THE LATEST CRYPTO NEWS

According to a new technical analysis, the Bitcoin price has returned to its “Crash Line,” fueling talk of a possible bullish turnaround. The expert behind this analysis has suggested that this is not a random event, but a deliberate move that could signal the beginning of Bitcoin’s next upward move.  Bitcoin Price Revisits Familiar Crash Line In a recent post on X, market analyst Crypto Tice announced that Bitcoin has just hit the Crash Line, a level that has repeatedly acted as a critical reload point during the current bull cycle. The analyst indicated that this trendline has historically led to strong price rallies for BTC. He observed that throughout the bull market, Bitcoin has consistently followed the same sequence each time the price returns to the Crash Line.  Related Reading: Crypto Market Watches As Clarity Act Enters Senate Debate Next Week: US Senator The process begins with momentum overheating, meaning buyers push prices up too quickly, creating unsustainable upward pressure. As this momentum builds, excessive leverage accumulates in the market, followed by a sharp correction. This price decline often brings Bitcoin back to the Crash Line. From this point, BTC usually starts gearing up for its next expansion phase.  Crypto Tice shared a weekly chart illustrating this pattern. Each time Bitcoin approached the Crash Line, its price corrected by about 33.10% and 30.97% before quickly surging higher. Now that Bitcoin has returned to the Crash Line after a recent 33.38% drop, the analyst suggested it could follow the same historical trend and launch a major rally.  Crypto Tice also noted that the Crash Line has consistently marked leverage flushes, selling-pressure exhaustion, and trend continuation zones for Bitcoin. Rather than signaling structural weakness, the analyst said this trendline has acted as a transition point. He noted that if the broader structure remains intact, the Crash Line could mark the area where Bitcoin’s upside reloads.  Analyst Predicts Next Possible Moves For Bitcoin In a separate X post, market expert Crypto King said that Bitcoin is currently “stuck in a no trading zone,” meaning that the market still lacks a clear direction despite its recent rebound above $90,000. The analyst added that BTC’s liquidity and market participation are drying up, particularly as price moves sideways and the risk of getting caught in false moves increases. As a result, Crypto King has outlined two possible scenarios for Bitcoin. If the cryptocurrency can push above $92,000 and hold that level, he expects it to flip from resistance into support. Related Reading: Bitcoin’s Next Peak Might Ignite ADA’s Rally, Says Cardano Creator On the other hand, if price fails to reclaim $92,000, the analyst predicts Bitcoin could decline again, this time testing the Chicago Mercantile Exchange (CME) gap at $88,000. The analyst has highlighted two potential demand zones on the chart: one around the CME gap and another extending lower between $60,000 and $50,000. Featured image from Unsplash, chart from TradingView

After a robust start to the year, Bitcoin (BTC) has encountered significant resistance that has hindered its recovery trajectory, resulting in a brief dip below the $90,000 mark over the last few days. As analysts evaluate the situation, they have identified crucial levels that will influence Bitcoin’s short-term price movements. Critical Bitcoin Price Levels In a recent post on social media platform X (formerly Twitter), market analyst Ted Pillows outlined three critical price points for Bitcoin in the short-term price action. The first key level to monitor is $89,200, which has served as a vital support.  Should the Bitcoin price fall below this threshold, Ted Pillows predicts a subsequent drop toward the $87,500 level. But beyond this, Pillows cautioned that if the $87,500 support is lost on a daily basis, it could signal a significant downward trend for the cryptocurrency’s price in the near-term. Related Reading: VanEck Predicts Bitcoin Could Reach $2.9 Million In New Long-Term Capital Report On the upside, the analyst suggested that Bitcoin needs to reclaim the $94,000 to $95,000 range to establish a positive momentum. Notably, a daily close above this level could pave the way for BTC to reach between $102,000 and $103,000.  Similarly, fellow analyst Ali Martinez emphasized the importance of the cryptocurrency’s price in maintaining its position above $87,200 to avoid a potential decline toward $69,230, which implies a potential 24% drop if this scenario materializes.  Currently, Bitcoin has experienced a slight uptick, reaching $91,390 at the time of writing, partly due to the US Supreme Court’s decision to delay a ruling on President Donald Trump’s tariffs case, an event anticipated to bring volatility to the cryptocurrency market. Bitfinex Whales’ Moves  Beyond technical analysis, there is a developing trend that many have overlooked. Bitfinex whales are apparently unwinding their BTC long holdings aggressively. Analysts such as Ash Crypto point out that this type of “unwind” has traditionally preceded significant market turbulence.  During a similar event in early 2025, the Bitcoin price stalled around the $74,000 level but subsequently experienced a major recovery rally of approximately 50%, surging to the $112,000 mark within just 43 days. Related Reading: 3 Vital Factors Needed For A Lasting 2026 Crypto Surge, Bitwise CIO Unveils Ash noted that this could suggest that a similar pattern could unfold potentially this month, targeting price levels of $135,000 or more in the near term, which could result in a new all-time high for the market’s leading cryptocurrency.  According to analysts, Bitfinex whales successfully relieve market pressure brought on by sizable clusters of long holdings when they “clear the books.” By lowering the market’s targets, price-hunting algorithms can more easily change the direction upward. Featured image from DALL-E, chart from TradingView.com 

The notorious crypto crash on October 10 of last year sent shockwaves through the market, resulting in the largest liquidation event in history with nearly $20 billion in losses. This catastrophic event ignited significant criticisms and fears among investors regarding the stability of the cryptocurrency market.  However, the upcoming crypto market structure bill, known as the CLARITY Act, is being touted as a potential safeguard against future crashes. Market Manipulation In Crypto Could Plummet  Market expert Crypto Rover recently took to social media to express optimism about the CLARITY Act as the Senate prepares for a markup on January 15. According to Rover, this crypto bill could reduce market manipulation in the crypto space by an impressive 70% to 80%.  Related Reading: 3 Vital Factors Needed For A Lasting 2026 Crypto Surge, Bitwise CIO Unveils He noted the devastating effects of the October 10 event, describing it as a “massacre” for crypto holders, many of whom lost their life savings without clear answers about who was ultimately responsible for the chaos. Rover is confident that with the implementation of the CLARITY Act, the cryptocurrency market could begin operating more like traditional financial markets (TradFi).  Institutional Investment Set To Surge  Once the CLARITY Act passes in the Senate, Rover asserts that it will move to the floor for a full vote before returning to the House for final approval and eventually reaching President Trump’s desk.  He further suggested that this entire process could take one to two months, potentially allowing the CLARITY Act to be signed into law by March 2026. Related Reading: VanEck Predicts Bitcoin Could Reach $2.9 Million In New Long-Term Capital Report Should this come to fruition, it is expected to open the floodgates for institutional investment in the crypto market, fundamentally changing the alleged “daily market manipulation” witnessed in the sector.  At the time of writing, Bitcoin is trading at $90,357, having erased some of the gains seen at the beginning of the week when the market’s leading crypto surged towards a two-month high of $94,800.  Featured image from DALL-E, chart from TradingView.com 

The cryptocurrency market recently experienced a brief uptick, but it has once again encountered increased volatility, with Bitcoin (BTC) and other major crypto assets retracting some of the gains achieved earlier in the week.  Amid this churning landscape, Matt Hougan, Chief Investment Officer at Bitwise, has outlined three essential “checkpoints for a rally,” which he believes must be met for a lasting cryptocurrency recovery this year. Key Hurdles For Crypto Rally  In the report released on January 6, Hougan highlighted the first hurdle for a sustained rally: avoiding a repeat of the catastrophic events that transpired on October 10, 2025. On that day, the market witnessed the largest liquidation event in its history, erasing approximately $19 billion in futures positions in just 24 hours.  Related Reading: Did Morgan Stanley Orchestrate Bitcoin October Crash? Analysts Draw Correlations The aftermath of this event raised concerns among investors about the potential long-term health of significant market players such as hedge funds and major market makers. Many feared that these entities might need to liquidate assets to stabilize their operations, a scenario that could weigh heavily on the market. However, Hougan expressed a degree of optimism, suggesting that if any major firm were poised for a downturn, it likely would have occurred by now. He argues that investors have begun to move past the traumatic experience of October 10, contributing to the recent rally at the start of the new year. The second checkpoint outlined by Hougan is the passage of the crypto market structure bill, known as the CLARITY Act, which is currently making its way through Congress with the anticipated markup scheduled for January 15.  This process involves aligning various drafts from the Senate banking and agriculture committees to reach a final vote. However, NewsBTC reported on Wednesday that several hurdles remain, including differing perspectives on how to regulate decentralized finance (DeFi) and stablecoin rewards.  Legislative Framework Essential Hougan emphasized that the approval of the CLARITY Act is crucial for the long-term viability of cryptocurrencies in the United States. Without a legislative framework, Hougan stressed that the current pro-crypto stance at regulatory agencies could shift dramatically under future administrations.  Bitwise’s CIO emphasized that passing the crypto market structure bill would solidify key regulatory principles into law, providing a sound foundation for ongoing growth in the crypto sector.  Related Reading: Dogecoin Rapid Accumulation Suggests Sharp Upward Sweep Is Coming The final hurdle for a sustained crypto rally is maintaining stability in the broader equity market. While cryptocurrencies do not operate in lockstep with stocks, a significant downturn—such as a 20% drop in the S&P 500—could dampen enthusiasm for all risk assets, including digital currencies.  Hougan also notes growing concerns about a potential artificial intelligence (AI) bubble. However, current prediction markets suggest a low probability of a recession in 2026 and an approximately 80% chance of gains for the S&P 500. Featured image from DALL-E, chart from TradingView.com

BitMEX's annual report details the impact of the Oct crash on market liquidity, basis trades and other key issues.

