Crypto Market Slides as BTC, ETH Drop; Regulatory Pressure Rises

I. Crypto Market Overview

Key Takeaways

Macro Environment

Gold and silver hit record highs amid global uncertainty, reinforcing demand for hard assets. The Federal Reserve is expected to keep rates steady in January, supporting current liquidity. Hong Kong, Spain, and Russia are tightening crypto regulations, increasing compliance costs and market oversight.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with BTC down 4.4% to $97,474 and ETH falling 9.3% to $3,144, pressured by ETF outflows and weak risk sentiment. Altcoins also dropped, with DoubleZero down 9.5%, Merlin Chain off 2.2%, while Maple Finance bucked the trend, rising 1.3% on DeFi lending growth.

Today's Outlook

Key events today include the start of Black Panther DeFi incentivized activities and the conclusion of TOK Coin community voting, both likely to drive sector-specific volatility. The US Federal Reserve will release its balance sheet data, which could impact the USD index and risk assets, including crypto.

Fear and Greed Index

52.00% Annual Percentile

28 Fear

Total Crypto Market Cap

$2.93T

0.77%

Total Market Trading Volume

$65.78B

11.47%

Altcoin Season Index

18.18%

Quarterly Percentile

16 / 100

Total Futures Market Open Interest

3.37B

0.09%

Futures

711.36B

1.62%

Perpetuals

II. Industry Updates

Macro-economic Policies

Gold surged to a record $4,525 per ounce, driven by global liquidity and macroeconomic uncertainty, reinforcing its role as a safe-haven asset and impacting crypto market sentiment.

Spot silver broke above $74 per ounce for the first time, gaining 3% in a day and over $45 year-to-date, highlighting increased demand for hard assets amid inflation concerns, which may boost DeFi collateralization.

The Federal Reserve is expected to keep interest rates unchanged in January 2026, with an 84.5% probability, maintaining a cautious stance that sustains current liquidity conditions for crypto markets.

Tokyo's inflation rate eased to 2.3% in December, but remains above the Bank of Japan's 2% target, suggesting continued monetary tightening that could influence yen-denominated crypto trading and cross-border flows.

China's GFEX imposed new trading limits on platinum and palladium contracts after extreme price volatility, reflecting heightened risk aversion in commodities that may spill over into crypto asset volatility.

Cryptocurrency Regulatory Trends

Hong Kong has implemented stricter regulations for virtual asset traders and custodians, requiring enhanced private key security and operational standards. This move aims to boost institutional confidence and market liquidity.

Spain will fully enforce the EU's MiCA crypto regulations by July 1, 2026, and the DAC8 tax directive from January 1, 2026, mandating comprehensive compliance and tax reporting for crypto firms, impacting market access and transparency.

Lithuania's central bank has set a December 31, 2025 deadline for crypto firms to obtain MiCA licenses, warning that unlicensed operations will face fines, website blocks, or criminal prosecution, increasing regulatory pressure on the sector.

Russia is preparing to launch regulated crypto trading by July 1, 2026, with major exchanges developing compliant infrastructure. The framework will limit retail access and prohibit crypto payments, signaling a shift toward formal market oversight.

The EU's DAC8 directive, effective January 1, 2026, will require crypto service providers to report user and transaction data to tax authorities, granting powers for cross-border asset seizure and increasing compliance costs for the industry.

DoubleZero (2Z): DoubleZero surged 9.3% in 24h with $52.6M trading volume and $1.61B TVL, driven by strong demand for its low-latency Solana-based infrastructure and increased staking activity.

Maple Finance (SYRUP): Maple Finance rose 9.0% in 24h, reaching $26.3M in volume and $386.7M market cap, fueled by DeFi lending growth and protocol upgrades attracting new institutional capital.

Merlin Chain (MERL): Merlin Chain gained 4.8% in 24h with $40.4M volume and $491M market cap, supported by expanding Layer 2 adoption and recent mainnet developments in the Bitcoin ecosystem.

Smart Money Movements

Crypto investor Winslow Strong deposited $47.22 million in assets to Coinbase, including 1,900 ETH ($5.59M), 307 cbBTC ($26.93M), and $14.7M USDC, 8 hours ago.

A whale transferred $299.9 million in USDC between unidentified wallets, raising security concerns due to the lack of transparency in the transaction.

Trend Research, part of LD Capital, purchased over 46,000 ETH worth $137 million during a market downturn, positioning for a potential 2026 bull market.

A trader opened new short positions with 353.37 BTC ($30.84M) and 590.14 AAVE ($87,900) using 10x leverage, signaling a bearish outlook on both assets.

MicroStrategy increased its Bitcoin holdings to 227,000 BTC since last Christmas, surpassing the total annual Bitcoin production and reinforcing its aggressive accumulation strategy.

