Crypto Market Slides as BTC and ETH Drop; Regulatory Shifts Ahead

I. Crypto Market Overview

Key Takeaways

Macro Environment

The SEC will introduce a crypto 'Innovation Exemption' in January 2026, potentially accelerating product launches. US regulators are expediting stablecoin rules under the GENIUS Act, increasing compliance for issuers. Polymarket's CFTC-approved US app launch boosts institutional confidence in blockchain-based prediction markets.

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, pressured by weak risk sentiment and ETF outflows. Altcoins also fell, with CRV down 7.59%, TAO 6.67%, and SKY 9.07%, despite recent DeFi and AI sector activity.

Today's Outlook

Today's notable events include multiple governance calls and protocol updates, such as Rocket Pool's node upgrade ahead of the Ethereum Fusaka hard fork, and community AMAs for major DeFi and infrastructure projects, which may drive short-term volatility and user engagement.

Fear and Greed Index

92.00% Annual Percentile

22 Fear

Total Crypto Market Cap

$3.15T

0.04%

Total Market Trading Volume

$148.45B

12.49%

Altcoin Season Index

16.67%

Quarterly Percentile

21 / 100

Total Futures Market Open Interest

3.97B

7.64%

Futures

803.04B

4.16%

Perpetuals

II. Industry Updates

Macro-economic Policies

Asian markets opened mixed as the US dollar weakened ahead of the Federal Reserve's upcoming rate decision, increasing volatility in crypto markets and impacting BTC and DeFi liquidity.

US weekly jobless claims fell to 191,000, signaling a stronger labor market and supporting risk-on sentiment in crypto assets, with potential for increased capital inflows into BTC and altcoins.

Revelio Labs forecasts a 9,000 decline in US nonfarm payrolls for November, indicating labor market contraction that could heighten expectations for Fed rate cuts, influencing BTC price volatility.

Turkey's latest inflation data shows a 31.07% annual rate, driving a 35.91% rental increase for commercial properties, which may pressure local fiat and boost stablecoin demand in Turkish crypto markets.

Fitch raised India's FY26 GDP growth forecast to 7.4% on strong domestic demand, supporting positive sentiment for INR-denominated crypto trading and potentially increasing DeFi activity in the region.

Cryptocurrency Regulatory Trends

Polymarket has launched its US app after receiving CFTC approval, marking a regulatory milestone for prediction markets and boosting institutional confidence in blockchain-based event trading.

The SEC is set to introduce an "Innovation Exemption" for crypto firms in January 2026, aiming to ease regulatory burdens and potentially accelerate new product launches and market participation.

US regulators are expediting the implementation of the GENIUS Act, with the FDIC expected to propose stablecoin issuer rules by year-end, increasing compliance requirements and market oversight.

Citadel Securities has formally opposed broad regulatory exemptions for DeFi trading of tokenized equities, urging the SEC to apply traditional exchange and broker-dealer rules to DeFi protocols, which may limit DeFi innovation in the US.

The SEC is reviewing proposals to allow FLEX options on BlackRock’s Bitcoin ETF (IBIT), which could enhance risk management tools and liquidity for institutional crypto investors if approved.

Curve DAO (CRV): CRV surged 8.5% in 24h with $127M volume, driven by renewed DeFi activity and increased stablecoin trading on Curve's AMM platform.

Bittensor (TAO): TAO rose 6.4% in 24h, reaching $327, as AI token demand grows and network participation increases, with $199M in daily trading volume.

SKY (SKY): SKY gained 15.3% in 24h, supported by $26.7M volume, as interest in decentralized internet and hardware-based peer-to-peer networks accelerates.

Smart Money Movements

BlackRock CEO Larry Fink revealed that unnamed sovereign funds increased Bitcoin purchases as the price dropped from $126,000 to the $80,000 range, aiming for long-term holdings.

Genius Group acquired 42 BTC at an average price of $89,700, raising its total holdings to 180 BTC, and realized a $1 million profit by selling 62 BTC at $108,000 in Q4.

Bitmine invested $150 million in Ethereum, withdrawing $92 million and $58 million in ETH from Kraken and Bitgo via two new wallets, continuing its accumulation strategy.

A newly created wallet withdrew 538.42 BTC, worth approximately $50.12 million, from Galaxy Digital, signaling significant fund movement within the crypto sector.

Hyperliquid Strategies transferred 12 million HYPE tokens, valued at $411 million and representing 3.54% of circulating supply, to Hypercore and initiated staking through multiple wallets.

Events to Watch

Dec 5 (Fri)

The US Bureau of Economic Analysis will release the October Personal Consumption Expenditures (PCE) Price Index, a key inflation indicator.

Dec 8 (Mon)

Abu Dhabi Finance Week begins, featuring over 60 events and 750 speakers; Bitcoin MENA Conference opens at ADNEC Centre, with Michael Saylor and CZ among speakers.

Dec 9 (Tue)

Ethereum Fusaka upgrade mini-upgrade will increase blob target and maximum capacity; Tokenized Capital Summit at Sheraton Abu Dhabi focuses on tokenized real-world assets; Bitcoin-focused firm Twenty One to list on NYSE.

Dec 10 (Wed)

US November Employment Situation Report will be released, providing critical labor market insights; Global Blockchain Show starts in Abu Dhabi, highlighting blockchain opportunities.

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