In the lead-up to the potential passage of the crypto market structure bill, known as the CLARITY Act, Faryar Shirzad, Chief Policy Officer at Coinbase, shed light on the ongoing discussions surrounding key provisions of the already enacted GENIUS Act.  GENIUS Act Under Fire Shirzad noted that the stablecoin rewards provisions of the GENIUS Act are currently a central topic of debate among lawmakers. Shiraz remarked, “reopening it now only creates uncertainty and risks the future of the US Dollar as commerce moves onchain.” Shirzad emphasized the importance of protecting the GENIUS Act, arguing that rewards benefit consumers without adversely affecting community banks. Related Reading: Solana Shatters Records: 2025 Annual Review Reveals New All-Time Highs In Key Metrics He alleged that the motivation behind banks’ opposition to stablecoin rewards is evident. He claimed that US banks currently generate approximately $176 billion annually from the $3 trillion they hold at the Federal Reserve (Fed) and another $187 billion from card swipe fees, which averages to nearly $1,440 for each household.  This results in over $360 billion yearly from payments and deposits, in addition to substantial unused lending capacity, as the Federal Reserve incentivizes banks to maintain reserves rather than deploy them. According to Shirzad, stablecoin rewards pose a challenge to these financial margins—not by impeding banks’ ability to lend, but by introducing real competition in payment systems.  Shirzad further expressed alarm at how, during these Senate discussions, China has recognized the opportunity presented by the bank lobby.  The country has recently announced interest payments to users of its Digital Yuan, aiming to undermine the supremacy of the US dollar. He warned that banning rewards in the Senate would inadvertently aid China’s efforts to challenge the dollar’s dominance. Concluding his remarks, Shirzad asserted that the opposition from banks toward stablecoin rewards is not based on prudential concerns but stems from a desire to protect lucrative revenue streams threatened by competition.  Deaton Critiques ABA’s Threat To Stablecoin Rewards John E. Deaton — attorney for XRP holders in the US Securities and Exchange Commission’s (SEC) lawsuit against Ripple Labs and a former Senate candidate — also reacted to these developments. He emphasized the importance of the situation as China officially began offering interest on the digital yuan.  He highlighted that the American Bankers Association (ABA) is exerting pressure on the Senate to close a “third-party loophole” in the GENIUS Act, which would restrict companies like Coinbase (COIN) and Kraken from offering rewards to consumers. Related Reading: Ethereum Staking Queue Grows: What Does This Mean For ETH Prices Moving Forward? Deaton argued that banning American firms from providing yield to everyday citizens does not protect banks, as claimed by the ABA; rather, it risks forcing global reliance on China’s currency over the US dollar.  He emphasized that major banks are threatened by the concept of digital dollars because they are unable to “rent” that money back to consumers if individuals are earning yield themselves. The criticism also extended to banking officials, with Deaton asserting that the Banking Policy Institute, led by figures like Jamie Dimon, has crafted an anti-crypto bill last year that undermines the interests of average Americans.  He contended that if the Senate capitulates to the bank lobby, it effectively imposes a hidden tax on retail investors and customers nationwide to safeguard Wall Street’s profits. Featured image from DALL-E, chart from TradingView.com 

Morgan Stanley’s filing for a Bitcoin (BTC) and Solana (SOL) exchange-traded fund (ETF), coupled with MSCI’s decision to retain digital asset companies in its index, has ignited a wave of speculation among analysts. Notably, analysts from Bull Theory have alleged that these events could be indicative of a larger-scale market manipulation. Bitcoin Market Manipulation?  In a post on social media platform X (formerly Twitter), the Bull Theory analysts drew attention to the timeline of events involving Bitcoin, arguing that the trajectory from its October crash to its subsequent recovery in January resembles an orchestrated setup supported by data. The first significant trigger occurred on 10 October, when MSCI — previously a division of Morgan Stanley — proposed removing Digital Asset Treasury Companies (DATCOs) from its global indexes.  Related Reading: Bitcoin Accumulation Continues: Strategy Purchases 1,287 BTC Amid Rising Prices This decision would affect firms like Strategy and Metaplanet, which hold substantial Bitcoin assets on their balance sheets. The implications were profound, given that MSCI’s indexes guide trillions of dollars in passive investments.  If these companies were removed, institutional investors, including pension funds and ETFs, would be compelled to divest, leading to a substantial contraction in institutional exposure to Bitcoin and an immediate tightening of liquidity.  Following that announcement, Bitcoin’s price plummeted by nearly $18,000, wiping out over $900 billion from the total crypto market cap. Morgan Stanley And The MSCI Shift The uncertainty continued with a consultation period that remained open until December 31. This three-month window of prolonged anxiety effectively froze investor demand for Bitcoin.  Passive investors became wary, index-linked funds faced potential forced selling, and as a result, prices saw a stark decline—with Bitcoin dropping about 31% and altcoins suffering even more, marking the worst quarter for crypto markets since 2018. However, the tide began to shift on January 1, 2026, as Bitcoin experienced an unexpected surge, rising 8% in just five days. This $7,300 increase, from $87,500 to $94,800, left many analysts puzzled, especially since the relentless selling had seemingly halted abruptly.  The analysts noted that this sudden upturn could imply that insiders might have had prior knowledge of forthcoming developments. Then, the narrative shifted dramatically on January 5 and 6. In a matter of 24 hours, Morgan Stanley unveiled its plans for spot Bitcoin, Ethereum (ETH), and Solana ETFs.  This was followed by MSCI announcing its decision not to proceed with the previously proposed exclusion of crypto-heavy companies from its indexes.  A Calculated Move?  The sequence of these events has led the analysts to present a narrative: MSCI initiated pressure by threatening index removals in October, leading to an extended period of uncertainty and suppressed prices.  Related Reading: Solana Shatters Records: 2025 Annual Review Reveals New All-Time Highs In Key Metrics Once institutions had accumulated at lower prices, Morgan Stanley introduced its ETF, and MSCI subsequently removed the threat of exclusion, raising serious concerns about the possibility of coordinated efforts to manipulate market conditions. Bull Theory analysts assert that as the market now transitions back towards liquidity, the same entities that potentially orchestrated the prior downturn may be strategically positioned to profit from the rebound.  At the time of writing, BTC is trading at $91,550, having retraced 2% from the $95,000 2-month high reached at the beginning of the week.  Featured image from DALL-E, chart from TradingView.com 

As Ethereum (ETH) recently reclaimed key levels above $3,200, the dynamics within its staking system have shifted significantly. For the first time in nearly six months, the entry queue for staking Ethereum now exceeds the exit queue, a development viewed by many as a bullish indicator for ETH prices.  Currently, a substantial 1.32 million ETH is waiting to be staked, with an average wait time of 23 days, while only about 3,000 ETH are queued for withdrawal, which takes merely an hour, indicating a net increase in locked ETH rather than unlocked coins.  Bullish Signals For Ethereum Analysts at Bull Theory suggest that historically, significant spikes in entry queues occur when investor confidence in Ethereum’s long-term potential rises. In contrast, increases in exit queues are often associated with market fear or forced sell-offs.  Presently, the landscape shows rising entry demand, decreasing exit pressure, and an overall increase in net lock-up, a combination that has frequently been observed before stronger bullish cycles for ETH. Related Reading: XRP Surges Towards $2.20: Leading Monday Gains And Driving Crypto ETF Inflows Compounding this positive sentiment is the current high level of network activity. Daily transactions on the Ethereum network are trending upwards, indicating that market participants are actively engaging with the platform rather than leaving it.  Enhanced network usage leads to increased ETH burning, contributing to a supply crunch that further supports the asset’s value. According to the analysts, institutional investment is one of the notable drivers behind the current surge in staking.  In just the past two weeks, BitMine – the public company with the largest Ethereum holdings – has staked around $2.58 billion worth of ETH, signaling a long-term commitment to the asset and suggesting growing institutional interest in the digital asset. Key Factors Suggest A Significant Upswing Ahead This development comes ahead of potential catalysts that could further boost staking demand. While the BlackRock Ethereum staking ETF is still awaiting approval, its eventual green light could grant access to a broader pool of traditional capital, thereby enhancing the overall staking demand for ETH. Additionally, ETH has successfully broken out of a three-month downward trend. If it can reclaim levels between $3,500 and $3,600, the analysts predict that a substantial rally could follow. Related Reading: Bitcoin Reaches $93,000 Amid Renewed Optimism: What To Keep An Eye On This Week As of now, ETH has recovered by 11% in the past two weeks according to CoinGecko data, positioning the token just below these key levels at $3,270. This performance has even surpassed that of Bitcoin (BTC), which has recorded gains of just 6% in the same time frame.  Taking into account additional factors such as the anticipated approval of the BlackRock ETF and the potential for regulatory clarity through the passing of the Market Structure Bill, also known as the Clarity Act, Ethereum appears to be in a strong position to experience a significant rally in 2026.  Featured image from DALL-E, chart from TradingView.com 

