bitcoinist.com

More than 100 new crypto exchange-traded products could hit the market in 2026 after a recent rule change by the US securities regulator, a researcher at Bitwise said. According to Ryan Rasmussen, that drop in red tape will let firms file many more ETPs without the long, individual approval process that slowed launches in the past.

Regulatory Shift Lowers Bar

The SEC issued generic listing standards in October that remove the need for separate 19(b) approvals for qualifying crypto ETPs. That step cuts out a process some issuers had to wait through — a delay that could stretch to a 240-day clock under earlier practice.

Reports have disclosed that the number of crypto ETPs already sits above 300, based on data from Fineqia International, which shows the market is no longer limited to just a few funds.

LIVE NOW – 10 Crypto Predictions for 2026: $1M BTC, Wall Street Onchain & ETF Takeover@BitwiseInvest’s @Matt_Hougan and @RasterlyRock return with 10 big predictions for 2026.

We get into:

– The $1M BTC case and why the classic 4-year cycle might be dead. – A world where ETFs… pic.twitter.com/fgELVnu6Zu

— Bankless (@Bankless) December 16, 2025

Institutional Appetite

Market watchers say new listings make it easier for issuers. But easier access is not the same thing as strong buying. Bitfinex analysts warned in August that altcoins are unlikely to enjoy a major rally until ETFs that track assets beyond the largest coins are available and attract real money. Liquidity, investor interest, and clear use cases still matter a lot. An ETF wrapper does not fix those basic needs by itself.

Issuers Race To Expand Menus

Rasmussen said issuers can now plan a variety of products — spot crypto, index funds, equity-linked ETPs, smart beta strategies and momentum plays.

He compared the change to moving from a tiny menu to a much larger one, saying investors will have more choices about where to put money. He also noted it has been about 15 years since the Winklevoss twins first filed for a Bitcoin ETF, and yet only a handful of crypto ETPs are widely held today.

Many New Products, Few Big Winners

Expect a wave of filings. But expect concentration too. In the wider ETF market, most assets gather in a few large funds while many other listings see thin trading.

That pattern is likely to repeat in crypto: dozens of niche products may be launched, while a smaller group gathers most assets under management. Issuers get to plant flags quickly. Investors will sort the winners from the rest over time.

WOW. The SEC has approved Generic Listing Standards for “Commodity Based Trust Shares” aka includes crypto ETPs. This is the crypto ETP framework we’ve been waiting for. Get ready for a wave of spot crypto ETP launches in coming weeks and months. pic.twitter.com/xDKCuj41mc

— James Seyffart (@JSeyff) September 17, 2025

Market Reaction Hinges On Demand

On Sept. 17, Bloomberg ETF analyst James Seyffart said the rule change could trigger a “wave of spot crypto ETP launches.”

He added that clearer rules could lead to several similar products being rolled out around the same time, raising competition among issuers while making it harder for weaker funds to gain traction.

Featured image from Unsplash, chart from TradingView

Рынок снова переключился из режима «вечный рост» в режим «все пропало». На этой неделе $BTC опускался ниже $90 000 на фоне ухудшения аппетита к риску: инвесторов напугали сигналы, что бум расходов на ИИ может приносить прибыль медленнее, чем ожидалось, а значит — давление на рискованные активы возвращается.

На этом фоне снова всплыл самый «токсичный» прайс‑таргет в крипте: $10 000 за биткоин. В медиа его активно продвигает Майк Макглоун из Bloomberg Intelligence — он связывает риск глубокой просадки с дефляционным сценарием после периода инфляции. Идея не в том, что «завтра будет $10k», а в том, что при переломе цикла рынок способен перегибать вниз так же агрессивно, как он перегибал вверх.

Но вот что многие обсуждения упускают: даже если вы верите в долгий рост $BTC, в коротком сроке вам все равно нужна инфраструктура, которая делает биткоин рабочим инструментом, а не только «твиттер‑тикером». Высокие комиссии, ограниченная пропускная способность и почти нулевая нативная программируемость — это банальная UX‑боль. И именно в этот раз «спасение» на рынке чаще ищут не в очередной мем‑истории, а в Bitcoin Layer 2 и инфраструктуре вокруг него (да, звучит менее азартно — зато гораздо практичнее). Проекты из этой ниши регулярно попадают в подборки лучших монет на 2025 год.

Отсюда логичный мостик к Bitcoin Hyper: если следующая фаза рынка будет про эффективность, скорость и приложения на биткоине, то проекты, которые дают $BTC нормальный слой исполнения, будут собирать внимание — даже если кто-то параллельно рисует страшилки про $10 000. В прошлых циклах похожая логика уже работала: когда рост замедляется, рынок начинает ценить то, что приносит реальную полезность.

КУПИТЬ BITCOIN HYPER

Как Layer 2 становятся стресс-тестом $BTC

Когда волатильность растет, капитал становится разборчивее. Инвесторы перестают покупать нарратив ради нарратива и начинают смотреть на то, где появится реальная активность: транзакции, комиссии, ликвидность, разработчики. Reuters как раз фиксирует сдвиг к более осторожным стратегиям и попыткам рынка «взрослеть» после резких движений.

