Crypto Market Drops as BTC, ETH Slide; Major Token Unlocks and Macro Events Ahead

I. Crypto Market Overview

Key Takeaways

Macro Environment

The US Federal Reserve's recent rate cut and balance sheet expansion have boosted global liquidity, supporting risk assets. The Bank of Japan's rate hike signals a shift in global monetary policy, potentially increasing volatility. Regulatory clarity is improving, with the US SEC enabling broker-dealer crypto custody and Hong Kong advancing stablecoin licensing.

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 weak spot demand and looming $23B options expiry. Altcoins also fell, with Aptos down 6.43% and Zcash down 3.97%, while LEO bucked the trend, rising 0.42% on strong token burn dynamics.

Today's Outlook

Today, Aethir unlocks 15.71M ATH tokens and EigenCloud releases 36.82M EIGEN tokens, potentially impacting token prices. The Uniswap governance vote on the UNIfication proposal begins, which could influence UNI and DeFi sentiment. The US Core PCE Price Index release and Bank of Japan press conference may drive macro-driven volatility.

Fear and Greed Index

90.00% Annual Percentile

21 Fear

Total Crypto Market Cap

$2.98T

3.46%

Total Market Trading Volume

$122.92B

5.04%

Altcoin Season Index

0.00%

Quarterly Percentile

14 / 100

Total Futures Market Open Interest

3.45B

13.63%

Futures

837.74B

12.85%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Bank of Japan raised its key interest rate to 0.75%, the highest in 30 years, signaling a shift from ultra-loose monetary policy. This move may reduce global liquidity and impact risk appetite, potentially increasing volatility in crypto markets and affecting Bitcoin price correlations.

The Bank of England cut its policy rate to 3.75% following a decline in UK inflation, aiming to support economic growth. Lower UK rates could boost risk assets and DeFi liquidity, with potential spillover effects on crypto market sentiment.

The European Central Bank maintained its main interest rate at 2%, citing balanced but significant risks to growth and inflation. The ECB's steady stance supports Eurozone financial stability, which may help sustain institutional flows into digital assets and maintain stablecoin demand.

The U.S. Federal Reserve recently cut its policy rate by 25 basis points to a 3.50–3.75% range and quietly resumed balance sheet expansion, increasing market liquidity. This dovish shift is supportive for crypto asset prices and may enhance DeFi activity and NFT trading volumes.

JPMorgan forecasts stablecoin supply could reach $500–600 billion by 2028, driven mainly by crypto trading and DeFi collateral needs. The current macro environment, with central banks easing, supports stablecoin adoption and underpins liquidity in the broader crypto ecosystem.

Cryptocurrency Regulatory Trends

The US SEC has issued new guidelines allowing broker-dealers to custody crypto asset securities using private key control, aiming to clarify compliance and boost institutional adoption of tokenized assets.

Poland's lower house has overridden a presidential veto to re-approve a MiCA-aligned crypto bill, potentially imposing stricter domestic rules and increasing compliance costs for local crypto firms.

Cyprus' CySEC has launched a consultation on new reporting rules for crypto-asset service providers under MiCA, requiring more frequent financial disclosures and stricter compliance, impacting market transparency.

Hong Kong has received 36 stablecoin license applications, with the first approvals expected in early 2026, signaling strong demand and a shift toward regulated stablecoin issuance in Asia.

The US SEC seeks multi-year officer and director bans for former Alameda and FTX executives, reinforcing regulatory enforcement and potentially restoring some investor confidence after the FTX collapse.

UNUS SED LEO (LEO): LEO surged 19.1% in 24h, driven by strong token burn mechanics—27% of iFinex revenue is used monthly to buy back and burn tokens, reducing supply and boosting price.

Zcash (ZEC): ZEC jumped 15.4% in 24h, with trading volume reaching $758M. The rally is fueled by renewed privacy narrative and increased demand for zero-knowledge proof-based assets.

Aptos (APT): APT rose 13.7% in 24h, hitting a low of $1.42 before rebounding. The move is supported by high developer activity and recent ecosystem growth, attracting new capital inflows.

Smart Money Movements

A total of 773 BTC worth $68.3 million was transferred from Robinhood to Coinbase Institutional, indicating significant institutional repositioning.

Over 334 million XRP, valued at $466 million, was moved between unknown wallets in four large transactions, coinciding with a 3.29% price increase to $1.88.

B2C2 Group transferred 10,700 AAVE, valued at approximately $2 million, to Coinbase, reflecting active institutional liquidity management.

Jump Crypto transferred 6 million USD1, equivalent to $6 million, to BitGo, highlighting ongoing stablecoin activity among major crypto entities.