On Monday, Bitcoin successfully reclaimed the $93,000 mark, spurred by a wave of renewed optimism that has also revitalized altcoins such as Ethereum (ETH), XRP, and Solana (SOL), all of which are experiencing recoveries not seen in nearly a month.  According to data from CoinGecko, Bitcoin has recorded a weekly surge of 7%, while Ethereum and Solana have outperformed the leading cryptocurrency with increases of nearly 9% during the same period. Notably, XRP has taken the lead, boasting a significant 15% uptrend. Large Holders Drive Bitcoin Surge A key driver behind this recent surge, especially for Bitcoin, can be attributed to large holders, or “whales,” who have acquired approximately 270,000 BTC in the last 30 days, amounting to roughly $23 billion.  Related Reading: Dogecoin Price On The Brink Of A 9,000% Rally To $10? What Historical Performance Shows Market analyst NoLimit highlighted this crucial development in a recent social media post, noting its significance: this accumulation represents 1.3% of Bitcoin’s total supply and marks the largest net buy from this group in 13 years. However, NoLimit asserts that this doesn’t imply that Bitcoin will see an immediate surge in its value. It indicates that long-term investors are aggressively positioning themselves even while the broader market sentiment remains mixed. Will BTC Establish A Macro Lower High? In the short term, though, market analyst Rekt Capital warns that despite Bitcoin hovering just above $93,400, it has closed its 12-month candle below the $93,500 mark. This suggests that the $93,500 level is likely to act as resistance moving forward.  Historical patterns across four-year cycles indicate that such resistances can hinder price movement for an extended period, often resisting for up to three years before being breached in the next Halving year. Related Reading: Venezuela, Geopolitical Risk, And Bitcoin: What On-Chain Data Really Shows Should Bitcoin indeed be in the early stages of a bear market, this could imply that prices might surpass the $93,500 resistance in the coming months only to establish a macro lower high before continuing their downward trajectory.  According to Rekt Capital, the sustainable breakout above this resistance is more likely to occur in the next halving year in 2028. Featured image from DALL-E, chart from TradingView.com 

XRP’s recent price action in 2025 was more of a dynamic movement than a simple sideways drift. After rallying strongly earlier in 2025 and pushing to new all-time highs, the cryptocurrency has spent much of the recent months digesting those gains through pullbacks and consolidations. That structure was referenced in a chart shared on the social media platform X by Steph, which proposed that XRP’s current market behavior is beginning to resemble the long compression phase that preceded its breakout in 2017. Related Reading: Bitcoin Dominance Grows As Altcoins Post Another Losing Year: Analyst XRP Completes Nearly 400 Days Of Sideways Accumulation According to Steph’s analysis, XRP has just completed roughly 393 days of sideways accumulation, a duration that almost perfectly matches the 395-day consolidation phase it went through between 2016 and 2017. During that earlier cycle, XRP spent months moving within a relative range, producing a choppy price action. This kind of extended consolidation reflects a balance between buyers and sellers, where neither side is strong enough to force a decisive trend.  In 2017, that balance led to a transition into another technical formation of a descending channel before breaking out. The current setup in 2024-2025, at least structurally, shows XRP once again spending an unusually long time building a base in a range. A more detailed look at the chart shows another important similarity with the transition into another descending channel.  Back in the 2016-2017 cycle, XRP transitioned from sideways movement into a descending channel that gradually pushed the price lower over several months. That downward-sloping structure ultimately resolved with a sharp breakout to the upside. The 2024-2025 chart shows XRP moving through a comparable descending channel, with price compressing toward the lower boundary before showing early signs of a breakout while attention is still low. XRP Price Comparison. Source: @Steph_iscrypto on X What To Expect For XRP The 2016-2017 chart segment above shows XRP trading for roughly 395 days in a broad sideways range between about $0.005 and $0.01. Once XRP broke out of the descending channel in early 2017, price moved up very fast, first reclaiming $0.01, then surging past $0.03 and $0.05 within a few days. The expansion did not stop there, as XRP eventually rallied into the $0.40 region later that year, cementing XRP’s first 5,000% move in its history. The 2024-2025 chart shows XRP peaking near the $3.40 zone before entering a sideways consolidation phase throughout 2025. Price action is now in the descending channel, which is gradually compressing around the $1.70-$1.90 area. Related Reading: Crypto ETFs Defy The Pullback With $32 Billion In Fresh Investor Cash That channel now looks similar to the location where XRP was in 2017 before its breakout, adjusted for scale. A comparable 5,000% move from the current zone of price action would mathematically project the XRP price to about $100. Featured image from Unsplash, chart from TradingView

A crypto analyst has predicted that the Ethereum price could balloon to $3,500 soon, potentially breaking free of the bearish pressure that has suppressed its momentum for much of 2025. Although ETH is currently trading more than 37.5% below its all-time highs, the analyst has outlined technical indicators and market structure signals suggesting $3,500 is a realistic short-term target for the cryptocurrency.   Related Reading: Crypto ETFs Defy The Pullback With $32 Billion In Fresh Investor Cash Ethereum Price Setup Points To $3,500 Rebound Crypto market analyst Tryrex has delivered a fresh outlook on the Ethereum price, pointing to conditions that could support a strong upside move to $3,500 in the coming months. In his post on X, the expert suggested that ETH may be approaching the end of its prolonged corrective phase and may be preparing for a decisive bounce.  Tryrex highlighted the possibility of a strong rebound developing in the first quarter of 2026, driven by Ethereum’s current hold of a critical liquidity zone between $2,800 and $3,000. He explained that while Bitcoin (BTC) bottomed out in 2025 and entered a range-bound period right after, Ethereum showed relative strength by firmly defending the liquidity region.  Based on the analyst’s weekly TradingView chart, this price area also represents a weekly demand zone that has absorbed repeated selling pressure. The fact that the price continues to hold this area indicates that market participants are buying ETH rather than distributing it. Volume behavior at the bottom of the chart also suggests that selling pressure has been weakening compared to earlier phases of Ethereum’s downtrend.  Tryrex expects an impulsive move to emerge as Ethereum continues to react to the $2,800 to $3,000 liquidity range. If momentum builds as anticipated, ETH could break out of its current structure and push toward higher resistance levels, with a move above $3,500 seen as an increasingly likely near-term target. With its price currently sitting above $3,000, this would represent a more than 13% increase.  The analyst has also revealed that his bullish forecast for ETH reflects broader conditions across the altcoin market. He highlighted that many major altcoins appear to be bottoming out after extended downtrends, increasing the possibility of coordinated upside moves if market sentiment and volatility improve.  Ethereum Shows Early Moves In 2026 The market is just three days into 2026, and although major cryptocurrencies like Bitcoin and Dogecoin closed 2025 in the red, Ethereum appears to be showing early signs of recovery. Initially, the ETH started the year in a similar downtrend, but over the past 24 hours, its price has increased by approximately 2.5%. Related Reading: Bitcoin Dominance Grows As Altcoins Post Another Losing Year: Analyst CoinMarketCap data shows that from January 1 to date, Ethereum has declined by more than 9.5%. However, its trading volume in the last 24 hours has increased by over 100%, signaling strong trader interest despite the recent price dips. In addition, whales have been steadily accumulating ETH, taking advantage of lower prices to increase their positions. Featured image from Pexels, chart from TradingView

With 2025 now closed, the crypto market is beginning 2026 with attempts to recover from one of its most challenging years. After a tumultuous period, total market capitalization has surged back above $3 trillion. However, many investors are left wondering what the new year has in store for digital assets. Institutions Forecast Bullish Crypto Prices For 2026 According to a recent report by analysts at Bull Theory, the past year proved to be robust for traditional markets, particularly for metals, while cryptocurrencies fell short of expectations. Silver surged by 160%, and gold followed suit with a 66% increase.  In contrast, Bitcoin (BTC) wrapped up 2025 down approximately 5%, despite several positive indicators, such as consistent purchasing by Strategy, strong inflows into Bitcoin exchange-traded funds (ETFs), and growing institutional interest.  Related Reading: Is The Dogecoin Bottom In? 3 Analysts Break Down the Charts Yet, when one asset class lags significantly while liquidity remains abundant, historical trends show that the gap typically narrows. In terms of specific projections, various major institutions and prominent investors have offered their forecasts for both Bitcoin and Ethereum (ETH).  Standard Chartered targets Bitcoin to reach $150,000 by the end of 2026, and JPMorgan projects a price of $170,000. Meanwhile, Citi’s base case stands around $143,000, with a more aggressive bull case suggesting a potential rise to $189,000.  Cathie Wood of ARK Invest envisions a long-term scenario where Bitcoin could hit $500,000, contingent on widespread institutional adoption. Tom Lee from Fundstrat anticipates Ethereum will trade between $7,000 and $9,000 by early 2026, fueled by the tokenization of real-world assets. New Regulations And Economic Optimism The analysts further highlighted that, unlike previous years, this cycle looks distinct in several key aspects. For one, crypto is no longer encumbered by operating within a legal gray area.  New regulatory frameworks, particularly in the US, are poised to offer clearer guidelines, reducing uncertainty and facilitating easier access for institutional investors. The anticipated changes aim for simplified regulations that could enhance market structure while broadening institutional participation beyond just Bitcoin and Ethereum.  Moreover, several factors suggest that a sharp movement in the crypto markets could be on the horizon. The end of quantitative tightening on December 1, 2025, coupled with a growing GDP, signals a conducive environment for crypto.  Related Reading: Dogecoin Long-Term Bullish Structure Still In Play And Will Cross $10 With inflation stabilized below 3% and unemployment at 4.6%, there are indications that the Federal Reserve (Fed) may adopt a more dovish stance, especially with a new Fed Chair expected to take office in May 2026.  Overall, as the new year begins, the crypto market finds itself in a position of underperformance rather than excess. This contrasting state often results in rapid repricings as gaps are closed in response to liquidity alignment.  As a result, Bull Theory analysts believe that 2026 could very well be the year when these disparities start to correct, leading to a potentially bullish environment for cryptocurrencies. Featured image from DALL-E, chart from TradingView.com 

