Crypto Market Slides: BTC and ETH Drop, Major Token Unlocks Drive Volatility

I. Crypto Market Overview

Key Takeaways

Macro Environment

The US Federal Reserve's ongoing quantitative easing and surging debt payments are fueling inflation concerns, driving demand for Bitcoin and stablecoins. Spain, Russia, and Ghana are advancing comprehensive crypto regulations, increasing compliance costs and transparency. Persistent US dollar weakness and macro uncertainty are supporting Bitcoin's safe-haven narrative and influencing global capital flows.

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 risk-off sentiment. Altcoins also dropped sharply; Canton Network (CC) led losses at -15.06%, followed by FET (-12.59%) and ARB (-11.73%), as institutional demand waned and volatility rose ahead of major token unlocks.

Today's Outlook

Today, Pi Network will unlock 8.7 million PI tokens ($1.76M) and Humanity Protocol will release 4.79% of its supply at 12 AM UTC, potentially increasing market volatility. Newton Protocol and Nillion will also unlock 6.25 million and 10.84 million tokens respectively, which may drive short-term volatility in their respective markets.

Fear and Greed Index

28.00% Annual Percentile

27 Fear

Total Crypto Market Cap

$2.95T

0.22%

Total Market Trading Volume

$74.28B

26.80%

Altcoin Season Index

18.18%

Quarterly Percentile

16 / 100

Total Futures Market Open Interest

3.37B

2.12%

Futures

730.54B

7.12%

Perpetuals

II. Industry Updates

Macro-economic Policies

The US Federal Reserve has resumed stealth quantitative easing, purchasing $40 billion in Treasuries monthly, which is expected to reshape inflation expectations and drive investors toward Bitcoin as a hedge against monetary instability.

US interest payments on national debt have surpassed $1 trillion in 2025, fueling concerns over fiscal sustainability and increasing the appeal of stablecoins and Bitcoin as alternatives to traditional assets amid rising debt-driven inflation risks.

The US dollar index closed at 97.941, reflecting minor currency fluctuations; ongoing dollar weakness and macro uncertainty are supporting Bitcoin's safe-haven narrative and influencing capital flows into major cryptocurrencies.

A recent Visa survey shows 28% of US adults are interested in receiving crypto as holiday gifts due to inflation concerns, highlighting growing mainstream adoption and potential for increased retail inflows into digital assets.

Elon Musk predicts double-digit US GDP growth within 12–18 months, signaling optimism for economic expansion; such growth could boost risk appetite and liquidity, positively impacting Bitcoin and DeFi market activity.

Cryptocurrency Regulatory Trends

Spain will enforce the EU's MiCA and DAC8 crypto regulations in 2026, requiring all crypto service providers to obtain full licenses and report user transactions to tax authorities, increasing compliance costs and reducing anonymity for investors.

The U.S. SEC and regulators are expanding retail investor access to crypto products, including streamlined approval for spot crypto ETFs and plans to allow retirement accounts to invest in digital assets, boosting market participation but raising risk assessment challenges.

Russia's central bank has outlined new crypto investment rules, introducing annual investment caps for retail investors and requiring all transactions to go through licensed intermediaries, aiming for full implementation by July 2026 to enhance oversight and investor protection.

Ghana has passed the Virtual Asset Service Providers Bill, establishing a legal framework for crypto regulation and requiring licensing or registration for digital asset firms, signaling a shift from previous bans to formal oversight and user protection.

The U.K. Financial Conduct Authority has approved new crypto service providers, such as Sling MONEY, reflecting a trend of increased regulatory scrutiny and formal licensing for stablecoin-based payment platforms as they expand across Europe.

Canton Network (CC): CC surged 12.7% in 24h with $115.9M volume, driven by strong institutional adoption and its scalable Layer 1 smart contract platform for RWAs and TradFi.

PIPPIN (PIPPIN): PIPPIN rose 9.2% in 24h, reaching a $504M market cap and $101.8M volume, fueled by AI-driven community engagement and a recent all-time high.

Conflux (CFX): CFX gained 7.4% in 24h with $53.7M trading volume, supported by its scalable Layer 1 blockchain, cross-chain interoperability, and increased DeFi activity.

Smart Money Movements

Grayscale Bitcoin Trust (GBTC) recorded a $24.6 million net outflow on December 24, with additional outflows from BITB ($13.3M), ARKB ($9.9M), and HODL ($8M), reflecting continued institutional withdrawals.

BlackRock deposited 2,292 BTC (about $199.8 million) and 9,976 ETH (about $29.23 million) to Coinbase on December 24, totaling $229.03 million in digital assets.

A Bitcoin whale transferred 2,188 BTC, valued at approximately $191 million, to a new wallet on December 24, indicating significant on-chain movement by a major holder.

