Crypto Market Drops as BTC, ETH Lead Declines; FOMC Minutes in Focus

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve's recent 25 basis point rate cut is boosting risk appetite for crypto. Russia's first crypto-backed loan and Kyrgyzstan's $50M GOLD-backed stablecoin highlight growing institutional and sovereign blockchain adoption. Subdued inflation in India and Spain supports a stable macro backdrop, favoring digital asset inflows.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with BTC down 4.43% to $97,474 and ETH dropping 9.27% to $3,144.86, pressured by ETF outflows and weak risk sentiment. Altcoins also fell, with XRP down 8.61%, SOL down 8.75%, and PUMP down 8.03%. ZEC outperformed, dropping only 3.97% amid large exchange withdrawals and shrinking supply, while STRK fell 3.32% ahead of a major token unlock.

Today's Outlook

Today's key event is the release of the FOMC meeting minutes, which will provide insight into the rationale behind recent US rate cuts and could drive volatility across crypto markets as investors reassess risk and liquidity conditions.

Fear and Greed Index

82.00% Annual Percentile

30 Fear

Total Crypto Market Cap

$2.98T

0.93%

Total Market Trading Volume

$84.99B

18.11%

Altcoin Season Index

72.73%

Quarterly Percentile

19 / 100

Total Futures Market Open Interest

2.56B

11.46%

Futures

730.62B

6.02%

Perpetuals

II. Industry Updates

Macro-economic Policies

Sberbank issued Russia's first crypto-backed loan to Intelion Data, integrating Bitcoin as collateral in traditional banking. This pilot enhances digital asset liquidity and signals growing institutional acceptance, potentially boosting BTC market confidence and DeFi lending models.

Kyrgyzstan launched a $50M gold-backed stablecoin (USDKG) to modernize cross-border payments. The asset-backed token, fully audited and pegged to the US dollar, may increase demand for stablecoins and drive blockchain adoption in emerging markets, supporting crypto market stability.

The Federal Reserve cut interest rates by 25 basis points, marking its third reduction since September. Lower rates typically increase risk appetite, potentially driving capital inflows into Bitcoin and altcoins as investors seek higher returns amid a low-yield environment.

India's inflation remained subdued in 2025, with CPI below 2% and further rate cuts possible. Benign inflation and monetary easing could support capital flows into digital assets, enhancing DeFi liquidity and encouraging crypto investment in the region.

Spain's inflation eased to 2.9% in December, with average 2025 CPI at 2.7%. Lower inflation and stable economic outlook may support investor confidence, indirectly benefiting crypto markets by sustaining risk-on sentiment and supporting NFT and DeFi activity.

Cryptocurrency Regulatory Trends

The UK government will establish a comprehensive crypto regulatory framework by 2027, with new rules covering trading, custody, staking, and lending, aiming to enhance market integrity and investor protection.

South Korea has delayed its Digital Asset Basic Law to 2026 due to disputes over stablecoin issuer regulation, increasing uncertainty for exchanges and stablecoin projects in the region.

The U.S. Office of the Comptroller of the Currency has conditionally approved national trust bank charters for major crypto firms, enabling them to offer custody and fiduciary services, which is expected to boost institutional participation.

Starting January 2026, 48 jurisdictions including the UK and EU will enforce the OECD's CARF crypto reporting framework, requiring exchanges to enhance KYC and AML processes, likely increasing compliance costs and operational complexity.

South Korea's Financial Services Commission has proposed limiting major shareholders' stakes in leading crypto exchanges to 15-20%, aiming to reduce concentrated control and increase regulatory oversight.

Zcash (ZEC): ZEC surged above $535 with a 3.3% 24h gain, driven by a $4.12M withdrawal from Kraken and shrinking exchange supply, signaling a potential breakout toward $800.

Pump.fun (PUMP): Over $2M in PUMP tokens were accumulated by whales within 5 minutes, fueling short-term trading volume and price volatility despite a year-to-date downtrend.

No verifiable market-moving events or data could be found for Canton23C (CANTON23C) and Midnight45N (MIDNIGHT45N); ZEC and PUMP are the only Top Gainers with concrete drivers.

Smart Money Movements

Metaplanet acquired 4,279 BTC for $451.06 million in Q4 2025, raising its total Bitcoin holdings to 35,102 BTC valued at $3.78 billion.

Bitmine Immersion Technologies purchased 44,000 ETH, increasing its total to 4.11 million ETH and raising its share of Ethereum supply to 3.41%.

BlackRock transferred 657.96 BTC, worth approximately $57.83 million, to Coinbase Prime in a single transaction completed within 20 minutes.

Cypherpunk invested $29 million to acquire 56,418 Zcash (ZEC), bringing its total ZEC holdings to 290,062 tokens, about 1.76% of circulating supply.

Justin Sun deposited $200 million into Lighter LLP and allocated $4.65 million to purchase 1.66 million LIT tokens, with $1.2 million USDC remaining.

Events to Watch

Dec 30 (Tue)

FOMC meeting minutes to be released, offering insight into recent US rate cuts and potential crypto market impact.

Dec 31 (Wed)

US Department of Labor to release jobless claims data; Kamino, Ethena, and Renzo to unlock new token supplies, possibly increasing volatility.

Jan 1 (Thu)

Sui to unlock 43.69M SUI tokens; GPS to unlock 707.87M tokens ($3.47M); major token unlocks may affect market supply.

Jan 6 (Mon)

Hyperliquid Labs to begin monthly distribution of 1.2M HYPE tokens (~$31.6M), starting a 24-month vesting plan.

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