Crypto analyst and XRP advocate Levi Rietveld recently shared a short post on X stating that “$XRP is built for this,” alongside a video clip of US Treasury Secretary Scott Bessent speaking about reviewing regulatory barriers around blockchain, stablecoins, and new payment systems like the crypto industry. Bessent’s comments focused on reforming financial infrastructure so capital markets can function more efficiently for mainstream users. In turn, Rietveld viewed those comments as closely matching the original purpose XRP was created to serve. Related Reading: Ethereum’s 2026 Overhaul Aims To Cut Costs, Boost Speed, Limit Censorship What XRP Was Designed To Do In the video clip that Levi Rietveld shared on X alongside his statement of XRP being built for this, Scott Bessent outlined a policy direction that places emphasis on evaluating regulatory impediments to blockchain technology, stablecoins, and new payment systems.  Bessent stated that officials will take a close look at regulatory impediments to blockchain, stablecoins, and new payment systems and consider reforms to unleash the power of American capital markets. Notably, this plan corresponds to a more crypto-positive approach adopted by the current US administration under President Donald Trump.  $XRP Is Built For This! pic.twitter.com/WNDUoeFPC4 — Levi | Crypto Crusaders (@LeviRietveld) December 22, 2025 These are a part of efforts by the US government to modernize crypto regulation and define clearer frameworks for digital assets, including proposed acts aimed at bringing clarity to markets and stablecoins. One example of this is the Clarity Act, a legislative proposal that aims to clearly define the regulatory treatment of digital assets, separate payment-focused tokens from securities, and assign clearer oversight roles to agencies such as the SEC and CFTC.  Bessent’s comments focused on improving payment systems and removing friction around new financial technology. XRP proponents like Levi Rietveld would quickly point out that the theme aligns closely with how the cryptocurrency and the XRP Ledger were engineered.  The XRP Ledger works with transparent settlement, predictable transaction costs, and finality that does not depend on mining or complex smart contract execution. These characteristics are important for institutions that need clarity and reliability.  In practice, XRP’s real-world role is most visible through payment solutions developed by Ripple. Banks and other financial institutions do not need to hold large balances of foreign currencies, since XRP can be used as an intermediate asset during settlement.  XRP’s Current Regulatory And Institutional Position Progress on regulatory clarity has been helping real institutional infrastructure around XRP. Multiple Spot XRP ETFs have gained approval and launched in 2025 and early numbers are positive, with over $1.14 billion worth of inflows. Bloomberg estimates suggest these funds could draw $5 billion to $7 billion in institutional capital by 2026.  Related Reading: Could XRP Make Trillionaires? Tech Firm Founder Thinks It’s Possible This creates new avenues for asset managers, pension funds, and other institutional allocators to hold XRP within traditional investment vehicles. All these cannot be possible without the clear framework for blockchain, stable coins, and new payment systems proposed by Bessent. Featured image from Unsplash, chart from TradingView

According to a well-known crypto analyst, Bitcoin’s (BTC) long-standing four-year cycle can no longer dictate the direction of the crypto market. For months, both Bitcoin and major altcoins have struggled to regain their previous highs, while traditional markets have flourished. This difference in performance has sparked discussions about whether the old cycle rule still applies and what could come next for the broader market. Analyst Declares Bitcoin 4-Year Cycle Dead  A popular crypto analyst with over 227,000 followers on X, @theunipcs, has announced that the Bitcoin four-year cycle is dead. He stated that this market cycle is now unable to determine the behavior of BTC and many major altcoins.  Related Reading: Ethereum’s 2026 Overhaul Aims To Cut Costs, Boost Speed, Limit Censorship Traditionally, crypto’s four-year cycles have relied on the Bitcoin halving to reduce supply and trigger price surges. However, based on Unipcs’ analysis, these mechanisms no longer govern the market, especially as factors such as monetary policy, Spot ETFs, liquidity flows, macroeconomic factors, and dramatic liquidation events have significantly altered it.  Unipcs emphasized that the market has been in a long phase of consolidation and accumulation, showing little of the explosive activity historically expected after halving events. He pointed out that the price of Bitcoin and leading altcoins have remained depressed for months, trading roughly 30% or more below their all-time highs.  This decline stands in stark contrast to other major asset classes, which continue to climb. The analyst noted that Silver has been hitting record levels almost daily, while Gold continues to climb to new peaks. Additionally, major US stock indexes, such as the S&P 500, are hitting fresh highs, while crypto remains stagnant and underperforming.  Notably, this extended period of weakness is highlighted by Bitcoin’s crash below $85,000 earlier this month after peaking above $126,000 during the first week of October. Many altcoins, including Ethereum, Solana, XRP, and others, have followed a similar trajectory, surging explosively before plunging to new lows.  Technical indicators, such as the Fear & Greed Index, indicate that investor sentiment remains deeply negative, while analyst insights point to a bearish market structure. Overall, Unipcs’ analysis signals the possible end of the historically repetitive 4-year cycle, though he suggests it could mark the beginning of a new bullish phase for crypto.  What’s Next For BTC And The Crypto Market?  Despite the prolonged slump, Unipcs believes that the ongoing accumulation trend could end soon, triggering an aggressive rally in the crypto market. He believes that once this happens, Bitcoin and major altcoins could surge explosively to new all-time highs once the dormant market transitions into a new bullish phase.  Related Reading: Could XRP Make Trillionaires? Tech Firm Founder Thinks It’s Possible While the timing of his optimistic outlook remains uncertain, the analyst is confident in the market’s potential for a decisive breakout and recovery. Unipcs has stated that the crypto market will eventually catch up and potentially outperform all asset classes soon.  Featured image from Pexels, chart from TradingView

Ethereum has spent much of December under pressure, and the recent fall below $3,000 has left a visible mark on investor positioning.  On-chain data now shows a notable deterioration in profitability across the network, with the share of ETH supply sitting in profit falling below 60%. At the same time, institutional demand has decreased, with data from Glassnode showing how both retail profitability and institutional participation in Ethereum have weakened simultaneously. Related Reading: Could XRP Make Trillionaires? Tech Firm Founder Thinks It’s Possible Ethereum’s Percent Supply In Profit Falls Below 60% The drop in Ethereum’s percent supply in profit has been one of the clearest signals of stress for Ethereum. Ethereum’s investors have fallen into deeper losses, and this is a reflection of recent price action.  Speaking of price action, Ethereum had initially reclaimed the $3,000 price level on December 22. During this time, the percentage of ETH supply in profit pushed back above 60% and reached as high as 63%. However, this break was for only a very brief time, and price action fell back below $3,000 after just a few hours.  As ETH broke below $3,000 again, the share of supply held at unrealized gains fell under 60%, down from above 70% earlier in December. This fall shows that the pullback has not been limited to recent buyers but has begun to impact investors who accumulated during the beginning of the month. ETH Percent Supply In Profit. Source: Glassnode ETF Net Outflows Indicate Waning Institutional Participation The weakness in on-chain profitability and price action is also a reflection of trends in the ETF market. Another data metric from Glassnode shows that since early November, the 30-day moving average of net flows into US Spot Ethereum ETFs has turned negative and remained there. This persistence of outflows points to a phase of muted participation and disengagement from institutional traders. The ETF chart below shows that inflows, which supported Ethereum’s push to new all-time highs in August, have faded, replaced by continued outflows through November and December. This matters for price action because ETF demand has been a key source of incremental buying. As that bid has weakened, Ethereum has struggled to absorb sell-side pressure, contributing to its failure to hold above $3,000. ETH: US Spot ETF Net Flows. Source: Glassnode The combination of negative ETF net flows and Ethereum’s recent price behaviorhelps explain rising unrealized losses. Interestingly, various on-chain data sources also reveal different instances of whale addresses reducing their exposure to Ethereum outside of spot ETFs.  For instance, Lookonchain recently highlighted activity from a wallet believed to be linked to Erik Voorhees, which swapped 4,619 ETH, valued at about $13.42 million, into Bitcoin Cash (BCH) over the past two weeks after having been inactive for nearly nine years. Voorhees later responded by clarifying that the wallet does not belong to him and that he does not hold any Bitcoin Cash. Related Reading: Ethereum’s 2026 Overhaul Aims To Cut Costs, Boost Speed, Limit Censorship Lookonchain also pointed to selling pressure from Arthur Hayes, co-founder of BitMEX, who has offloaded a total of 1,871 ETH at about $5.53 million in the past week. Featured image from Unsplash, chart from TradingView

In a recent report, the data aggregator CoinGecko has unveiled the leading crypto narratives of the year, with the Real-World Asset (RWA) sector emerging as a major contender with notable returns RWAs Lead Crypto Market Growth The report highlights that RWA has become the standout narrative in 2025, boasting an impressive average price return of 185.8% year-to-date (YTD) across key tokens, such as Figure Heloc, Chainlink (LINK), Stellar (XLM), Tether Gold (XAUT), and BlackRock’s BUIDL.  This surge in the RWA sector can largely be attributed to the performance of specific platforms. Notably, Keeta Network has skyrocketed by 1,794.9% YTD, while Zebec Network and Maple Finance have recorded gains of 217.3% and 123.0% respectively.  Related Reading: Bitcoin Correction Timeline: Analyst Predicts Potential Bottom In October 2026 Current statistics show that the crypto RWA sector boasts a Distributed Asset Value of $18.88 billion, reflecting a 2.56% increase over the past month. However, the Represented Asset Value has seen a slight decline, standing at $407.93 billion, down 2.36%. For context, RWA’s approach facilitates asset managers and projects the digital transformation of tangible assets, such as real estate and commodities, creating a solid foundation for trading, managing, and securing these assets. Layer-1 (L1) solutions have emerged as the second most profitable narrative this year, achieving an average price gain of 80.3% YTD. The success of this narrative can be attributed to the performance of privacy-focused blockchains such as Zcash and Monero, which have seen rallies of 691.3% and 143.6%, respectively.  Another noteworthy crypto narrative, “Made in USA,” is also on track to end the year positively, with average gains of 30.6% YTD, primarily driven by Zcash’s performance that mitigated the moderate losses of other tokens in that category. Top Meme Tokens Suffer Heavy Losses Despite their popularity, narratives such as memecoins and artificial intelligence (AI) have struggled this year, with average returns of -31.6% and -50.2% year-to-date, respectively.  Leading memecoins in the crypto space, such as Dogecoin (DOGE) and Shiba Inu (SHIB), have demonstrated the volatility of this sector by suffering significant losses of over 60% year-to-date.  Similarly, the report notes that many artificial intelligence-focused crypto assets have recorded declines between 49.8% and 84.3%, with only Alchemist AI and Kite performing relatively better. Related Reading: Ethereum Fails To Surpass $3,000: Predictions For The Final Days Of The Year Lastly, the decentralized finance narrative faced a challenging year, experiencing average returns of -34.8%, which is consistent with the returns seen in the memecoins segment.  The decentralized exchange (DEX) narrative has mirrored this decline with average losses of -55.5%, while layer-2 (L2) solutions have also struggled, recording average returns of -40.6% for the second year in a row. At the time of writing, the market’s leading crypto, Bitcoin (BTC), was trading at $88,960, having recorded losses of 10% year-to-date.  Featured image from DALL-E, chart from TradingView.com 

