I. Crypto Market Overview

Key Takeaways

1.

Macro Environment

The Federal Reserve's recent 25bp rate cut to 3.5%-3.75% and dovish FOMC minutes signal ongoing support for risk assets. India's continued rate cuts and benign inflation boost regional crypto flows. China's move to pay interest on digital yuan aims to accelerate CBDC adoption and may impact stablecoin demand in Asia.
2.

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 weak risk sentiment. Altcoins also dropped, with ZEC down 3.97%, HYPE down 3.60%, and CC plunging 15.06%. Capital rotation and upcoming token unlocks contributed to volatility.
3.

Today's Outlook

Key U.S. labor and wage data releases today may drive volatility across crypto markets, as traders assess Fed policy direction. Significant token unlocks for SUI, ENA, and HYPE this week could increase supply and impact prices, with over $450M in unlocks scheduled.
Fear and Greed Index
98.00% Annual Percentile
29 Fear
Total Crypto Market Cap
$2.98T
1.01%
Total Market Trading Volume
$90.05B
22.52%
Altcoin Season Index
72.73%
Quarterly Percentile
19 / 100
Total Futures Market Open Interest
2.62B
4.10%
Futures
723.60B
12.32%
Perpetuals

II. Industry Updates

Macro-economic Policies

1.

The Federal Reserve cut the federal funds rate by 25 basis points to 3.50%-3.75%, citing ongoing economic concerns. This move is expected to support risk-on assets, potentially increasing Bitcoin and Ethereum liquidity as borrowing costs decrease.

2.

FOMC meeting minutes reveal officials are open to further rate cuts if inflation continues to decline and labor market risks persist. This dovish stance may boost DeFi activity and altcoin trading by improving overall market sentiment.

3.

The Fed confirmed that reserve balances are now adequate and removed the cap on standing repo operations, aiming to maintain ample liquidity. This policy supports stable monetary conditions, which can benefit crypto market liquidity and risk appetite.

4.

India's retail inflation remained within the Reserve Bank's comfort zone, leading to cumulative rate cuts of 125 basis points in 2025. Lower rates and benign inflation are likely to enhance capital flows into digital assets and support crypto market growth in the region.

5.

China's central bank will allow commercial banks to pay interest on digital yuan holdings from January 2026, transitioning e-CNY from digital cash to a digital deposit currency. This policy could increase CBDC adoption and influence stablecoin demand in Asia's crypto markets.

Cryptocurrency Regulatory Trends

1.

The U.S. SEC has adopted a pro-growth crypto regulatory policy, expediting approvals for exchange-traded products and supporting tokenization, which is expected to boost institutional adoption and market liquidity.

2.

Circle minted $1 billion USDC on Solana as part of a $2 billion stablecoin surge, reflecting strong demand and regulatory clarity for stablecoins, which enhances digital dollar liquidity in crypto markets.

3.

A Turkish anti-money laundering probe has expanded to the crypto sector, with high-profile arrests and judicial involvement, signaling stricter enforcement and increased compliance risks for crypto platforms.

4.

A South Korean court sentenced a crypto exchange employee to four years for selling secrets to North Korea, demonstrating the effectiveness of enhanced crypto AML regulations and their impact on illicit activity tracking.

5.

Global crypto tax reporting under CARF rules begins January 1, 2026, in 48 jurisdictions including the UK and EU, requiring platforms to collect tax residency data and report transactions, increasing compliance obligations.

Trending Tokens

1.

Hyperliquid (HYPE): HYPE surged over 7% in 24h, driven by news of a 1.2M token unlock scheduled for January 6 and record $68.8B 24h DEX volume, with whales actively trading large positions.

2.

Zcash (ZEC): ZEC gained over 26% in the past 24h, fueled by a $4.12M withdrawal from Kraken, shrinking exchange supply, and technical breakout above $528, with price compressing near $535.

3.

Canton (CC): CC rose 18% in 24h, ranking among top gainers with $42M trading volume, as capital rotated into mid-cap altcoins amid broader market volatility and increased speculative activity.

Smart Money Movements

1.

Bitmine increased its Ethereum stake by acquiring 118,944 ETH worth $352.16 million, bringing total holdings to 461,504 ETH as of December 31, 2025.

2.

A whale transferred 129.33 BTC valued at $11.41 million from anonymous addresses to Gemini on December 31, 2025, highlighting ongoing large-scale Bitcoin movements.

3.

Bitcoin saw a $415 million purchase involving 4,658 BTC on December 30, 2025, with 3,858 BTC and 800 BTC withdrawn from Coinbase to unknown addresses, indicating strong buying activity.

4.

A large wallet transferred 24,544 ETH, valued at $72.85 million, to the Ethereum 2.0 staking contract on December 30, 2025, reflecting continued major staking activity.

5.

Cypherpunk acquired $29 million in Zcash, adding 56,418 ZEC to its holdings and increasing its total to over 290,000 ZEC, representing 1.7% of Zcash's circulating supply.

Events to Watch

Dec 31 (Wed)

U.S. Department of Labor will release jobless claims data; December hourly wages data to be published at 9:45 am, both key for Fed policy and crypto volatility.

Dec 31 (Wed)

Kamino (KMNO), Ethena (ENA), and Renzo (REZ) will unlock new token supplies, potentially increasing market volatility and affecting token prices.

Jan 1 (Thu)

Sui (SUI) will unlock 43.69 million tokens as part of its monthly vesting; GPS will unlock 707.87 million tokens ($3.47M), impacting circulating supply.

Jan 6 (Tue)

Hyperliquid Labs will distribute 1.2 million HYPE tokens (~$31.6M) to team wallets, starting a 24-month vesting plan and increasing token supply.

III. Phemex Market Focus

New Listings

1.

Dec 30: (LIT/USDT)

Lighter(LIT) spot trading pair now available on Phemex
2.

Dec 30: (OOOO/USDT)

Introducing oooo(OOOO) in the Spot Innovation Zone
3.

Dec 29: (MAGMA/USDT)

Magma Finance(MAGMA) spot trading pair now available on Phemex

Phemex Promotions

1.

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2.

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3.

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4.

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