

China's central bank announced a 600 billion yuan (approx. $85 billion) outright reverse repo operation to maintain ample liquidity. This sustained monetary support is expected to boost domestic liquidity, potentially increasing demand for digital assets and cross-border stablecoin transactions in the region.

The euro gained as markets anticipate the European Central Bank will maintain its current policy stance, while the US dollar faces pressure from dovish Fed signals. This policy divergence is supporting euro-denominated crypto trading pairs and may drive further capital rotation into European digital asset markets.

Cryptocurrency Regulatory Trends

The US OCC has conditionally approved Ripple, Circle, BitGo, Fidelity, and Paxos to establish national trust banks, marking a major regulatory milestone for stablecoin and digital asset custody. This move is expected to boost institutional confidence and accelerate mainstream adoption.

The SEC granted the DTCC a no-action letter to launch a tokenization service for US securities, including stocks, ETFs, and Treasuries, starting in 2026. This signals growing regulatory support for blockchain-based financial infrastructure and could drive further integration of traditional and digital markets.

The CFTC has withdrawn its outdated 28-day crypto delivery rule, easing compliance for exchanges and allowing digital assets to be regulated under a technology-neutral framework. This regulatory shift is expected to facilitate new product launches and enhance US market competitiveness.

US lawmakers have urged the SEC to update rules and allow Bitcoin and other cryptocurrencies in 401(k) retirement plans, following a recent executive order. If implemented, this could expand retail access to crypto and increase long-term demand.

Moody's has introduced a stablecoin rating framework focused on reserve quality and operational stability, aiming to differentiate dollar-pegged tokens and enhance investor protection. This may influence stablecoin adoption and risk assessment in the market.

Quant (QNT): Quant rose 4.36% in 24h, driven by increased trading volume to $17.8M and renewed interest in interoperability solutions, with circulating supply at 12.07M QNT.

XDC Network (XDC): XDC gained 1.49% in 24h, supported by $35.6M trading volume and ongoing adoption in trade finance and RWA tokenization, with 18.52B XDC circulating.

Bitcoin Cash (BCH): BCH climbed 1.95% in 24h, with $366.6M trading volume and stable price action in the $573–$585 range, reflecting steady demand for peer-to-peer payments.

Smart Money Movements

A Bitcoin whale accumulated $600 million in ETH, BTC, and SOL, including 150,466 ETH ($491M), 1,000 BTC ($92.6M), and 212,907 SOL ($27.8M), with additional limit orders for 40,000 ETH and 50,000 SOL.

Polychain Capital transferred 4.11 million PENDLE tokens worth $9 million to FalconX, highlighting ongoing large-scale portfolio adjustments among major crypto funds.

AAVE whales accumulated over 589,000 AAVE tokens in the past 180 days, while exchange supply dropped 23% in 30 days to 4.39 million, signaling increased self-custody and smart money accumulation.

Northern Trust held 1.488 million shares of MicroStrategy, valued at $260 million, reflecting continued institutional exposure to Bitcoin through equity proxies.

Bitcoin accumulation addresses acquired 75,000 BTC in the first ten days of December, raising their total holdings to approximately 315,000 BTC and indicating persistent long-term accumulation by large holders.

Events to Watch

Dec 13 (Sat)

CHEEL will unlock 2.86% of its circulating supply, worth $11.02 million, potentially increasing market volatility.

Dec 15 (Mon)

Starknet (STRK) will unlock 127M tokens (~2.6% of supply, $14.13M), likely creating significant sell pressure.

Dec 16 (Tue)

US Non-Farm Payrolls, November Jobs Report, and Average Hourly Earnings data will be released, key for Fed policy outlook.

Dec 18 (Thu)

US CPI and Core CPI for November, ECB and Bank of England interest rate decisions, and ECB press conference will be released.

III. Phemex Market Focus

New Listings

Dec 12: (POWER/USDT)

Phemex lists Power Protocol (POWER) for spot trading, enhancing blockchain entertainment ecosystem.

Dec 12: (CYS/USDT)

Phemex lists Cysic (CYS) for spot trading, transforming compute resources into tokenized assets.

Dec 11: (US/USDT)

Phemex lists Talus Network (US) for spot trading, enabling on-chain AI agents and automation.

Dec 11: (ALMANAK/USDT)

Phemex lists Almanak (ALMANAK) for spot trading, offering no-code platform for trading strategies.

Dec 9: (WET/USDT)

Phemex lists WET (HumidiFi) for spot trading, Solana's largest DEX by volume.

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