As Bitcoin (BTC) struggles to maintain its position below the $90,000 threshold, market sentiment appears to be shifting toward the possibility of a new bear market. Notably, analyst Ali Martinez has drawn comparisons with historical market cycles to forecast Bitcoin’s trajectory.  Bitcoin Market Patterns In a recent social media post, Martinez highlighted a recurring pattern that suggests it typically takes around 1,064 days for Bitcoin to transition from a market bottom to a market top, followed by approximately 364 days from a market peak back to the next bottom. Related Reading: Ethereum Fails To Surpass $3,000: Predictions For The Final Days Of The Year In the first cycle, the market bottomed out in January 2015 and reached its peak in December 2017, exactly 1,064 days later. This was followed by a bear market that lasted 364 days, culminating in the bottom in December 2018.  The second cycle mirrored this pattern: the market bottomed in December 2018 and reached its apex in November 2021, again over a span of 1,064 days. Subsequently, another downturn followed, leading to a bottom in November 2022, when Bitcoin traded around $15,500. Next Bottom At $37,500? Currently, the analyst highlights that the market is in what could be the third cycle, having witnessed a market bottom in November 2022 and a current peak above $126,000 reached back in October.  Applying the historical patterns of these cycles, it suggests that Bitcoin is now within the 364-day correction window, indicating a potential bottom could materialize around October 2026 — approximately 288 days from now. Related Reading: Altcoin Struggles: What The Future Holds And The Potential For A 2026 Revival Examining past bear markets offers additional context for projecting potential downside. The bear market from 2017 to 2018 saw a correction of approximately 84%, while the market decline from 2021 to 2022 experienced a retracement of roughly 77%.  Averaging these two corrections, Martinez suggests an expected retracement of around 80%, positioning Bitcoin’s next market bottom at around $37,500. Currently, the market’s leading cryptocurrency is trading slightly above the $88,290 mark, which is a 30% gap from the current peak.  Featured image from DALL-E, chart from TradingView.com 

The Ethereum price has struggled to reclaim the critical $3,000 mark for the past 48 hours, raising concerns about potential declines in the cryptocurrency’s value if this essential support level is not regained by the end of the week. Analyst Predicts Further Downside Market analyst Ted Pillows pointed out on social media platform X (formerly Twitter) that without a quick recovery above $3,000, Ethereum could face further downside pressures, possibly dropping toward the $2,800 range in the near term.  This scenario would indicate an additional retracement of approximately 5% from its current trading price, which hovers just above $2,940. This ongoing struggle adds to the 16% decline recorded in the monthly time frame, highlighting the precarious situation for broader cryptocurrency prices. Related Reading: This Friday’s Bitcoin Options Expiry Could Shake Up The Market: What To Look Out For Another analyst, Columbus, sought to understand Ethereum’s lackluster performance relative to Bitcoin (BTC). He noted that Ethereum continues to trade below its Volume Weighted Average Price (VWAP), struggling to gain traction above this critical metric.  The bounce observed from the $2,800 to $2,850 range appears more responsive than impulsive, in the analyst’s words, suggesting that while there are buying interests, conviction in the rally remains weak. Columbus further remarked that there is considerable liquidity layered overhead, particularly within the $3,050 to $3,250 zone. This liquidity has successfully capped any attempts to push prices higher.  Unless Ethereum can reclaim this area and achieve consistent acceptance above it, upward movements are likely to be more about short-term rotations into supply rather than genuine trend continuation. On the downside, a failure to hold the $2,850 mark could expose Ethereum to deeper losses, potentially leading to a downturn toward lower liquidity levels between $2,400 and $2,700, where the bulk of liquidity is concentrated. Will Ethereum Drop To $1,300 In 2026? Looking further into the future, market expert CryptoBullet painted a more somber picture of Ethereum’s potential trajectory for 2026. He has introduced a new fractal model for Ethereum that suggests bearish outcomes for investors anticipating a bull run next year.  In a social media post, CryptoBullet presented a daily chart of Ethereum, outlining key price targets and indicating that while a price recovery might occur in January and February, subsequent months could see a significant downturn. Related Reading: These Five Key Drivers Could Boost XRP To $5 By 2026, Claims Top Analyst According to this analysis, Ethereum’s brief recovery could falter against existing resistance levels between $3,600 and $3,800, potentially culminating in a dramatic decline to a target price of $1,385.  If this fractal model mimics Ethereum’s performance in 2022, it could signify a staggering 63% drop in value for the leading altcoin. Featured image from DALL-E, chart from TradingView.com 

Recent market dynamics have seen Ethereum (ETH) at the forefront of a significant decline in the altcoin sector, pushing many top cryptocurrencies below crucial price levels.  Market expert CyrilXBT has taken to social media platform X (formerly Twitter) to unravel the factors contributing to this downturn and explore the potential for a recovery rally in 2026. Altcoin Struggles CyrilXBT began his analysis by addressing the role of Bitcoin (BTC) dominance in the market. When Bitcoin’s dominance increases, capital tends to concentrate within the asset rather than exiting the broader cryptocurrency market.  Related Reading: Expert Predicts Bitcoin Could Hit $70,000, Drawing Parallels To December 2021 Crash This indicates that Bitcoin becomes a refuge for investors seeking safety, while altcoins transform into sources of liquidity. As a result, risk compresses prior to any expansion, a pattern consistently observed in previous cycles before altcoins regain strength. Another contributing factor to the current turmoil is tax-loss harvesting. Cryptocurrencies are one of the few major asset classes that have seen declines compared to January 1st, with equities and gold demonstrating gains.  To lock in losses before year-end, funds are actively selling off unprofitable altcoin positions, crypto exchange-traded funds (ETFs), and other high-risk assets. CyrilXBT noted that this pressure would likely dissipate as the calendar turns to the new year. Liquidity Lag And Exhausted Demand The expert further highlighted that liquidity tends to work on a lagging basis. Although the Federal Reserve (Fed) has started to inject liquidity back into the system, markets typically do not react immediately.  Historically, improvements in liquidity occur first, followed by Bitcoin stabilizing, with altcoins lagging behind. Currently, the market remains in the lag phase, not yet experiencing the anticipated breakout. With low volatility, stagnant Bitcoin prices, and declining altcoins, CyrilXBT asserts that it evokes memories of previous cycles, such as the early 2019 and early 2023 recoveries.  Related Reading: Ethereum Bearish Structure Meets Bullish Supply Signal – What Happens Next Overall, the drop in the altcoin market can be attributed to several interconnected factors: rising Bitcoin dominance, peak tax-loss selling, thin liquidity, exhausted demand, and the delayed effects of macro liquidity.  Instead of a capitulation scenario, the expert suggests that this moment appears to represent compression—a phase that frequently precedes significant recoveries. Featured image from DALL-E, chart from TradingView.com 

As the Bitcoin (BTC) price settles below the critical $90,000 support level, discussions about the potential onset of a new bear market are growing among experts and market analysts.  The market’s leading cryptocurrency, currently trading at approximately $87,370, has experienced a decline of over 30% from its all-time high of more than $126,000, drawing comparisons to past market behaviors, particularly those witnessed in December 2021. Fractal Patterns Resurface Notably, on December 24, 2021, Bitcoin was valued at around $51,700, marking a local peak before it plummeted to $34,000 by January 24, 2022. This decline represented a significant 34% drop within just one month.  Related Reading: This Friday’s Bitcoin Options Expiry Could Shake Up The Market: What To Look Out For An expert analyzing the current market dynamics has applied a fractal model derived from that previous sell-off to Bitcoin’s present price. According to this analysis, there is a potential trajectory that could see the cryptocurrency move toward the $70,000 mark in the coming days.  The expert argues that given the current price action and current market conditions, this scenario is plausible and suggests an additional decline of about 20% for the Bitcoin price if a similar pattern unfolds. However, without clear direction, the question remains whether this situation will unfold into a recovery above key price levels or into an extended bear market heading into the first quarter of 2026. As such, perspectives among analysts vary widely.  Expert Predicts ‘Bitcoin Supercycle’ Ahead CryptoKaleo, another figure on social media platform X (formerly Twitter), posits that the current market mirrors conditions seen in the fall of 2020.  Both scenarios involved Bitcoin losing a critical support level that had been established in the wake of significant market corrections, leading to a “mini-bart” scenario where the price retraced nearly all of its previous gains, eventually finding a new base. During the recovery phase after the COVID-19 crash in 2020, traditional stocks, particularly in the tech sector, significantly outperformed Bitcoin, leading many to claim that the leading cryptocurrency was fading into irrelevance.  Related Reading: These Five Key Drivers Could Boost XRP To $5 By 2026, Claims Top Analyst Today, as equities frequently reach new all-time highs, a similar narrative is emerging, with some asserting that Bitcoin has become stagnant and altcoins are lacking momentum. Despite this, CryptoKaleo remains optimistic, suggesting that the present situation does not conform to the typical four-year market cycle for the cryptocurrency.  Instead of a prolonged bearish phase, he predicts that when Bitcoin reaches new all-time highs in 2026, it will usher in an exciting “supercycle,” characterized by prolonged upward trends, robust altcoin seasons, and a resurgence of retail interest in mainstream cryptocurrencies. Featured image from DALL-E, chart from TradingView.com 