Сейчас Bitcoin Layer 2 — это гонка сразу за двумя целями: масштабирование платежей и запуск полноценной on-chain экономики (DeFi, NFT, игры) вокруг биткоина, причем без потери доверия к базовому активу. У решений разные ставки: Lightning закрывает микроплатежи, rollup‑подходы обещают вычисления «вне L1», а нарратив BitVM подталкивает рынок к более сложным конструкциям без изменения консенсуса L1. Но пользовательский запрос один: «дайте скорость и комиссии уровня современных сетей, не ломая доверие к $BTC».

И вот тут Bitcoin Hyper появляется как одна из ставок на «биткоин с нормальной скоростью и программируемостью» — без необходимости убеждать людей, что им нужно отказаться от $BTC ради очередного L1. Звучит здраво. И именно такие утилитарные истории обычно и начинают «готовить» следующую ротацию цикла.

Почему Bitcoin Hyper может запустить новый цикл всего биткоина

Bitcoin Hyper продвигает понятную идею: модульная архитектура, где Bitcoin L1 остается слоем расчетов и доверия, а исполнение уходит в быстрый L2 с интеграцией Solana Virtual Machine. SVM — ставка на высокую производительность и привычный для разработчиков стек, особенно если нужно быстро запускать DeFi‑механику, NFT‑платформы или игровые dApp.

Ключевой мессадж проекта сформулирован максимально прямо: «первый Bitcoin Layer 2 с SVM‑интеграцией», который нацелен на ультра‑низкие задержки исполнения. Это важно по очень практичной причине: без быстрых смарт‑контрактов биткоин‑экономика почти неизбежно утекает в другие экосистемы — туда, где можно делать свопы, лендинг, стейкинг и более сложные стратегии без ожидания блоков и без боли из-за комиссий. А если следующий рыночный цикл действительно будет про полезность, то инфраструктура часто выигрывает у шума — мысль скучная, зато рабочая (и трейдеры, которые следят за такими сдвигами, обычно отмечают это первыми).

Интерес к истории подогревают и цифры из пресейла: проект уже собрал $29 556 732,75, а цена токена составляет $0,013435. Это не гарантия успеха — это просто маркер спроса. Выглядит любопытно и активность крупных кошельков: трекинг «китов» фиксирует две заметные покупки на общую сумму около $396 тыс., а крупнейшая сделка — примерно $53 тыс. от 19 ноября 2025 года.

Финальный штрих — стейкинг‑механика после TGE: заявлен высокий APY (без раскрытия ставки), моментальный запуск, 7‑дневный вестинг для пресейл‑стейкеров и фокус на вознаграждения за участие в комьюнити. Риск тут очевидный: без конкретных параметров доходности рынок будет требовать прозрачности, иначе ожидания легко превращаются в разочарование. Это не «минус проекта», а скорее проверка на зрелость коммуникаций — насколько команда Bitcoin Hyper готова раскрывать детали вовремя.

Michael Saylor tossed a compact bit of Bitcoin game theory onto X on Tuesday and it set off the predictable kind of fight: technical details colliding with ideology.

“The Bitcoin Quantum Leap: Quantum computing won’t break Bitcoin—it will harden it,” Saylor wrote, adding: “The network upgrades, active coins migrate, lost coins stay frozen. Security goes up. Supply comes down. Bitcoin grows stronger.”

Short version: if quantum ever becomes real enough to threaten today’s signature schemes, Bitcoin can upgrade. Coins that are actively managed move to new, quantum-resistant output types. Coins that aren’t—because the keys are lost, the owner is gone, or the UTXOs are simply abandoned—should effectively get stuck. Frozen.

Bitcoin Developers And Community React

That’s the part people latched onto, because it’s not just a technical question. It’s a social one. Who gets to decide which coins are “lost” versus “just old”? Jameson Lopp, one of the loudest voices pushing for practical quantum-readiness, basically said: yes, and welcome aboard. “I agree, lost coins should stay frozen. Glad to hear you’ll support my BIP!”

Then the counterpunch arrived fast. “We have no right to freeze another man’s bitcoin,” wrote Wicked (@w_s_bitcoin), arguing any attempt to lock legacy coins could spark a contentious chain split. He also floated a more narrative-friendly twist: what if Satoshi left early keys exposed as a “bounty” for quantum computers?

Lopp’s answer wasn’t sentimental. It was node-level realism. “On the flip side, every node runner has the right to refuse to accept coins they believe are most likely to have been stolen by a quantum attacker,” he wrote, framing it less as confiscation and more as a defensive filter to preserve the integrity of circulating supply. Later, he conceded the uncomfortable core: “Correct, the best you can do is come up with an extremely lengthy migration window.”

That “migration window” is doing a lot of work here. The draft proposal described by Lopp and co-authors (Christian Papathanasiou, Ian Smith, Joe Ross, Steve Vaile, Pierre-Luc Dallaire-Demers) sketches a three-phase path: first a soft fork that nudges (or forces) new sends into proposed quantum-resistant outputs, then a later rule change that makes legacy ECDSA/Schnorr spends invalid after a long deadline, and an optional third phase to recover unmigrated coins if the rightful owner can prove control through some new mechanism.