Ethereum whales accumulated 100,000 ETH worth $290 million, with Fasanara Capital and Bitmine employing leveraged strategies and withdrawing assets from exchanges, signaling long-term holding intentions.

Trump Media transferred 560 BTC, valued at about $49 million, to Coinbase on December 24, marking its first exchange movement since acquiring 11,542 BTC in July.

Events to Watch

Dec 25 (Thu)

Pi Network will unlock 8.7 million PI tokens ($1.76M); Humanity Protocol unlocks 4.79% of supply at 12 AM UTC, potentially increasing market volatility.

Dec 25 (Thu)

Newton Protocol unlocks 6.25 million tokens; Nillion unlocks 10.84 million tokens, both events may drive short-term volatility in their respective markets.

Dec 28 (Sun)

Bitcoin Munari's BTCM token begins public trading after presale; AltLayer airdrop claim deadline at 08:00 UTC, impacting token distribution.

Table of Contents

I. Crypto Market Overview

Key Takeaways

Macro Environment

Crypto Market

Today's Outlook

II. Industry Updates

Macro-economic Policies

The US Federal Reserve has resumed stealth quantitative easing, purchasing $40 billion in Treasuries monthly, which is expected to reshape inflation expectations and drive investors toward Bitcoin as a hedge against monetary instability.

US interest payments on national debt have surpassed $1 trillion in 2025, fueling concerns over fiscal sustainability and increasing the appeal of stablecoins and Bitcoin as alternatives to traditional assets amid rising debt-driven inflation risks.

The US dollar index closed at 97.941, reflecting minor currency fluctuations; ongoing dollar weakness and macro uncertainty are supporting Bitcoin's safe-haven narrative and influencing capital flows into major cryptocurrencies.

A recent Visa survey shows 28% of US adults are interested in receiving crypto as holiday gifts due to inflation concerns, highlighting growing mainstream adoption and potential for increased retail inflows into digital assets.

Elon Musk predicts double-digit US GDP growth within 12–18 months, signaling optimism for economic expansion; such growth could boost risk appetite and liquidity, positively impacting Bitcoin and DeFi market activity.

Cryptocurrency Regulatory Trends

Spain will enforce the EU's MiCA and DAC8 crypto regulations in 2026, requiring all crypto service providers to obtain full licenses and report user transactions to tax authorities, increasing compliance costs and reducing anonymity for investors.

The U.S. SEC and regulators are expanding retail investor access to crypto products, including streamlined approval for spot crypto ETFs and plans to allow retirement accounts to invest in digital assets, boosting market participation but raising risk assessment challenges.

Russia's central bank has outlined new crypto investment rules, introducing annual investment caps for retail investors and requiring all transactions to go through licensed intermediaries, aiming for full implementation by July 2026 to enhance oversight and investor protection.

Ghana has passed the Virtual Asset Service Providers Bill, establishing a legal framework for crypto regulation and requiring licensing or registration for digital asset firms, signaling a shift from previous bans to formal oversight and user protection.

The U.K. Financial Conduct Authority has approved new crypto service providers, such as Sling MONEY, reflecting a trend of increased regulatory scrutiny and formal licensing for stablecoin-based payment platforms as they expand across Europe.

Trending Tokens

Canton Network (CC): CC surged 12.7% in 24h with $115.9M volume, driven by strong institutional adoption and its scalable Layer 1 smart contract platform for RWAs and TradFi.

PIPPIN (PIPPIN): PIPPIN rose 9.2% in 24h, reaching a $504M market cap and $101.8M volume, fueled by AI-driven community engagement and a recent all-time high.

Conflux (CFX): CFX gained 7.4% in 24h with $53.7M trading volume, supported by its scalable Layer 1 blockchain, cross-chain interoperability, and increased DeFi activity.

Smart Money Movements

Grayscale Bitcoin Trust (GBTC) recorded a $24.6 million net outflow on December 24, with additional outflows from BITB ($13.3M), ARKB ($9.9M), and HODL ($8M), reflecting continued institutional withdrawals.

BlackRock deposited 2,292 BTC (about $199.8 million) and 9,976 ETH (about $29.23 million) to Coinbase on December 24, totaling $229.03 million in digital assets.

A Bitcoin whale transferred 2,188 BTC, valued at approximately $191 million, to a new wallet on December 24, indicating significant on-chain movement by a major holder.

Ethereum whales accumulated 100,000 ETH worth $290 million, with Fasanara Capital and Bitmine employing leveraged strategies and withdrawing assets from exchanges, signaling long-term holding intentions.

Trump Media transferred 560 BTC, valued at about $49 million, to Coinbase on December 24, marking its first exchange movement since acquiring 11,542 BTC in July.

Events to Watch

Dec 25 (Thu)

Dec 25 (Thu)

Dec 28 (Sun)

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