There’s been a major shift in profitability since the Bitcoin price crashed from $126,000, and altcoins have borne the brunt of it. With major altcoins down between 30% and 80% from their all-time high values, calls for an altcoin season have gone down drastically. This has been reflected in the performance of the Altcoin Season Index, falling to one of the lowest recorded levels in 2025 as the year draws to an end. Altcoin Season Index Says Losses Are The Order Of The Day The Altcoin Season Index Chart on the CoinMarketCap website, which tracks the performance of altcoins against Bitcoin, has now fallen below 20 again. This index collates the performance of the top 100 altcoins in the market, comparing their 90-day performance to that of Bitcoin, in order to pinpoint whether the market is currently experiencing an altcoin season. Related Reading: Bitcoin Price Remains Stuck Inside This Range, But A Breakout Could Follow The index ranks the performance on a scale of 1-100, depending on how many altcoins out of the top 100 are outperforming Bitcoin, and uses that to score the market. At the time of writing, the Altcoin Season Index was sitting at a score of 17, which means only 17 of the top 100 altcoins have seen a better performance than Bitcoin in the last 90 days. With the index’s score sitting this low, it suggests that altcoins are currently in a bear market. Additionally, Ethereum, which is often the altcoin leader when it comes to an alt season, is still underperforming compared to Bitcoin. The second-largest cryptocurrency has recorded a 28.30% decrease in the last 90 days, while Bitcoin is down 21.10% in comparison. How To Know If Altcoins Are In A Bull Run? To know if the altcoin market is experiencing an altcoin season, the index would have to read at a score of 75 or higher. This is when the majority of altcoins are outperforming Bitcoin in a 3-month period, and their combined market cap surpasses that of the leading cryptocurrency. Related Reading: Pundit Shares Why XRP Will Become Expensive And A $1,000 Price Tag Is Possible Scores lower than 75 suggest that the market is yet to enter a full-blown altcoin season, and the lower it goes, the higher the chances that altcoins are experiencing a bear market. However, the higher the Altcoin Season Index score is, nearing 100, the more likely it is that the altcoin market may be experiencing a top. Altcoin seasons are often characterized by rapid increases in price, with 100% rallies on a daily basis being the norm. The last major altcoin season was back in 2021, and while the expectation was that another altcoin season would begin in 2025, this has not been the case. Featured image from Dall.E, chart from TradingView.com

In the wake of a significant shift in crypto regulation spurred by the new White House administration under President Donald Trump, lawmakers are working on a fresh tax framework aimed at providing clarity and a safe harbor for certain transactions involving stablecoins.  Proposed Crypto Tax Framework Representatives Max Miller from Ohio and Steven Horsford from Nevada have drafted a preliminary proposal that seeks to align the tax treatment of cryptocurrencies with that of traditional securities.  According to a recent report by Bloomberg, the draft consists of a blend of policy objectives and bill language not yet formally approved. Related Reading: Pundit Shares Why XRP Will Become Expensive And A $1,000 Price Tag Is Possible One of the key features of this draft legislation is its aim to exempt capital gains tax for transactions involving regulated stablecoins. Specifically, the proposal proposes to shield transactions that consistently maintain a value between $0.99 and $1.01 from taxation.  However, this exemption is limited to transactions under $200, and the final text may modify which tokens will qualify for this safe harbor, as advised by aides to both congressmen. The proposal also attempts to establish safe harbors for rewards earned through activities like staking, which involves verifying blockchain transactions.  Representative Miller emphasized that “America’s tax code has failed to keep pace with modern financial technology.” He described the bipartisan bill as a means to inject clarity, fairness, and common sense into the taxation of digital assets. The proposed draft also addresses the taxation of rewards earned through staking and mining cryptocurrencies, which involves verifying transactions within blockchain networks. Aligning Digital Assets With Securities Tax Regime Under guidance from the Internal Revenue Service (IRS) issued during the Biden administration, rewards obtained from staking are taxed at the time of receipt.  Republican lawmakers have voiced concerns regarding this approach, arguing that it taxes assets before owners realize a gain. Conversely, Democrats maintain that these rewards should be classified as compensation and taxed upon receipt. To navigate this divide, Miller and Horsford aim to find a compromise, allowing taxpayers to defer tax on rewards for up to five years. After this period, the rewards would be taxed as income based on their fair market value.  Pro-crypto Senator Cynthia Lummis, who recently announced that she will not be running for re-election next year, had previously introduced crypto tax legislation that would leave such rewards untaxed until they are sold. This legislation would align more closely with industry preferences. Related Reading: Saylor Sparks Bitcoin Speculation With ‘Green Dots’ Signal Additionally, the draft aims to bring digital assets under the same tax regime that governs securities and, in some cases, commodities transactions.  It proposes to include cryptocurrencies in capital gains tax exemptions for foreign investors trading securities through US-based intermediaries like brokers or exchanges.  Furthermore, the plan would permit cryptocurrency traders to utilize mark-to-market accounting, allowing them to recognize unrealized gains and losses based on fair market value at the end of each year.  The proposed legislation also seeks to impose restrictions on deducting losses from wash trades for digital assets and “close existing loopholes” that facilitate transactions designed to lock in cryptocurrency gains while postponing the associated tax liability. Featured image from DALL-E, chart from TradingView.com 

Expectations around XRP exchange-traded funds were seen as a turning point that could unlock new institutional demand and change XRP’s price structure in favor of buyers. However, recent on-chain data suggests the price response has diverged immensely from that narrative.  Metrics tracked by the on-chain analytics platform CryptoQuant point to a very different dynamic unfolding beneath the surface, one that explains why the altcoin continues to struggle for traction despite headline optimism and inflows into Spot XRP ETFs. Related Reading: Banks Could Favor A Higher XRP Price, Finance Expert Says Whale Exchange Inflows Expose Supply Pressure Data from on-chain analytics platform CryptoQuant reveals an interesting trend among XRP whale addresses and their activity on crypto exchange Binance. A closer look at the Binance Inflow-Value Band chart shows that recent XRP deposits to exchanges are overwhelmingly concentrated in the 100,000 to 1 million XRP range and transactions exceeding 1 million coins.  These are not retail-sized movements. They reflect activity from large holders moving significant balances onto exchanges, and this behavior aligns with distribution or preparation for selling. The chart showing the exchange inflow into Binance makes this pattern clear, with repeated inflow spikes driven almost entirely by these higher-value bands, while smaller transaction sizes are comparatively lower.  The chart image below shows inflows in chunks between 100,000 XRP and 1 million XRP in purple and inflows of chunks more than 1 million XRP in light blue. Most of the inflows into Binance in the past few days have been characterized by these two cohorts, with a few instances of inflows in chunks between 10,000 XRP and 100,000 XRP.  XRP Ledger: Exchange Inflow Value Bands – Binance. Source: CryptoQuant This imbalance means that supply is being added to the market by whales at a pace that smaller buyers cannot absorb, and this is why inflows into Spot XRP ETFs have failed to have a positive effect on the altcoin’s price action. Lower Highs, Lower Lows Confirm Supply Overpowering Demand As shown in the price action overlaid in the chart above, the coin printed repeatedly lower highs and lower lows after major exchange deposits. This happens because of the relatively low numbers of new spot buyers on Binance, and even moderate selling pressure has been enough to cap rallies. As it stands, the crypto is facing selling pressure every time it approaches $1.95. Based on the intensity of exchange inflows and the market’s reaction, the first meaningful support zone is between $1.82 and $1.87. However, if large inflows persist, the data suggests the XRP price could continue declining to the $1.50 to $1.66 range. Related Reading: Bitcoin Feels The Weight Of Quantum Risk Concerns, Industry Leaders Warn The interpretation is that the ETF trend did not translate into sustained spot demand for XRP. Instead, whales who accumulated XRP ahead of ETF approval expectations appear to have used the resulting attention as an opportunity to dump their holdings.  That said, inflows into Spot XRP ETFs may have helped limit deeper downside, as data from SoSoValue shows these funds recorded $82.04 million in inflows over the recent week. Featured image from Unsplash, chart from TradingView 