It sounds orderly on paper. It never is in practice. Because you can’t prove theft in Bitcoin’s older UTXOs. Wicked hammered that point: there’s “no way to prove whether older coins were stolen or just forgotten and then moved later by the rightful owner.” The fear, in his view, is basically supply paranoia dressed up as security.

Lopp didn’t deny the incentives. He leaned into them. “I can assure you that many entities in the industry care about supply shocks causing the value of their coins to plummet; businesses still use dollars as their unit of account.” And then, in a line that reads like a homework assignment for anyone who thinks this ends cleanly: “Your homework is to figure out the power dynamics…”

Outside the Bitcoin-only trench fight, other corners of crypto mostly reacted with a raised eyebrow. Nic Carter, a founding partner at Castle Island Ventures, demanded specifics: “Explain in detail how all of those things will happen […] Which core devs has microstrategy funded to work on the multiple hard and soft forks that will be required for this plan? Which quantum researchers?”

BitMEX Research pushed back on the “hardfork” framing. “What makes you think we need a hardfork?” it asked, arguing the transition could be painful without literally being a hard fork. Another account summed up the mood: “You can freeze coins with a soft fork.”

Then again—soft fork or not—getting broad social consensus to lock unmoved coins is its own nightmare. “The idea that there would be social consensus over locking unmoved coins is crazy,” one user wrote. “In 1,000 realities that doesn’t happen once.”

And, quietly, a reminder from Willem Schroe (Botanix CEO): “Yes, there are quantum developments but nothing remotely close to a breakthrough. That said, our current cryptographic solutions are not even remotely close to ready or battletested so quantum resistance work is definitely worth it. Very small risk but would have a big impact.”

So overall, none of this is about quantum tomorrow. It’s about Bitcoin deciding what it is when faced with a threat that can’t be patched with vibes. The tech path is hard. The politics might be harder.

At press time, Bitcoin traded at $86,761.

Top meme coins Dogecoin and Shiba Inu have slipped into the background of recent times, giving room for other unexpected candidates to shine. Over the last week, there have been some interesting rallies in the meme coin space, but none from the usual suspects. Instead, meme coins, which were believed to be long dead, have seen a revival, with prices more than doubling in 10 days. This report takes a look at the two meme coins that have dominated the sector over the last few weeks.

PIPPIN Climbs The Ranks Of Meme Coins Very Quickly

Like other meme coins, PIPPIN saw an initial run-up following its initial launch back in November 2024, and as attention shifted to the next shiny meme coin, it died a slow death. By 2025, the coin was all but forgotten before its shocking revival in November 2025.

As data analytics platform Bubblemaps shared, there seemed to be a coordinated accumulation trend from a number of connected wallets. Between October 24 and November 23, 50 wallets, funded from the HTX exchange in very tight timeframes, had received similar amounts of Solana (SOL).

Once received, the wallets, which previously had no enchain activity, then proceeded to buy the PIPPIN token. By the time the buying was done, the wallets had bought up $19 million worth of PIPPIN, giving them control of half of the meme coin’s supply.

What followed was what has been referred to as a coordinated pump, causing the meme coin to rise 1,000%, or 10x, in the space of one week. However, PIPPIN did not stop there and has since risen by more than 2,000% since then, with its market cap crossing $400 million to new all-time highs. CoinMarketCap data shows a 146% increase in the last week alone, making it the top performer among the leading meme coins and putting it ahead of the likes of FARTCOIN and FLOKI.

JELLYJELLY Doubles In One Week

Another of the meme coins that seemingly came back from the dead is JELLYJELLY, whose initial rally had shocked the market. Just like PIPPIN, JELLYJELLY’s rise had also begun with a coordinated accumulation among a number of wallets. Bubblemaps reported this back in November, showing that seven wallets had withdrawn 20% of the meme coin’s supply from the Gate and Bitget exchanges.

With the accumulation done, the JELLYJELLY price had risen by more than 600% to reach a new all-time high just short of $500 million back in early November. The price had then retraced, reaching below $100 million, but has seen another revival this week.

CoinMarketCap data shows the JELLYJELLY price rose 143% in one week, to put it above the $100 million market cap level once again. This makes it the second-best performer behind PIPPIN among the top 30 meme coins over the last week.

As concerns about the potential risks posed by quantum computing to the cryptocurrency landscape grow, the Solana Foundation has taken new measures by announcing a collaboration with Project Eleven, which specializes in post-quantum security.

Solana’s Focus On Long-Term Security 

In a Tuesday press release, the Solana Foundation outlined its commitment to fortifying the cryptocurrency’s ecosystem against the implications of quantum computing. 

Through this initiative, Project Eleven has conducted a comprehensive threat assessment and successfully prototyped a functioning testnet utilizing post-quantum digital signatures. 

Under their engagement, Project Eleven undertook a risk analysis to evaluate how forthcoming breakthroughs in quantum computing could impact various facets of Solana’s infrastructure. Areas scrutinized included user wallets, validator security, and the foundational cryptographic assumptions that underpin the network. 

Moreover, Project Eleven has implemented a working post-quantum signature system on a Solana testnet, demonstrating that quantum-resistant transactions can be both practical and scalable.

Matt Sorg, VP of Technology at the Solana Foundation, emphasized the organization’s approach: “Our responsibility is to ensure Solana remains secure not just today, but decades into the future.” 