A dormant Ethereum whale wallet holding 2,000 ETH, valued at $5.9 million, was reactivated after 10 years, signaling renewed large-holder activity.

Events to Watch

Dec 20 (Sat)

Aethir (ATH) unlocks 15.71M tokens (~$146,748); EigenCloud (EIGEN) unlocks 36.82M tokens (10.79% supply, $21.8M); Uniswap governance vote on UNIfication proposal begins.

Dec 20 (Sat)

US Core PCE Price Index for October 2025 releases, a key inflation gauge; Bank of Japan holds monetary policy press conference; Russian Central Bank announces interest rate decision.

Dec 23 (Tue)

US Q3 2025 GDP and personal income data to be released by the Bureau of Economic Analysis, expected to impact market sentiment.

Dec 25 (Thu)

Uniswap governance vote on burning 100M UNI tokens and activating protocol fees concludes; outcome may reshape Uniswap ecosystem.

Dec 26 (Fri)

Over $23B in Bitcoin options contracts set to expire, representing more than half of Deribit's open interest, likely to drive market 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 key interest rate to 0.75%, the highest in 30 years, signaling a shift from ultra-loose monetary policy. This move may reduce global liquidity and impact risk appetite, potentially increasing volatility in crypto markets and affecting Bitcoin price correlations.

The Bank of England cut its policy rate to 3.75% following a decline in UK inflation, aiming to support economic growth. Lower UK rates could boost risk assets and DeFi liquidity, with potential spillover effects on crypto market sentiment.

The European Central Bank maintained its main interest rate at 2%, citing balanced but significant risks to growth and inflation. The ECB's steady stance supports Eurozone financial stability, which may help sustain institutional flows into digital assets and maintain stablecoin demand.

The U.S. Federal Reserve recently cut its policy rate by 25 basis points to a 3.50–3.75% range and quietly resumed balance sheet expansion, increasing market liquidity. This dovish shift is supportive for crypto asset prices and may enhance DeFi activity and NFT trading volumes.

JPMorgan forecasts stablecoin supply could reach $500–600 billion by 2028, driven mainly by crypto trading and DeFi collateral needs. The current macro environment, with central banks easing, supports stablecoin adoption and underpins liquidity in the broader crypto ecosystem.

Cryptocurrency Regulatory Trends

The US SEC has issued new guidelines allowing broker-dealers to custody crypto asset securities using private key control, aiming to clarify compliance and boost institutional adoption of tokenized assets.

Poland's lower house has overridden a presidential veto to re-approve a MiCA-aligned crypto bill, potentially imposing stricter domestic rules and increasing compliance costs for local crypto firms.

Cyprus' CySEC has launched a consultation on new reporting rules for crypto-asset service providers under MiCA, requiring more frequent financial disclosures and stricter compliance, impacting market transparency.

Hong Kong has received 36 stablecoin license applications, with the first approvals expected in early 2026, signaling strong demand and a shift toward regulated stablecoin issuance in Asia.

The US SEC seeks multi-year officer and director bans for former Alameda and FTX executives, reinforcing regulatory enforcement and potentially restoring some investor confidence after the FTX collapse.

Trending Tokens

UNUS SED LEO (LEO): LEO surged 19.1% in 24h, driven by strong token burn mechanics—27% of iFinex revenue is used monthly to buy back and burn tokens, reducing supply and boosting price.

Zcash (ZEC): ZEC jumped 15.4% in 24h, with trading volume reaching $758M. The rally is fueled by renewed privacy narrative and increased demand for zero-knowledge proof-based assets.

Aptos (APT): APT rose 13.7% in 24h, hitting a low of $1.42 before rebounding. The move is supported by high developer activity and recent ecosystem growth, attracting new capital inflows.

Smart Money Movements

A total of 773 BTC worth $68.3 million was transferred from Robinhood to Coinbase Institutional, indicating significant institutional repositioning.

Over 334 million XRP, valued at $466 million, was moved between unknown wallets in four large transactions, coinciding with a 3.29% price increase to $1.88.

B2C2 Group transferred 10,700 AAVE, valued at approximately $2 million, to Coinbase, reflecting active institutional liquidity management.

Jump Crypto transferred 6 million USD1, equivalent to $6 million, to BitGo, highlighting ongoing stablecoin activity among major crypto entities.

A dormant Ethereum whale wallet holding 2,000 ETH, valued at $5.9 million, was reactivated after 10 years, signaling renewed large-holder activity.

Events to Watch

Dec 20 (Sat)

Dec 20 (Sat)

Dec 23 (Tue)

III. Phemex Market Focus

New Listings

Phemex Promotions