Crypto Market Drops as BTC, ETH Slide; Major Token Unlocks and Regulatory Shifts

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve cut rates by 25 basis points to 3.5%-3.75%, aiming to support a weakening labor market. Regulatory clarity improved as the OCC authorized US banks to conduct riskless principal crypto trades, boosting institutional participation. US equities rallied post-Fed decision, while a weaker dollar and positive Chinese CPI data support global risk sentiment.

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 ETF outflows and risk-off sentiment. Most altcoins dropped, led by SOL (-8.75%), XDC (-5.56%), and HYPE (-3.60%), while XMR outperformed with a milder 2.52% loss, supported by privacy demand. DeFi and RWA-related tokens showed relative resilience amid sector rotation.

Today's Outlook

Key events today include the unlock of 888.89M STABLE tokens ($16.19M, 0.89% supply, 5.05% market cap), the CoinList $RNBW Token Sale, and a US Interest Rate Decision Watch Party, all of which may drive volatility and liquidity shifts.

Fear and Greed Index

70.00% Annual Percentile

30 Fear

Total Crypto Market Cap

$3.12T

1.16%

Total Market Trading Volume

$145.33B

2.36%

Altcoin Season Index

0.00%

Quarterly Percentile

17 / 100

Total Futures Market Open Interest

3.89B

2.06%

Futures

794.46B

6.09%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Federal Reserve implemented a 25-basis-point interest rate cut, bringing the federal funds rate to 3.5%-3.75%, aiming to support a weakening labor market. This move is expected to lower borrowing costs and may boost crypto market liquidity and risk appetite.

Fed Chair Powell signaled a likely pause in further rate cuts, citing internal FOMC divisions and persistent inflation above the 2% target. The uncertainty over future monetary policy increases volatility in Bitcoin and DeFi asset flows.

U.S. stock indices rallied after the Fed's rate cut, with the S&P 500 and Nasdaq reaching new highs. This positive equity sentiment often correlates with increased inflows into crypto ETFs and higher trading volumes in major digital assets.

The U.S. dollar weakened against major currencies following the Fed's decision, supporting a short-term bullish bias for BTC and ETH as dollar-denominated crypto assets become more attractive to global investors.

China's November CPI rose 0.7% year-on-year, the fastest pace since March 2024, signaling a moderate rebound in domestic demand. Improved Chinese economic data can enhance global risk sentiment, indirectly supporting crypto market stability.

Cryptocurrency Regulatory Trends

The U.S. Office of the Comptroller of the Currency (OCC) has authorized national banks to conduct riskless principal crypto transactions, allowing them to intermediate client trades without holding crypto inventory. This regulatory clarity is expected to boost institutional participation and enhance market liquidity.

A crucial vote on the U.S. CLARITY Act, which aims to establish a comprehensive digital asset regulatory framework, is imminent. The bill addresses asset classification and consumer protection, and its outcome could significantly impact market structure and investor confidence.

The SEC Chair has signaled a major shift in crypto policy, indicating that most ICOs may not be regulated as securities. This approach could reduce compliance burdens and encourage innovation, potentially increasing token issuance and market activity.

The American Federation of Teachers has warned the U.S. Senate that the Responsible Financial Innovation Act (RFIA) could weaken investor protections and expose pension funds to crypto-related risks, raising concerns about regulatory gaps and market stability.

The CFTC has launched a pilot program permitting BTC, ETH, and USDC as collateral for derivatives, providing new regulatory guidance for tokenized assets. This move is expected to expand institutional access and support the growth of regulated crypto markets.

Hyperliquid (HYPE): Trading volume surged to $294.7M in 24h, price up 2.03%. Growth driven by high DeFi activity and on-chain perpetuals demand.

Monero (XMR): Price rose 3.33% in 24h to $401.08 with $190.5M volume, supported by increased privacy coin demand and strong decentralized mining.

XDC Network (XDC): Gained 3.23% in 24h, reaching $0.0499 with $32.7M volume. Boosted by recent RWA tokenization initiatives and trade finance adoption.

Smart Money Movements

BlackRock deposited 2,196 Bitcoin worth $202.76 million into Coinbase, demonstrating continued institutional accumulation of BTC.

Bitmine acquired 33,504 Ethereum valued at $112.06 million within six hours, highlighting aggressive institutional investment in ETH.

A crypto whale withdrew 101,365 SOL, valued at $13.89 million, from Kraken, increasing total holdings to 628,564 SOL ($84.13 million), with 109,348 SOL staked.

Crypto trader Machi increased his Ethereum long position to 11,100 ETH, valued at $36.36 million, on Hyperliquid, with a liquidation price set at $3,201.04.

Galaxy Digital transferred 300 Bitcoin worth $27.6 million to a new wallet, raising the wallet's total to 1,200 BTC ($110.47 million).

Events to Watch

Dec 11 (Thu)

STABLE will unlock 888.89M tokens ($16.19M, 0.89% supply, 5.05% market cap); CoinList $RNBW Token Sale begins; US Interest Rate Decision Watch Party.

Dec 12 (Fri)

Aptos (APT) unlocks $19.8M in tokens (1.5% market cap); US SEC to decide on VanEck spot Avalanche ETF; Wormhole token unlock for Guardian Nodes.

Dec 13 (Sat)

XELIS mainnet smart contracts upgrade at 17:00 UTC; Cheelee unlocks 2.86% of supply (20.81M tokens) at 12 AM UTC.

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