Bitcoin is back in focus after an outlook from Citigroup, where analysts mapped out a wide price range for the next year that captures both upside momentum and lingering downside risks.  The bank’s latest projections point to a base-case target of $143,000 over the next 12 months, anchored in expectations around a growth in ETF participation and clearer regulatory frameworks. Furthermore, Citi outlined an optimistic path that stretches to $189,000, alongside a bearish scenario that projects a downward move to $78,500. Related Reading: Banks Could Favor A Higher XRP Price, Finance Expert Says ETF Adoption And Institutional Demand Citi’s base and bullish scenarios are built around the same core thesis: the growing role of regulated investment vehicles in shaping Bitcoin’s market structure. Crypto analysts are always noting that Spot Bitcoin ETFs have lowered barriers for institutional investors, making it easier for large pools of capital to gain exposure without direct custody concerns. Analysts at Citi are leaning into this school of thought and are projecting bullish price levels for Bitcoin. With the expectations of ETF interest and regulatory clarity in mind, Citi sees Bitcoin trending toward $143,000 under its base case within the next 12 months.  Interestingly, the outlook of a bullish scenario from the analysts projected that Bitcoin will be trading somewhere around $189,000 within the next 12 months. These projections are notable considering the current state of Bitcoin’s price action, which is currently struggling near $90,000. They are also contingent on a turnaround in the state of flows surrounding Spot Bitcoin ETFs. LATEST: ???? Citi analysts put Bitcoin’s 12-month price base case at $143,000, driven by anticipated ETF interest and regulatory clarity, with a bullish scenario of $189,000 and a bearish one of $78,500. pic.twitter.com/jAukEDkXQe — CoinMarketCap (@CoinMarketCap) December 20, 2025 Despite its constructive outlook, Citi also flagged downside risks that could derail bullish momentum. A bearish framework by Citi analysts projects the Bitcoin price sliding to $78,500 within the next 12 months. Fundstrat’s Internal View Contrasts With Citi’s Optimism Citi’s bullish projections are in contrast to a more cautious internal outlook recently reported by Fundstrat Global Advisors. Internal discussions within the firm are warning of a possible drawdown of the Bitcoin price toward the $60,000 to $65,000 range. According to an internal note circulated to clients, Fundstrat’s head of digital asset strategy, Sean Farrell, cautioned that a further correction may unfold during the first half of 2026 as macroeconomic pressures and tightening financial conditions weigh on risk assets.  According to @_FORAB, Tom Lee’s fund, Fundstrat, stated in its latest 2026 cryptocurrency strategy advice to internal clients that a significant correction is expected in the first half of the year, completely contradicting Tom Lee’s public statements. The internal report sets… pic.twitter.com/HbRoNzr85z — Wu Blockchain (@WuBlockchain) December 20, 2025 The report outlined downside targets that place Bitcoin in the $60,000 to $65,000 range, a level that would represent a 30% decrease from its current price range. The same internal framework also projected Ethereum retreating downwards to $1,800 to $2,000, alongside Solana falling into a $50 to $75 range. Related Reading: Bitcoin Feels The Weight Of Quantum Risk Concerns, Industry Leaders Warn This goes against the public stance of Fundstrat co-founder Tom Lee, who has publicly maintained a bullish stance on the long-term trajectory and new all-time highs for Ethereum and Bitcoin. Featured image from Unsplash, chart from TradingView

Bitcoin (BTC) investors may need to temper their expectations as the cryptocurrency heads into its final bull run. Analysts indicate that the bull rally could unfold slowly, suggesting a gradual climb to new highs. Traders are being urged to prepare for heightened volatility and plan their strategies carefully to protect gains while staying positioned for potential upside.  Slow Climb Expected In Bitcoin’s Final Bull Run  A market expert who calls himself Crypto Waterman has shared his latest outlook on Bitcoin’s final bull run. He expects the last leg of the rally to be a slow and deliberate process rather than a sudden spike. According to him, the parabolic move could take roughly one to two months to complete, potentially unfolding during the first quarter of 2026.   Related Reading: XRP ETFs Grow Past $60M As Price Struggles To Respond Crypto Waterman warns that before this final surge, there will likely be intense market pressure to push out inexperienced investors. This period could include sudden shakeouts and volatility designed to test retail traders’ resolve. He also stated that many investors may exit too early as euphoria builds, while others will become bag holders as prices climb rapidly.  The analyst emphasized that smart wallets and BTC whales tend to sell into strength during this phase. For average investors, he suggests a careful strategy of dollar-cost averaging out of positions once gains become significant. Observing coins doubling in a single day could be an early signal to start reducing exposure.  Crypto Waterman also shares his personal approach to profit-taking, which involves selling 25% of his holdings when the price doubles. If Bitcoin triples, he says that he would offload 30-40% and consider selling nearly everything if the market feels overheated. He also stated that he would leave a small portion, “a moonbag,” to capture any remaining upside potential.  Analyst Warns Last Chance To Accumulate BTC Crypto Waterman offers guidance for traders looking to position themselves ahead of Bitcoin’s anticipated parabolic move. He suggests that the next two to three weeks may be the last chance to accumulate Bitcoin before the rally begins. He also highlighted the importance of timing, recommending that investors buy Bitcoin during significant dips rather than chasing rising prices.  The analyst has hinted at knowing the timing of the expected market shakeout, emphasizing that market conditions over the coming days will determine the exact moment it happens. He warns that traders should prepare for volatility and short-term price fluctuations. He also reminds investors to stay disciplined during periods of market euphoria.  Related Reading: Bitcoin Feels The Weight Of Quantum Risk Concerns, Industry Leaders Warn He shared that investors and traders should follow the “Warren Buffett” principle of being cautious when others are greedy and opportunistic when others are fearful. This strategy eliminates emotional decision-making in trading and investing, allowing holders to make rational moves as the Bitcoin market approaches its final bull phase.  Featured image from Unsplash, chart from TradingView

Ethereum’s derivatives market is showing signs of a decisive shift beneath the surface, and price action is about to return above the $3,000 mark. On-chain data suggests trader behavior on major exchanges is shifting into a more accumulative phase. Even as ETH continues to linger below the psychologically important $3,000 price level, this metric indicates that market participants are already preparing for a bullish move and a test of direction in the days ahead. Related Reading: XRP ETFs Grow Past $60M As Price Struggles To Respond Ethereum Leverage Ratio Prints New All-Time High Data from on-chain analytics platform CryptoQuant shows that Ethereum’s Estimated Leverage Ratio on Binance has climbed to 0.611, the highest level ever recorded for this metric. The Estimated Leverage Ratio compares open interest to exchange reserves, and this offers insight into how much borrowed capital traders are deploying relative to available liquidity. Sustained increases in this ratio are a reflection of an increase in risk appetite from investors. It means that traders are committing larger leveraged positions in anticipation of favorable price movement. The current reading surpasses previous cycle peaks, and this environment can amplify price moves, since even modest spot price changes can trigger large liquidations when leverage is elevated. Ethereum: Estimated Leverage Ratio – Binance: CryptoQuant Another important metric points to an increase in Ethereum demand alongside record leverage. This metric is in the form of the Taker Buy Sell Ratio, which recently spiked to 1.13 on Binance. This is interesting because this level was last observed in September 2023. A reading above 1 indicates that market participants are executing more buy orders than sell orders. This combination of strong taker demand and rising leverage reveals optimism is now dominating short-term sentiment. The chart below shows the spikes in the Taker Buy Sell Ratio have more often than not coincided with periods of increased volatility. This buying pressure is now notable, with Ethereum trading around $2,900 in the past few hours, and this means that many traders are positioning ahead of a potential attempt to reclaim $3,000.  Ethereum: Taker Buy Sell Ratio – Binance. Source: CryptoQuant Analyst Maps Out Ethereum’s Path Back Above $3,000 Adding a price-based perspective to the on-chain signals, crypto analyst Ted Pillows has outlined a clear technical roadmap for Ethereum’s next move. According to his analysis, ETH recently tapped into an important demand zone between $2,700 and $2,800 and has started to rebound from that area. This move occurred when Ethereum broke below $3,000 again this week to reach a low of $2,781 on December 18, which is highlighted on the chart below as a major support band. Ethereum Price Chart. Source: @TedPillows On X Pillows noted that holding this support zone keeps the bullish structure intact. If buyers continue to defend the $2,700-$2,800 range, Ethereum could build enough momentum for a push to the $3,100 to $3,200 region. That zone also sits just above the psychologically important $3,000 level.  Related Reading: Bitcoin Feels The Weight Of Quantum Risk Concerns, Industry Leaders Warn The downside scenario is equally clear. A failure to hold the current support would expose Ethereum to a deeper pullback, with the chart pointing toward a potential retest of the $2,500 level. Featured image from Pexels, chart from TradingView

Discussions around XRP supply have resurfaced after a detailed post on X by an XRP investor known as Lord Belgrave, who offered a perspective that goes beyond the usual conversations about the XRP tokens locked in escrow.  According to the XRP investor, Ripple’s escrow mechanism is a deliberately structured system designed years in advance with institutional deployment in mind, and we might see more details in the near future as NDAs start to expire. Related Reading: Bitcoin Feels The Weight Of Quantum Risk Concerns, Industry Leaders Warn Why Ripple Created The XRP Escrow In The First Place Lord Belgrave’s remarks on the Ripple escrow system address questions about how XRP supply is managed, why the escrow exists in its current form, and what its role could be as Ripple’s infrastructure matures. The argument is that Ripple’s escrow was never designed internally as a pool of tokens just waiting for the best market distribution. In the discussions he describes, escrowed XRP was presented as locked supply governed by deterministic release schedules and multi-year planning phases.  The emphasis was on predictability and control, with supply aligned not to short-term trading dynamics but to institutional readiness. Although not publicly assigned or disclosed, portions of the supply were viewed as conceptually reserved for future system deployments.  Lord Belgrave claims these conversations occurred under strict non-disclosure agreements (NDAs) and involved institutions across Europe, the Middle East, and Asia. These institutions included central banks, systemically important financial institutions, multilateral bodies, the International Monetary Fund and the Bank for International Settlements. Ripple introduced its escrow system in 2017 to bring transparency and discipline to XRP supply. XRP was created with a total supply of 100 billion tokens. However, not all of these tokens were in circulation during launch. About 55 million XRP was locked into on-ledger escrow contracts during launch, with 1 billion XRP scheduled for release each month. However, Ripple also re-locks around 700-800 million XRP, and only 200-300 million XRP is effectively released into circulation each month. This rules-based approach has become a cornerstone of XRP’s tokenomics for the past few years. NDAs, Disclosure Timing, And What Could Come Next Lord Belgrave also pointed to a perceived change in institutional language following Ripple’s regulatory progress, interpreting it as a sign that long-standing NDAs may be nearing a disclosure phase. Systems are now moving from preparation into active deployment, and as such, previously reserved liquidity will become operational. That interpretation was met with a response from Vincent Van Code, another popular XRP enthusiast on X. In his view, many NDAs exist but disclosure does not occur automatically. He explained that information is typically revealed only when both parties formally agree to share specific confidential details.  Related Reading: XRP ETFs Grow Past $60M As Price Struggles To Respond From this point of view, the NDAs are so that Ripple does not disclose its counterparties and keeps them clear of regulatory scrutiny until compliance checks, audits, and approvals are complete. Any future transparency from Ripple and its partners would likely follow coordinated decisions instead of just NDA expiration. Featured image from Unsplash, chart from TradingView

