Crypto Market Drops as BTC, ETH Slide; Key CPI and Central Bank Decisions Loom

I. Crypto Market Overview

Key Takeaways

Macro Environment

US November CPI came in below expectations, fueling rate cut hopes and supporting crypto sentiment. The ECB held rates steady at 2%, maintaining stability for EUR-linked assets. The FDIC approved a framework for US banks to issue dollar-backed stablecoins, signaling deeper institutional integration.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with BTC down 4.43% to $97,474 and ETH falling 9.27% to $3,144.86, pressured by risk-off flows and ETF outflows. Altcoins underperformed, with ARB (-11.73%), FET (-12.59%), and CC (-15.06%) among the largest losers, while BEAT bucked the trend, rising 16.69% on strong ecosystem momentum.

Today's Outlook

Today, markets await the release of US November CPI and Core CPI data, alongside monetary policy decisions from the ECB, Bank of England, and Bank of Japan. These events are expected to drive volatility and set the tone for global risk assets, including crypto.

Fear and Greed Index

98.00% Annual Percentile

25 Fear

Total Crypto Market Cap

$2.99T

0.65%

Total Market Trading Volume

$122.15B

32.96%

Altcoin Season Index

0.00%

Quarterly Percentile

17 / 100

Total Futures Market Open Interest

3.97B

1.16%

Futures

785.52B

0.37%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Bank of England has cut its base rate from 4% to 3.75%, the lowest since January 2023, following a drop in UK inflation to 3.2%. This monetary easing is expected to boost crypto market liquidity and risk appetite, potentially supporting BTC and DeFi activity.

The US November CPI rose 2.7% year-on-year, below the 3.1% forecast, signaling cooling inflation. Softer inflation data increases expectations for Federal Reserve rate cuts, which could drive capital inflows into cryptocurrencies and enhance market sentiment.

The European Central Bank maintained its deposit facility rate at 2% as of December 18, reflecting a steady policy stance. The lack of tightening or easing supports stability in EUR-denominated crypto assets and may limit volatility in DeFi and NFT markets linked to the euro.

The Bank of Japan has raised interest rates, causing global market anxiety. Higher Japanese rates may strengthen the yen and prompt capital rotation, potentially impacting global crypto liquidity and cross-border trading flows.

Recent macroeconomic data releases, including US CPI and central bank rate decisions, have heightened volatility in BTC and ETH prices. Market participants are closely watching these indicators, as they directly influence crypto market direction and liquidity conditions.

Cryptocurrency Regulatory Trends

The FDIC has approved a new framework allowing U.S. banks to issue dollar-backed stablecoins under the GENIUS Act, integrating digital dollars into the regulated banking system and potentially boosting institutional adoption.

PayPal officially launched its USD stablecoin PYUSD on the Stable mainnet, expanding regulated stablecoin options and signaling increased institutional participation in the crypto market.

SoFi Bank has issued SoFiUSD, the first stablecoin from a U.S. national bank on a public blockchain, enabling 24/7 settlement and reflecting a trend of traditional banks entering the digital asset space.

Visa has expanded USDC settlement in the U.S., allowing banks and fintechs to settle transactions in stablecoins, which may accelerate mainstream adoption and regulatory acceptance of blockchain-based payments.

The U.S. Senate introduced the SAFE Crypto Act, mandating a federal task force to combat crypto-related fraud, aiming to enhance investor protection and strengthen regulatory enforcement in the digital asset sector.

Audiera (BEAT): BEAT surged 20.75% in 24h to $2.84 with $105.7M volume, driven by strong user engagement in its Web3 music and AI gaming ecosystem and recent all-time high momentum.

pippin (PIPPIN): PIPPIN rose 7.14% in 24h to $0.429, trading $52.3M, fueled by its AI agent narrative and high-profile creator, with nearly 1B tokens in circulation and strong Solana ecosystem interest.

Canton (CC): CC gained 14.92% in 24h to $0.0787 with $24.4M volume, ranking among top gainers despite limited public news, likely benefiting from speculative flows and increased trading activity.

Smart Money Movements

Long-term Bitcoin holders sold nearly 1 million BTC in the past 30 days, while a 'Bitcoin Shark' address accumulated 269,822 BTC, marking the largest concentrated accumulation in 13 years.

Institutional investors injected $2.6 billion into crypto asset vaults over the last two weeks, with Strategy acquiring over 20,000 BTC (nearly $2 billion) following the Fed's rate cut.

A major whale increased Solana holdings by 51,612.85 SOL, raising the total to 301,612.8 SOL ($37.36 million), with overall Solana holdings now exceeding $700 million.

A crypto whale expanded their ETH long position by 12,405 ETH ($35.33 million), bringing total ETH holdings to 203,000 ETH ($578 million), despite an unrealized loss of $70.1 million.

Ark Invest purchased $25.31 million in BitMine, Coinbase, and BULLISH shares via ETFs, increasing exposure as these crypto stocks traded at significant discounts.

Events to Watch

Dec 18 (Thu)

US November CPI and Core CPI data released; ECB, Bank of England, and Bank of Japan announce monetary policy decisions; Eurozone economic projections update.

Dec 19 (Fri)

US November PCE and CPI data to be released, providing key inflation and consumer spending signals; Bank of Japan interest rate decision expected.

Dec 21 (Sun)

Hyperliquid governance vote deadline: validators to signal on proposal to burn 1 billion HYPE tokens, potentially impacting token supply.

Dec 22 (Mon)

Aster Stage 5 Crystal airdrop begins, distributing 1.2% of ASTER supply; Stage 5 Crystal airdrop for six weeks with optional vesting.

III. Phemex Market Focus

New Listings

Dec 18: (SCOR/USDT)

SCOR is an on-chain sports engagement protocol transforming fan participation and sports IP into digital assets.

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