He noted that the culture of innovation within the Solana ecosystem would continue to thrive with the upcoming release of a second client and an advanced consensus mechanism this year. 

Alex Pruden, CEO of Project Eleven, echoed this sentiment, stating, “Solana didn’t wait for quantum computers to become a headline problem. They invested early, asked the hard questions, and took actionable steps today.” 

Industry Leaders Urge Speedy Action

Solana’s stance comes amid alarming reports indicating that quantum computers could potentially undermine blockchain security by developing algorithms capable of deciphering private keys. 

This scenario raises significant concerns for any digital assets operating on blockchain technology that rely on digital signatures, making them vulnerable to quantum hacking. As such, industry experts are actively exploring various measures to bolster cryptocurrency networks against these threats. 

Doug Finke, Chief Content Officer at Global Quantum Intelligence, pointed out that several groups are integrating the three post-quantum cryptography (PQC) algorithms established by NIST into their platforms. 

He emphasized the uncertainty surrounding when a sufficiently powerful quantum computer might be developed, raising the stakes even further. Finke stated, “What’s worse, if an unfriendly party does develop such a computer, they may not let anyone know about it.”

Currently, several cryptocurrencies have already begun incorporating quantum-safe cryptography into their architecture, including Quantum Resistant Ledger (QRL), Cellframe, and Bitcoin Quantum from BTQ. 

Among those issuing warnings about the looming threats from quantum computing are notable figures such as Solana co-founder Anatoly Yakovenko, Capriole Investment founder Charles Edwards, and representatives from major firms like BlackRock and Google.

Yakovenko has urged the Bitcoin community to accelerate efforts to implement quantum-resistant upgrades. He believes there is a 50% chance of a significant quantum breakthrough occurring within the next five years, further emphasizing the need for vigilance.

At the time of writing, SOL is trading at $127, which is a 6.7% decrease in price over the past seven days. Compared to the all-time high of $293 reached earlier this year, SOL is trading at almost 56% below this threshold. 

Featured image from DALL-E, chart from TradingView.com 

On-chain data shows the Bitcoin Inter-exchange Flow Pulse (IFP) has rapidly been going down recently, a sign of cooling derivatives interest.

Bitcoin IFP Has Witnessed A Plunge Recently

In a new post on X, CryptoQuant community analyst Maartunn has talked about the trajectory that the Bitcoin IFP has been following recently. The IFP refers to an on-chain indicator that measures the BTC flows taking place between spot and derivatives exchanges.

When the value of this metric is going up, it means investors are ramping up transactions to derivatives platforms. Such a trend can be a sign that demand for speculation is on the rise.

On the other hand, the indicator witnessing a decline implies fewer coins are traveling from spot exchanges to derivatives ones. This kind of trend can suggest traders are lowering their appetite for risk.

Now, here is the chart shared by Maartunn that shows the trend in the Bitcoin IFP and its 90-day moving average (MA) over the past decade:

As is visible in the above graph, the Bitcoin IFP was witnessing an uptrend in the last few months of 2024, but with the start of this year, a reversal in the indicator occurred. The switch to a downtrend meant that its value slipped below the 90-day MA, something that has historically signaled bearish conditions.

Over the course of 2025, the IFP has continued its downward trajectory, but lately, the decline has accelerated, indicating that derivatives interest is cooling off fast.

Two cycles ago, the IFP sliding below its 90-day MA led into the 2018 bear market. In the 2021 bull market, the bear signal on the IFP was initially followed by the second half of that bull run, but then the 2022 bear market took over as the metric failed to recover.

A similar trend has been witnessed this year as well, with Bitcoin exploring new all-time highs (ATHs) despite the IFP suggesting bearish conditions. The recent acceleration in the indicator’s downtrend, however, has been accompanied by a bearish period in the asset’s price. Only time will tell whether this is a repeat of the pattern from the last cycle, or if risk appetite will make a comeback among investors and the IFP will reverse course.

In some other news, the Bitcoin treasury companies have seen their holdings go up recently, despite the drawdown that the market has faced, as pointed out by Glassnode co-founder Rafael in an X post.

From the chart, it’s apparent that since Bitcoin started declining from its ATH above $126,000, the treasury companies have still continued a net upward trajectory. “Not seeing much of the alleged forced selling here despite some equities trading below mNAV,” noted Rafael.

BTC Price

At the time of writing, Bitcoin is trading around $87,500, down over 7% in the last week.

Global payment giant Visa has announced the launch of stablecoin settlement in the United States using Circle’s USDC on the Solana Blockchain. The expansion follows the company’s ongoing efforts to modernize its settlement layer and be at the forefront of the emerging sector.

Visa Expands USDC Settlement To The US

On Tuesday, Visa unveiled the expansion of its stablecoin settlement service to financial institutions in the US, allowing local issuer and acquirer partners to settle with Visa in Circle’s USDC for the first time.

In the statement, the payments giant highlighted that issuers will benefit from faster fund movement over blockchains, seven‑day availability, and enhanced operational resilience across weekends and holidays “without any change to the consumer card experience.”

Initial participants include Cross River Bank and Lead Bank, which have started settling with Visa in USDC on the Solana blockchain. Meanwhile, a wider rollout in the US is planned through 2026.

