Crypto Market Slides as BTC, ETH Lead Declines; UK Recognizes Crypto as Property

I. Crypto Market Overview

Key Takeaways

Macro Environment

The US dollar index has declined for nine days as markets anticipate a Fed rate cut, boosting risk appetite. China's yuan has strengthened nearly 4% in 2025, reducing local crypto demand amid strict PBoC policies. The US FDIC will soon release its first stablecoin regulatory framework, enhancing clarity and institutional confidence.

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 spot demand. SUI, ENA, and PENGU dropped 10.83%, 9.88%, and 10.64% respectively, despite recent ecosystem and listing news, as risk-off sentiment dominated.

Today's Outlook

Key events today include the UK passing a bill recognizing crypto as property and Poland's president vetoing a major crypto market bill, both impacting regulatory clarity. No major token unlocks are scheduled for December 3, according to CoinMarketCap.

Fear and Greed Index

94.00% Annual Percentile

16 Fear

Total Crypto Market Cap

$3.15T

6.03%

Total Market Trading Volume

$170.93B

22.51%

Altcoin Season Index

16.67%

Quarterly Percentile

21 / 100

Total Futures Market Open Interest

3.89B

7.53%

Futures

808.68B

4.83%

Perpetuals

II. Industry Updates

Macro-economic Policies

US ADP employment unexpectedly fell by 32,000 in November, signaling labor market weakness and increasing expectations for a Federal Reserve rate cut, which could boost crypto market liquidity and risk appetite.

The US dollar index has declined for nine consecutive days as traders price in a high probability of a Fed rate cut at the December 9–10 FOMC meeting, supporting risk-on sentiment and positive momentum for Bitcoin and DeFi assets.

China's yuan has strengthened nearly 4% against the US dollar in 2025, reducing incentives for capital flight into Bitcoin, while strict PBoC policies continue to limit crypto demand from Chinese investors.

Australia's Q3 GDP grew by 0.4%, below forecasts, with persistent inflation and slow growth dampening risk sentiment; this may limit institutional flows into crypto from the region in the near term.

India's FY26 GDP growth outlook remains robust at 6.7% per OECD, driven by rising incomes and monetary easing, which could support regional crypto adoption and capital inflows into digital assets.

Cryptocurrency Regulatory Trends

The U.S. FDIC is set to release its first stablecoin regulatory framework under the GENIUS Act this month, introducing capital, liquidity, and reserve requirements for issuers. This move is expected to boost regulatory clarity and institutional confidence in the U.S. stablecoin market.

Ethereum's stablecoin supply has reached a record $174.95 billion, driven by recent U.S. regulatory reforms under the GENIUS Act, which have encouraged greater institutional participation and contributed to overall market growth.

XRP has been integrated with Apple Pay and Google Pay in over 40 countries, following Ripple's legal victory over the SEC and acquisition of Hidden Road. This regulatory clarity and expanded access are strengthening retail and institutional adoption of XRP.

Poland's president has vetoed the Crypto Asset Market Bill, sparking political backlash and regulatory uncertainty. The bill, criticized for being stricter than EU MiCA rules, could impact Poland's crypto industry and investor sentiment.

Circle has launched native USDC and its Cross-Chain Transfer Protocol on Starknet, expanding stablecoin interoperability. This regulatory-compliant move enhances DeFi liquidity and signals growing acceptance of stablecoins in regulated environments.

SUI (SUI): SUI surged 18% in 24h with trading volume over $2B, driven by Coinbase enabling SUI trading for New York residents and strong ecosystem activity.

Ethena (ENA): ENA rose 15% in 24h with $422M volume, supported by a 21Shares Ethena ETP launch on major European exchanges and a sharp contraction in USDe supply.

Pudgy Penguins (PENGU): PENGU gained 12% in 24h with $365M volume, fueled by whale accumulation, support retests, and increased social media and NFT community engagement.

Smart Money Movements

BlackRock transferred 44,140 ETH worth $135.36 million to Coinbase Prime, coinciding with $88.7 million in net outflows from its Ethereum ETF and contributing to an 11% ETH price drop.

JPMorgan, Vanguard, and Bank of America accelerated Bitcoin adoption, with JPMorgan filing leveraged notes linked to BlackRock’s IBIT ETF and Vanguard opening its $11 trillion platform to Bitcoin ETFs, while retail investors withdrew $3.47 billion from Bitcoin ETFs.

A whale executed a $5.9 million transfer of 1,921.94 ETH from Kraken to an anonymous wallet, highlighting ongoing large-scale Ethereum movements.

Bitmine was suspected of purchasing 18,345 ETH valued at $54.94 million, reinforcing its position as a dominant Ethereum treasury holder.

A silent wallet acquired 3,296.57 ETH for $10 million at an average price of $3,035.27, making a significant on-chain purchase near a local market peak.

Events to Watch

Dec 3 (Wed)

UK passes bill recognizing crypto as property; Polish President vetoes crypto market bill; U.S. Import and Export Price Indexes released; Jupiter's DTF platform with HYPE integration launches; Hyperliquid Strategies merger approved.

Dec 4 (Thu)

BlackRock and Coinbase CEOs to discuss Bitcoin and crypto at New York Times event, offering insights from industry leaders.

Dec 5 (Fri)

US PCE Inflation Report and Trimmed Mean PCE Price Index released, key for Fed policy expectations and market sentiment.

Dec 8 (Mon)

Stable mainnet launches, backed by $1.1B in pre-deposits and USDT0 gas fee integration, marking a major DeFi infrastructure event.

Dec 9 (Tue)

Federal Reserve FOMC meeting begins, with markets anticipating a 25bps rate cut; final rate decision expected Dec 10.

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