Crypto payment platform MoonPay is poised to receive a significant fundraising boost as recent reports suggest that Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE), is exploring an investment in the company.  According to a Bloomberg report, which cited sources familiar with the discussions, MoonPay is close to finalizing this fundraising round and is targeting a valuation around $5 billion. New Regulatory Approval And Investment Talks Based in New York, MoonPay specializes in simplifying the trading of cryptocurrencies through various payment methods, including PayPal, Apple Pay, and Venmo. The platform also offers tools for users to send, receive, and manage stablecoins.  Notably, MoonPay recently obtained a Limited Purpose Trust Charter from the New York Department of Financial Services (NYDFS), a significant regulatory approval that complements its existing BitLicense.  Related Reading: Bitwise’s 2026 Crypto Forecast: Bitcoin, Ethereum, And Solana Poised For New Record Highs This charter enables MoonPay to expand its custody and other crypto services within New York, placing the company in league with established players like Coinbase (COIN) and PayPal, which also operate under the state’s strict digital asset regulations. The momentum for MoonPay continues to build, particularly with news that Caroline Pham, the acting chair of the Commodity Futures Trading Commission (CFTC), plans to join the firm as its chief legal and administrative officer.  CFTC Chair Caroline Pham to Join MoonPay Pham has been a notable figure in the regulatory landscape, having served on the CFTC’s board since April 2022 and becoming acting chair in January 2025.  She announced her intention to return to the private sector once a permanent chair was confirmed, which is expected to happen this week with Mike Selig’s anticipated confirmation. Under Pham’s leadership, the CFTC expedited several initiatives focused on cryptocurrencies, including the allowance for spot crypto trading on futures exchanges and the launch of a digital assets pilot program permitting the use of assets like Bitcoin (BTC) and Ethereum (ETH) in derivatives markets.  Additionally, Pham implemented various operational changes within the CFTC, reportedly leading to nearly $50 million in annual savings by enhancing governance and accountability. Related Reading: Optimism Grows In Crypto Market Structure Bill After Wednesday’s Senate Banking Meeting Pham articulated that her agenda as acting chair concentrated on executing a range of presidential executive orders aimed at promoting regulatory clarity and efficiency across government agencies.  Reflecting on her decision to join MoonPay, she emphasized the importance of people in her career choices, stating that meaningful connections guide her decisions. Her connection to MoonPay began through a dinner hosted by Christie’s Art + Tech in 2023, where she met MoonPay’s president, Keith Grossman. A conversation that started at the dinner evolved into a friendship and later professional discussions as Pham considered her options post-government. Grossman expressed confidence in Pham’s capabilities, stating, “MoonPay has really matured, and Caroline is the exact type of leader with the exact type of big bank and regulatory experience that’s needed for us to be able to move to the next level.” Featured image from DALL-E, chart from TradingView.com

In its latest report, asset manager and exchange-traded fund (ETF) issuer, Bitwise, has shared an optimistic 2026 outlook for the crypto market, anticipating significant growth, while predicting new all-time highs for Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Megatrends In Crypto?  Bitwise begins by asserting that Bitcoin is poised to break free from its traditional four-year price cycle, setting the stage for new records. Several factors contribute to this bullish forecast.  The dynamics of past cycles, including the Bitcoin Halving, interest rate fluctuations, and market booms and busts fueled by leverage, are expected to be less impactful in the coming years.  Related Reading: Bitcoin Bottom Forecast: Top Expert Predicts $40,000 Target Next Year, Here’s The Analysis Notably, the entry of large institutions like Citi, Morgan Stanley, Wells Fargo, and Merrill Lynch into the crypto space is anticipated to accelerate institutional allocations toward spot ETFs and enhance on-chain developments by 2026.  As a result, Bitcoin is projected to become less volatile, even indicating that it has demonstrated lower volatility than tech giant Nvidia throughout 2025.  The report also expresses strong optimism for Ethereum and Solana, particularly contingent upon the passing of the CLARITY Act. Bitwise believes that the growth of stablecoins and tokenization represents significant “megatrends,” with both Ethereum and Solana positioned to be the primary beneficiaries of this trend. ETFs To Acquire New Market Supply Institutional demand is forecasted to surge, with ETFs expected to acquire more than 100% of the new supply of Bitcoin, Ethereum, and Solana. By 2026, Bitwise expects that most institutional investors will have access to crypto ETFs.  As Bitwise projects the new supply hitting the market, estimates indicate roughly 166,000 Bitcoin valued at $15.3 billion, 960,000 Ethereum around $3.0 billion, and 23 million Solana coins amounting to $3.2 billion. However, the firm anticipates that ETFs will likely purchase even more than these figures suggest. The report further highlights that crypto equities are expected to outperform traditional tech stocks. While tech shares have surged by 140% over the past three years, crypto equities have significantly outpaced them.  The Bitwise Crypto Innovators 30 Index, which tracks companies providing crucial infrastructure and services for crypto assets, has rocketed by 585% during the same time frame. Bitwise believes this momentum will persist into 2026, driven by potential revenue growth, mergers and acquisitions, and a favorable regulatory landscape. Stablecoins As Scapegoats For Economic Woes As stablecoins gain traction, Bitwise cautions that they may become scapegoats for destabilizing emerging market currencies. Currently valued at nearly $300 billion, the market for stablecoins, which include tokenized versions of the US dollar like USDT and USDC, is predicted to reach $500 billion by the end of 2026.  With this rise, it’s anticipated that one or two countries may blame stablecoins for their financial troubles, despite the reality that people would not turn to stablecoins if their local currencies were stable. Related Reading: Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report Additionally, Bitwise forecasts the launch of over 100 crypto-linked ETFs in the United States, following the SEC’s issuance of new listing standards that enable these funds to enter the market under a unified regulatory framework. This regulatory clarity sets the stage for what Bitwise dubs “ETF-palooza” in 2026. Lastly, the firm predicts that half of Ivy League endowments will likely invest in cryptocurrencies, and that on-chain vault assets under management will double in the coming years. At the time of writing, Bitcoin was trading at $86,165, having recorded major losses of 2% and almost 7% over the past 24 hours and seven days respectively. Currently, the leading crypto is trading 31.8% below its all-time high of $126,000.  Featured image from DALL-E, chart from TradingView.com 

On Wednesday, a bipartisan meeting of the Senate Banking Committee, led by Senator Tim Scott, offered a cautiously optimistic outlook for discussions surrounding the anticipated crypto market structure bill.  Despite the absence of any markup hearings scheduled for this week, industry representatives and senators engaged in what many considered a productive dialogue regarding the evolving legislative landscape. Senators Collaborate With Industry Leaders Key figures from major crypto firms were among the attendees, including executives from Coinbase (COIN), Kraken, Chainlink, a16z, and Ripple, who have been increasingly involved in discussions aimed at fostering the positive growth of digital assets in the country.  According to Eleanor Terret from Crypto In America, the atmosphere of the meeting was described as “constructive and collaborative.” Senators from both parties engaged actively with industry representatives, asking insightful questions and exploring the nuances of the proposed bill text. Related Reading: Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report Participating senators included Democrats Mark Warner and Catherine Cortez Masto, who were noted for their engagement and for posing significant questions to both the industry representatives and Senate Banking staff. Three key areas of ongoing negotiation emerged from the discussions: the classification of tokens—distinguishing between securities and commodities, the roles of stablecoin interest versus rewards, and discussions surrounding decentralized finance (DeFi). The meeting’s update follows earlier confirmation from a committee spokesperson that the Banking Committee will not conduct a markup hearing prior to the upcoming Christmas break. Instead, the committee intends to monitor the bill’s progress for potential action in early 2026. Intensified Talks On Crypto Regulation In a statement released earlier this week, Jeff Naft, spokesperson for Chair Scott, emphasized the committee’s commitment to pursuing a bipartisan approach to address the complexities of digital asset market legislation.  “Chairman Scott and the Senate Banking Committee have made strong progress,” Naft noted, underscoring continued efforts to establish a new regulatory framework that would enhance clarity for the crypto sector and position the United States as a leader in the digital assets arena. Negotiations have intensified over the past week, with Republican members of the Banking Committee working closely with their Democratic counterparts to seek a viable compromise.  Related Reading: SEC Wraps Up Investigation Into Aave Protocol, Confirms CEO Stani Kulechov However, Democrats have also consistently called for additional time in the piece of legislation to address various concerns, particularly regarding financial stability, market integrity, and ethical considerations. Specific ethics concerns have arisen related to President Donald Trump and his family’s involvement in crypto-related business ventures, which reportedly have added to their wealth.  As Congress prepares to reconvene after the holiday break, immediate attention will shift to federal government funding, with the current funding bill set to expire on January 30. Featured image from DALL-E, chart from TradingView.com