In addition, Visa shared its plan to utilize Arc, a new Layer 1 blockchain developed by Circle, which is currently in public testnet, for USDC settlement within its network and to operate a validator node once Arc goes live.

The global payments giant underscored that the launch marks a significant milestone in the company’s stablecoin settlement pilot program and strategy to modernize its settlement layer, which underpins global commerce.

Notably, Visa first experimented with USDC settlement in 2021 and became one of the first major payments networks to pilot stablecoin settlement using USDC in 2023. Now, Visa has reported more than 130 stablecoin-linked card issuing programs in over 40 countries.

Last month, the company announced the expansion of its stablecoin settlement in Central and Eastern Europe, the Middle East, and Africa (CEMEA) with a partnership with crypto infrastructure company Aquanow.

“Visa is expanding stablecoin settlement because our banking partners are not only asking about it – they’re preparing to use it,” affirmed Rubail Birwadker, Global Head of Growth Products and Strategic Partnerships, Visa.

“Financial institutions are looking for faster, programmable settlement options that integrate seamlessly with their existing treasury operations. By bringing USDC settlement to the U.S., Visa is delivering a reliable, bank‑ready capability that improves treasury efficiency while maintaining the security, compliance and resiliency standards our network requires,” he added.

Meanwhile, Circle emphasized the importance of integrating fully reserved stablecoins into institutions’ settlement flows. Nikhil Chandhok, Chief Product and Technology Officer at Circle, noted that “it helps card-issuing financial institutions modernize treasury and unlock new services while retaining the transparency and trust that USDC is known for.”

Visa’s New Stablecoin Advisory Unit

This week, Visa also announced the launch of its Stablecoins Advisory Practice (SAP) service by Visa Consulting & Analytics (VCA) for insights and recommendations to guide banks, fintechs, merchants, and businesses on market fit, strategy, and implementation.

The new stablecoins advisory unit is set to offer a suite of services “designed to guide strategy and implementation amid the growing prevalence and stability of stablecoin infrastructure and emerging regulatory standards.”

Notably, it will provide training and market trend programs, including a new Visa University course, strategy development, market entry planning, use case sizing, go-to-market planning, and Technology enablement for stablecoin integration.

Visa affirmed that it recorded a $3.5 billion stablecoin settlement volume as of November 30, which has led businesses to its new Stablecoins Advisory Practice for growth opportunities.

Matt Freeman, senior vice president at the Navy Federal Credit Union, stated that “Stablecoins may represent an opportunity to enhance speed and lower cost in payments, so with the support of Visa, we are evaluating how this technology could fit into our broader strategy to deliver meaningful value to our 15 million members worldwide.”

United States President Donald Trump said he would review the case of Keonne Rodriguez, a co-founder of the Samourai Wallet, and signaled he might consider clemency.

According to reporters present at a White House exchange, Trump said he would “take a look” and asked that the matter be examined by the Attorney General.

The comment came after federal prosecutors secured guilty pleas and later sent Rodriguez to prison.

Statement On A High-Profile Sentencing

According to the US Attorney’s Office for the Southern District of New York, Rodriguez and a co-defendant, William Lonergan Hill, pleaded guilty to charges tied to running an unlicensed money-transmitting business and related conspiracy counts.

Reports have disclosed that the service was linked to more than $230 million in criminal proceeds. Prosecutors said those transfers were connected in their factual recitation to narcotics trafficking, darknet markets, cyber intrusions, frauds, sanctioned jurisdictions and other criminal activity.

Sentencing And Legal Outcomes

Based on court filings and public notices, the guilty pleas were entered in late July 2025 and sentencing took place on November 19, 2025.

The Department of Justice has also pursued forfeiture tied to the amounts it described in court, and fines were assessed at the time of sentence.

These actions were carried out by federal prosecutors in Manhattan, who handled the investigation and prosecution.

Responding to Trump’s remarks, Rodriguez said “This President knows all about lawfare.”

I have always said that the most challenging aspect of getting a pardon for me and Bill would be getting the attention of @realDonaldTrump. He is very busy with many people competing for his attention. Today, thanks to the journalist at Decrypt, the President is aware of our… https://t.co/lmYljfFax9

— Keonne Rodriguez (@keonne) December 15, 2025

Trump Pardon: How A Presidential Review Might Move Forward

The process for clemency typically involves the Office of the Pardon Attorney at the Justice Department, which vets petitions and may seek input from prosecutors and judges.

The president, however, has broad constitutional authority to grant pardons or commutations for federal offenses.

In this case, press accounts say the president asked that the Attorney General examine the matter, which could lead to a formal review of any clemency petition.

Political And Public Reactions

Reports have varied in tone, with some outlets focusing on the scale of the funds prosecutors said were moved — $237 million — and others highlighting the unusual nature of a president publicly saying he would “look into” an active clemency matter shortly after sentencing.

Legal experts note that public comments from a sitting president can speed attention to a case, but they do not guarantee relief.

Opinions among commentators are mixed; some urge careful review while others stress that federal sentences reflect convictions from established court processes.