Events to Watch

Dec 26 (Fri)

Black Panther BLACK DeFi Incentivized Activities begin; Tok Coin community voting on listing strategy and pricing concludes; Hamster Kombat HMSTR unlocks 11.41M tokens.

Dec 26 (Fri)

The US Federal Reserve releases its balance sheet data, which may impact the USD index and crypto market risk assets.

Dec 28 (Sun)

Meme coin $EUROPE launches on Solana with a 1,000,000 token airdrop to the first 4,000 wallet addresses.

Dec 29 (Mon)

US Federal Reserve to release H.8 bank assets, H.15 interest rates, H.10 FX rates, commercial paper, and delayed daily/weekly statistical data.

Dec 29 (Mon)

Treehouse unlocks 11.25M TREE tokens (5.45% of supply); Humanity Protocol completes 105M H token unlock ($15.29M, 4.8% of supply).

Table of Contents

I. Crypto Market Overview

Key Takeaways

Macro Environment

Crypto Market

Today's Outlook

II. Industry Updates

Macro-economic Policies

Gold surged to a record $4,525 per ounce, driven by global liquidity and macroeconomic uncertainty, reinforcing its role as a safe-haven asset and impacting crypto market sentiment.

Spot silver broke above $74 per ounce for the first time, gaining 3% in a day and over $45 year-to-date, highlighting increased demand for hard assets amid inflation concerns, which may boost DeFi collateralization.

The Federal Reserve is expected to keep interest rates unchanged in January 2026, with an 84.5% probability, maintaining a cautious stance that sustains current liquidity conditions for crypto markets.

Tokyo's inflation rate eased to 2.3% in December, but remains above the Bank of Japan's 2% target, suggesting continued monetary tightening that could influence yen-denominated crypto trading and cross-border flows.

China's GFEX imposed new trading limits on platinum and palladium contracts after extreme price volatility, reflecting heightened risk aversion in commodities that may spill over into crypto asset volatility.

Cryptocurrency Regulatory Trends

Hong Kong has implemented stricter regulations for virtual asset traders and custodians, requiring enhanced private key security and operational standards. This move aims to boost institutional confidence and market liquidity.

Spain will fully enforce the EU's MiCA crypto regulations by July 1, 2026, and the DAC8 tax directive from January 1, 2026, mandating comprehensive compliance and tax reporting for crypto firms, impacting market access and transparency.

Lithuania's central bank has set a December 31, 2025 deadline for crypto firms to obtain MiCA licenses, warning that unlicensed operations will face fines, website blocks, or criminal prosecution, increasing regulatory pressure on the sector.

Russia is preparing to launch regulated crypto trading by July 1, 2026, with major exchanges developing compliant infrastructure. The framework will limit retail access and prohibit crypto payments, signaling a shift toward formal market oversight.

The EU's DAC8 directive, effective January 1, 2026, will require crypto service providers to report user and transaction data to tax authorities, granting powers for cross-border asset seizure and increasing compliance costs for the industry.

Trending Tokens

DoubleZero (2Z): DoubleZero surged 9.3% in 24h with $52.6M trading volume and $1.61B TVL, driven by strong demand for its low-latency Solana-based infrastructure and increased staking activity.

Maple Finance (SYRUP): Maple Finance rose 9.0% in 24h, reaching $26.3M in volume and $386.7M market cap, fueled by DeFi lending growth and protocol upgrades attracting new institutional capital.

Merlin Chain (MERL): Merlin Chain gained 4.8% in 24h with $40.4M volume and $491M market cap, supported by expanding Layer 2 adoption and recent mainnet developments in the Bitcoin ecosystem.

Smart Money Movements

Crypto investor Winslow Strong deposited $47.22 million in assets to Coinbase, including 1,900 ETH ($5.59M), 307 cbBTC ($26.93M), and $14.7M USDC, 8 hours ago.

A whale transferred $299.9 million in USDC between unidentified wallets, raising security concerns due to the lack of transparency in the transaction.

Trend Research, part of LD Capital, purchased over 46,000 ETH worth $137 million during a market downturn, positioning for a potential 2026 bull market.

A trader opened new short positions with 353.37 BTC ($30.84M) and 590.14 AAVE ($87,900) using 10x leverage, signaling a bearish outlook on both assets.

MicroStrategy increased its Bitcoin holdings to 227,000 BTC since last Christmas, surpassing the total annual Bitcoin production and reinforcing its aggressive accumulation strategy.

Events to Watch

Dec 26 (Fri)

Dec 26 (Fri)

Dec 29 (Mon)

Dec 29 (Mon)

III. Phemex Market Focus

New Listings

Phemex Promotions