Crypto Market Slides as BTC, ETH Lead Broad Selloff Ahead of Fed Decision

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve is widely expected to cut rates this week, with softer US inflation and weak jobs data reinforcing the case for monetary easing. The US CFTC's approval of spot crypto trading on regulated exchanges is set to boost institutional participation. Meanwhile, China reiterates its strict crypto ban, further suppressing domestic and cross-border market activity.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with Bitcoin up 1.33% to $90,858.05 and Ethereum up 3.16% to $3,130.67, as investors anticipated a potential Federal Reserve interest rate cut and reacted to Michael Saylor's Strategy (MicroStrategy) disclosing a $962.7 million Bitcoin purchase. Altcoins also dropped sharply; SPX6900 fell 12.38%, ENA lost 9.88%, and ZEC slid 3.97%. The downturn was driven by macro uncertainty and profit-taking ahead of key US economic events.

Today's Outlook

Today, the Bitcoin MENA Conference 2025 opens in Abu Dhabi, gathering over 200 speakers from 100+ countries and spotlighting institutional trends. China releases November trade data, which may impact global risk sentiment and crypto market volatility.

Fear and Greed Index

60.00% Annual Percentile

22 Fear

Total Crypto Market Cap

$3.07T

0.57%

Total Market Trading Volume

$105.78B

35.11%

Altcoin Season Index

0.00%

Quarterly Percentile

19 / 100

Total Futures Market Open Interest

4.35B

13.32%

Futures

770.61B

12.06%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Federal Reserve is expected to announce an interest rate cut this week, which could boost liquidity and support risk assets like Bitcoin and DeFi protocols by lowering the cost of capital and encouraging institutional inflows.

Recent U.S. economic data, including a weaker-than-expected ADP employment report and a core PCE inflation rate of 2.8%, reinforce expectations for imminent Fed monetary easing, potentially increasing volatility and upward momentum in crypto markets.

Persistent high U.S. bond yields and ongoing liquidity strains at smaller banks are fueling speculation about a possible return to Federal Reserve quantitative easing, which may enhance risk appetite and drive capital into digital assets.

India's central bank has cut its policy rate and injected significant liquidity to offset external shocks, a move that could stimulate emerging market capital flows and indirectly benefit crypto market liquidity and trading activity.

Cryptocurrency Regulatory Trends

Seven major Chinese financial associations jointly reiterated a strict ban on all crypto activities, including stablecoins and RWA tokenization, warning of risks to financial stability and reinforcing China's comprehensive prohibition. This move further suppresses market participation and deters both domestic and foreign crypto operations.

The U.S. CFTC has officially approved spot crypto trading on federally regulated exchanges, marking a historic milestone for BTC and ETH. This regulatory clarity is expected to boost institutional participation and improve market liquidity, potentially driving price volatility and increased trading volumes.

The European Union is advancing a proposal to centralize crypto regulation under ESMA, aiming to unify oversight across all member states. If implemented, this could raise compliance standards and costs for crypto firms, impacting market access and operational flexibility in the EU.

Poland failed to pass its crypto bill, leaving it as the only EU country without comprehensive crypto rules as MiCA takes effect. This regulatory gap may isolate Polish crypto businesses and limit their access to the broader European market.

SPX6900 (SPX): SPX6900 rose 4.2% in 24h with $23.4M volume, driven by a promotional event at Art Basel Miami and new listings, plus increased borrowing liquidity and Wintermute accumulation.

Ethena (ENA): ENA gained 3.2% in 24h with $236M volume; Ethena Labs withdrew 25M ENA ($7.05M) from Bybit, and TVL remains high at $6.7B, signaling strong protocol activity.

Zcash (ZEC): ZEC climbed 2.0% in 24h with $717M volume, supported by perpetual volume surge ($1.77B) and inclusion in HTX futures trading contest, boosting market interest.

Smart Money Movements

A Bitcoin OG increased their Ethereum long position to $165 million, holding 54,277.33 ETH at an average entry price of $3,048.31, after depositing an additional $60 million USDC into HyperLiquid.

Binance's Proof of Reserves report showed Bitcoin holdings rose by 23,768 BTC to 617,620 BTC, a 4% month-over-month increase, while USDT reserves reached a record $42.8 billion, indicating a shift toward Bitcoin accumulation.

A whale known as 'pension-USDT.eth' opened a 2x long position on 20,000 ETH, valued at $60.93 million, with an entry price of $3,040.92 per ETH, reflecting continued bullish sentiment on Ethereum.

Smart money on Hyperliquid increased net short positions on Ethereum by $2.8 million in the past 24 hours, bringing total net shorts to over $21 million, amid $75.2 million in net outflows from spot Ethereum ETFs.

A wallet linked to Wintermute accumulated $5.2 million in SYRUP tokens over two weeks, now holding 20.397 million SYRUP tokens valued at $6.1 million, after withdrawing from multiple exchanges.

Events to Watch

Dec 8 (Mon)

Bitcoin MENA Conference 2025 opens in Abu Dhabi, featuring 200+ speakers from 100+ countries; China releases November trade data, impacting global markets.

Dec 9 (Tue)

Linea airdrop deadline may trigger token sales; HSС Asset Management and TheBlock. Connect events take place in Abu Dhabi, focusing on digital assets.

Dec 10 (Wed)

US Federal Reserve holds final 2025 interest rate meeting, with potential rate cut decision; Linea token unlock; DAT SUMMIT and Helium Beach House events in Abu Dhabi.

Dec 11 (Thu)

Aztec Network hosts Discord Town Hall on token holder plans; GameFi Alliance, KOL Connect Meetup, and Web3 Gamers Hub events in Abu Dhabi.

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