Featured image from Bloomberg via Getty Images, chart from TradingView

Bitcoin has lost the critical $90,000 level and is now hovering near the $86,000 area, a zone that is quickly becoming the last meaningful support in the current structure. The recent decline has unfolded with little resistance from buyers, as bullish participation has largely disappeared from the market. Momentum-driven demand has faded, spot buying remains weak, and rallies are consistently being sold. As a result, a growing number of analysts are openly shifting their outlook toward a bear market scenario.

According to a recent report by on-chain analyst Axel Adler, conditions beneath the surface reinforce this pessimistic view. Derivatives positioning remains firmly negative, indicating that short sellers continue to dominate short-term market dynamics.

At the same time, market sentiment metrics have fallen to levels historically associated with major capitulation phases. Fear is widespread, confidence is fragile, and risk appetite across crypto markets is clearly deteriorating.

The combination of negative futures positioning and extreme investor fear creates a challenging environment for Bitcoin. Rather than signaling an immediate bottom, these conditions suggest that selling pressure remains structurally embedded in the market.

Futures Positioning And Sentiment Signal Deep Stress

Adler explains that the Bitcoin Positioning Index provides a clear view of who controls the derivatives market. The indicator aggregates changes in open interest and funding rates to identify the dominant direction of futures positioning.

At present, the index sits at -4, firmly in negative territory. This reading corresponds to a bearish regime and aligns with an active downtrend signal. Visually, the chart is dominated by purple bars over the past four weeks, highlighting sustained pressure from short positions and a lack of bullish conviction in derivatives markets.

Negative positioning combined with falling prices confirms that bears remain in control of short-term market dynamics. According to Adler, a meaningful regime shift will only occur if the index returns above zero and the price consolidates above local resistance levels. Without that confirmation, downside risk remains elevated.

The Bitcoin Fear and Greed Index reinforces this bearish backdrop. The index, which tracks market sentiment from extreme fear to extreme greed, has fallen deep into the extreme fear zone and well below the 25th percentile.

The 30-day SMA has dropped to 20, while the 90-day SMA sits near 32, signaling persistent sentiment deterioration since September. While extreme fear alone does not guarantee a reversal, its alignment with negative futures positioning suggests that selling pressure is structural rather than purely emotional.

Bitcoin Tests Critical Support As Downtrend Persists

The chart shows Bitcoin trading under sustained technical pressure after failing to reclaim higher levels. Price has decisively broken below the medium-term moving averages and is now consolidating around the $87,000–$88,000 zone, a level that previously acted as support during the mid-cycle advance. The rejection from the blue moving average signals that bullish momentum has weakened significantly, while the downward slope confirms a loss of trend strength.

More importantly, Bitcoin is now hovering just above the red long-term moving average, a level that historically acts as a key structural support during broader corrections. The recent bounce from the $85,000–$86,000 area suggests that buyers are still present, but the response lacks conviction. Volume remains muted compared to earlier distribution phases, indicating hesitation rather than aggressive accumulation.

Structurally, the sequence of lower highs since the $120,000 peak remains intact. Until Bitcoin can reclaim the $92,000–$95,000 range and hold above the declining mid-term average, downside risks persist. A clean loss of the long-term support could expose deeper retracement levels toward the low $80,000s.

In the short term, this price behavior reflects a market in repair mode. Bitcoin is no longer trending, but it has not yet shown the strength required to invalidate the corrective structure.

Featured image from ChatGPT, chart from TradingView.com

Quantum risk has been getting louder in the Bitcoin conversation over the past few months. The question is whether that noise translates into price pressure in 2026.

Grayscale’s answer, in its updated 2026 Digital Asset Outlook: “Dawn of the Institutional Era” (last updated Dec. 15), is essentially no. Quantum belongs on the risk register and in the research pipeline, not on the list of themes the firm expects to steer Bitcoin’s valuation next year. In its view, it’s not “likely to move prices” in 2026.

Why The Quantum Computer Threat Won’t Move Bitcoin Price In 2026

That call matters because the quantum debate arrived while the market is already looking for new failure modes — everything from “the four-year cycle is dead” to renewed anxiety about large holders distributing supply. Grayscale’s framing is simpler: the threat is real in theory, but the relevant timelines don’t line up with a 2026 trading horizon.

The firm lays out the core concern in plain terms: “Theoretically, a sufficiently powerful quantum computer could derive private keys from public keys, which could then be used to create valid digital signatures to spend users’ coins. Therefore, Bitcoin and most other blockchains — and virtually everything else in the economy that uses cryptography — will eventually need to be updated for post-quantum tools.”

The key word is eventually. Grayscale points to expert estimates suggesting a machine capable of breaking Bitcoin’s cryptography is “unlikely before 2030 at the earliest.” That pushes 2026 into a preparedness bucket: more research, more coordination, more work on mitigation — but not a year where markets suddenly apply a quantum discount because a lab headline hit the wires.

Grayscale makes that explicit. “However, expert estimates suggest a quantum computer powerful enough to break Bitcoin’s cryptography is unlikely before 2030 at the earliest. Research on quantum risk and community preparedness efforts will likely accelerate in 2026, but this theme is unlikely to move prices, in our view,” the firm writes.

