Crypto Market Drops as BTC, ETH Slide; STABLE Token Unlocks $566M

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve is expected to cut rates by 25 basis points this week, potentially boosting crypto liquidity. The US CFTC now oversees spot crypto markets, increasing institutional legitimacy. South Korea's new no-fault compensation law for exchanges aims to enhance user protection and confidence.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with Bitcoin down 4.4% to $97,474 and Ethereum dropping 9.3% to $3,144, pressured by ETF outflows and weak risk sentiment. Zcash fell 4.0% despite recent gains, while SPX6900 surged 13.8% on meme coin speculation. Altcoins were mixed, with privacy and meme sectors showing the most volatility.

Today's Outlook

Today, the Further Network Summit takes place in Abu Dhabi, drawing industry attention. Additionally, STABLE unlocks 18 billion tokens worth $566 million, which could significantly impact market liquidity and token price dynamics.

Fear and Greed Index

60.00% Annual Percentile

22 Fear

Total Crypto Market Cap

$3.12T

2.72%

Total Market Trading Volume

$128.89B

72.60%

Altcoin Season Index

0.00%

Quarterly Percentile

18 / 100

Total Futures Market Open Interest

4.34B

13.13%

Futures

845.00B

22.88%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Federal Reserve is widely expected to cut interest rates by 25 basis points at its FOMC meeting this week, a move anticipated to boost risk appetite and potentially increase Bitcoin and DeFi liquidity as borrowing costs decline.

The UK Financial Conduct Authority has proposed simplified retail investment rules, aiming to increase household market participation. Easier access to investment products may drive more capital into CRYPTO assets and related ETFs.

Tether's USD₮ stablecoin has been approved as a fiat-backed token in Abu Dhabi Global Market, expanding its institutional use across major blockchains. This enhances stablecoin credibility and could support DeFi and cross-border crypto flows.

The Stablecoin Standards Authority has called for coordinated U.S. action on the GENIUS Act and USDT risks, emphasizing the need for robust frameworks. This could impact stablecoin trust and liquidity in crypto markets.

South Korea is set to introduce a no-fault compensation law for crypto exchanges, mandating full reimbursement for users affected by hacks. This policy may increase user confidence and trading activity on Korean crypto platforms.

Cryptocurrency Regulatory Trends

South Korea will introduce a no-fault compensation law for crypto exchanges, requiring full reimbursement for users affected by hacks or system failures, aligning liability standards with banks and boosting investor confidence.

The US CFTC has assumed oversight of the spot crypto market, marking the first time spot crypto products can be traded on federally regulated markets, which is expected to increase institutional participation and market legitimacy.

The Stablecoin Standards Authority has urged US regulators to coordinate GENIUS Act implementation and enhance KYC for on-chain nodes, aiming to strengthen risk-based regulation of dollar-pegged stablecoins and address offshore USDT risks.

Tether's USD₮ stablecoin has been approved as a Fiat-Backed Token by Abu Dhabi Global Market, allowing regulated institutions to offer compliant services on multiple blockchains, which may drive further adoption of regulated stablecoins.

JPMorgan CEO Jamie Dimon called for improved stablecoin functionality in international payments, highlighting the growing regulatory focus on using digital assets to streamline cross-border transactions and enhance global financial efficiency.

Zcash (ZEC): Zcash surged 12.5% in 24h, reaching $387.8 with $991M volume. The rally is driven by traders betting on a December rebound and increased long positions amid privacy coin demand.

SPX6900 (SPX): SPX6900 jumped 11.8% in 24h to $0.69, with $25.6M volume. The price spike is fueled by renewed meme coin interest and high Solana ecosystem activity, attracting speculative flows.

CC (CC): CC saw a notable increase in DeFi activity as PancakeSwap's USDT-CC pool now produces 200,000 CC daily, boosting liquidity and user engagement despite low overall trading volume.

Smart Money Movements

Strategy (formerly MicroStrategy) acquired 10,624 BTC for $962.7 million at an average price of $90,615 per Bitcoin, raising its total holdings to 660,624 BTC as of December 7, 2025.

BitMine Immersion Technologies increased its Ethereum holdings by 138,452 ETH last week, investing approximately $435 million and bringing its total to 3,864,951 ETH, now controlling about 3.2% of ETH supply.

Harvard University raised its Bitcoin ETF holdings from $117 million to $443 million in Q3 2025, allocating twice as much to Bitcoin as to gold, with GOLD ETF holdings at $235 million.

Smart money investors opened $426 million in long positions on Ethereum, signaling strong bullish sentiment and targeting a potential breakout near the $4,000 level.

A major AAVE whale accumulated 333,000 AAVE (about $62.6 million) via leveraged loans, while Multicoin Capital purchased 338,000 AAVE (about $65.3 million), indicating renewed institutional interest in DeFi lending.

Events to Watch

Dec 8 (Mon)

Further Network Summit takes place in Abu Dhabi; STABLE unlocks 18 billion tokens worth $566 million, impacting market liquidity.

Dec 9 (Tue)

Federal Reserve meeting begins, setting stage for key interest rate decision; Linea airdrop claim window closes, with unclaimed tokens redirected to ecosystem projects.

Dec 10 (Wed)

Federal Reserve announces interest rate decision and releases economic projections at 2 p.m. ET, followed by Chair Powell's press conference; EigenLayer unlocks $10 million in tokens; Linea and BC.GAME host major events in Abu Dhabi.

Dec 11 (Thu)

US Producer Price Index (PPI) data for October is released, providing key inflation insights; Swiss National Bank announces monetary policy decision.

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