In the report’s taxonomy, quantum sits closer to “high attention, low near-term impact” than to a true 2026 catalyst. Grayscale groups it with other heavily discussed trades that may not drive returns on a one-year view, including the digital-asset-treasury (DAT) narrative that had its Michael Saylor copycat phase in 2025.

The broader outlook is firmly “institutional era” in tone. Grayscale expects 2026 to extend structural shifts in how digital assets are owned and allocated, driven by macro demand for alternative stores of value and an improving regulatory backdrop that reduces frictions for large investors. In that context, the firm is calling for Bitcoin to set a new all-time high in the first half of 2026, while arguing the classic four-year halving cycle is becoming less dominant as spot ETPs and slower-moving portfolio allocation play a bigger role.

That’s also why quantum looks like a mismatch for the 2026 price question. If the marginal buyer is an allocator working through due diligence checklists, the market’s response function changes. Those investors do not ignore tail risks — but they also tend not to liquidate positions on long-dated, low-probability scenarios unless the timeline becomes immediate.

Grayscale highlights one other, quieter point that fits the institutional framing: Bitcoin’s supply schedule. The report notes investors can be “highly confident” the 20 millionth bitcoin will be mined in March 2026 — a predictable, verifiable milestone that speaks to the protocol’s rule-based issuance.

So will quantum computing suppress Bitcoin in 2026? Grayscale’s base case is no — not because the problem is imaginary, but because it isn’t close on the timeline markets usually need before they reprice risk. For next year, the firm expects the bigger drivers to look familiar, even if they arrive in more institutional packaging: rates, regulation, ETP plumbing, and steady absorption of BTC into mainstream portfolios.

Quantum remains a theme to track. Just not, in Grayscale’s view, the theme that sets the price in 2026.

At press time, Bitcoin traded at $87,184.

Ethereum is trading below the $3,000 level as selling pressure continues to weigh on the broader crypto market. After weeks of unstable price action, ETH has failed to reclaim key psychological and technical levels, reinforcing a fragile market structure.

Sentiment remains decisively bearish, with fear and even apathy starting to dominate trader behavior. Volatility has compressed, participation has thinned, and many analysts are increasingly pointing toward a prolonged bear market scenario extending into 2026.

This lack of conviction is not limited to retail participants. According to data shared by Lookonchain, two large whales dumped a combined 14,000 ETH, worth approximately $40.82 million, in just the past two hours. Such aggressive selling during already weak conditions adds pressure to an asset that is struggling to attract sustained demand.

While isolated whale activity does not define the broader trend on its own, timing matters. Large distributions during periods of low liquidity often amplify downside moves and reinforce negative sentiment across the market.

Ethereum Whale Selling Meets Long-Term Conviction

Arkham data shared by Lookonchain reveals fresh evidence of large-scale selling as Ethereum trades under sustained pressure. Address 0x2802 sold 10,000 ETH, worth approximately $29.16 million, at an average price of $2,915.5 through decentralized exchanges.

Shortly after, another whale, 0x4c0A, offloaded 4,000 ETH, valued at around $11.66 million, distributing the sale across multiple centralized venues, including OKX, Binance, KuCoin, and Gate. The timing and coordination of these moves reinforce the current bearish tone, particularly as liquidity remains thin and broader market sentiment leans defensive.

In the short term, such activity adds to downside pressure and fuels uncertainty among smaller investors, who often interpret whale selling as a signal of deeper weakness ahead. However, price action and sentiment do not tell the full story. Despite the drawdown, Ethereum’s fundamentals continue to strengthen at a pace rarely seen before. Institutional adoption is accelerating, not slowing.

Most notably, JP Morgan recently announced the use of Ethereum to launch its first tokenized money-market fund, a milestone that underscores growing confidence in Ethereum as a settlement and financial infrastructure layer. While markets may remain bearish in the near term, the divergence between price sentiment and fundamental progress is becoming increasingly difficult to ignore.

Ethereum Price Struggles to Hold Key Weekly Support

Ethereum continues to trade under pressure on the weekly chart, with price now sitting around $2,950 after a sharp rejection from the $3,200–$3,300 region. This area previously acted as a key pivot zone and has now clearly flipped into resistance. The inability to reclaim it confirms that sellers remain in control of the medium-term structure.

From a trend perspective, ETH is consolidating around its 200-week moving average (red line), a historically important level that often determines whether corrections remain cyclical or evolve into deeper bearish phases. So far, this moving average is acting as dynamic support, preventing a more aggressive breakdown. However, momentum remains weak, and upside follow-through is limited.

The 50-week and 100-week moving averages (blue and green lines) are beginning to flatten and converge, reflecting indecision and reduced trend strength. Volume also remains muted compared to prior expansion phases, suggesting that neither strong accumulation nor capitulation is taking place at current levels.

Structurally, ETH remains in a wide consolidation range between $2,500 and $3,300. A weekly close below the $2,800–$2,900 area would expose downside toward the lower end of that range. Conversely, reclaiming $3,300 is required to reestablish bullish momentum. Until then, Ethereum remains technically fragile despite its long-term fundamentals.

Featured image from ChatGPT, chart from TradingView.com

The market entered a sharper pullback this week after the Senate confirmed that a long-anticipated crypto structure legislation will not advance before the end of the year.

Related Reading: Crypto Market Structure Bill Stalled: Senate Banking Committee Pushes Markup To Early 2026

What many investors had hoped would be a closing act for regulatory clarity in 2025 instead became another extension of uncertainty, triggering risk-off behavior across digital assets and related investment products. The delay arrived at a fragile moment for markets grappling with growing sensitivity to policy signals from Washington.

Bitcoin slid below the $86,000 level, while the broader digital asset market shed roughly $140 billion in capitalization within hours. The total market value has fallen to around $2.93 trillion, its lowest level in several weeks, as traders reassessed regulatory timelines that now extend into early 2026.

Senate Pushes Crypto Market Structure Talks Into 2026

The Senate Banking Committee confirmed it will not hold a markup hearing on the crypto market structure billbefore Congress adjourns for the holidays.

While committee leadership says bipartisan negotiations are progressing, lawmakers acknowledged that time has run out to move the bill forward in 2025. Chairman Tim Scott’s office reiterated that discussions with Democratic counterparts are ongoing, with a markup now expected in early 2026.

The proposed legislation is designed to clarify how digital assets are regulated in the U.S., including defining the respective roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Under current drafts, the CFTC would oversee spot crypto markets, while securities laws would be more clearly applied to token issuers and intermediaries. Parallel efforts in the Senate Agriculture Committee, which also oversees the CFTC, have yet to reach a markup stage, further slowing the process.

Market Reaction Highlights Fragile Sentiment

The legislative setback quickly translated into market pressure. Bitcoin fell from near $90,000 to the mid-$85,000 range, while Ethereum dropped below $3,000. Additionally, the average crypto RSI fell to around 32, indicating that the market is within oversold territory.

Analysts pointed to elevated derivatives positioning and heavy open interest around key price levels as factors amplifying downside moves. Exchange-traded products reflected the shift, with Bitcoin and Ethereum spot ETFs recording significant outflows as institutional investors reduced exposure.

Some market observers noted that unrealized losses have risen sharply, while funding conditions and leverage remain stretched, making prices more vulnerable to negative catalysts such as policy delays.

Regulatory Uncertainty Persists Despite Agency Actions

Despite the legislative pause, regulators have continued to act within existing frameworks. The SEC has issued staff guidance and hosted public discussions on how current securities laws apply to crypto activities, while the CFTC has taken steps to expand supervised spot market participation.

However, industry participants say these measures fall short of the comprehensive clarity the market structure bill is meant to deliver.

Related Reading: Terra Founder Do Kwon Could Face 30-Year Sentence In Potential South Korean Trial

The Senate’s decision reinforces a familiar pattern for crypto markets: policy delays translating into heightened volatility. With negotiations set to resume in early 2026, investors will be left to navigate another extended period where regulatory questions remain unresolved.

Cover image from ChatGPT, BTCUSD chart on Tradingview

Although the anticipated crypto market structure bill, also known as the CLARITY Act, has not yet been passed into law, its proposed framework is already influencing conversations around how major cryptocurrencies could be classified and regulated in the future. 

The implications could be particularly significant for Ripple and XRP, as the Act introduces interesting standards that could determine whether a digital asset is treated as a security or a commodity under US law.

Reality Check Under The Clarity Act

US lawmakers are moving closer to finalizing digital asset legislation, and attention across the crypto market is increasingly turning toward the Digital Asset Market Clarity Act, commonly known as the CLARITY Act. 

At the heart of the CLARITY Act is an effort to replace interpretations of decentralization with clear criteria. One of those criteria is a supply concentration threshold, which states that no single entity or coordinated group should control 20% or more of a blockchain’s native asset supply for the network to qualify as mature.

A recent post on X by an XRP community member known as Arthur has brought focus to this issue. Arthur highlighted the proposed 20% ownership threshold embedded in the CLARITY Act’s definition of a mature blockchain, noting that Ripple’s compliance with this benchmark could push XRP firmly toward commodity status and is the only path to global adoption.

However, this provision directly intersects with Ripple’s escrow holdings. The payment currently controls about 40% of the total XRP supply through escrow mechanisms. This has long been a focal point in debates over decentralization and how much control Ripple has over XRP’s supply.

What This Means For Ripple And XRP

Under the CLARITY Act’s framework, reducing escrow control below the 20% threshold would help demonstrate that XRP no longer depends on a single issuer’s dominance. That would back up the claim that XRP functions as a decentralized digital commodity rather than a security tied to Ripple’s corporate actions. 

In order to comply with the Act, Ripple would need to find a way to slash its current XRP holdings by almost 50%. However, if the CLARITY Act is eventually passed in its current form, it does not automatically mean that Ripple would be forced into a direct sale of its XRP holdings, nor does it mandate that its XRP holdings will be handed over to another holder. 

What it does introduce is a clear structure. Ripple would need to demonstrate that it does not exercise control over XRP’s circulating or total supply if the cryptocurrency is to qualify as a mature blockchain asset under US law. 

How that outcome is achieved would largely be a tactical decision. Therefore, Ripple could pursue several paths to comply with the CLARITY Act without disrupting the price action of XRP.

Ripple releases 1 billion XRP tokens every month. On average, about 70% of these released tokens are always returned back into escrow.

Hedera’s HBAR token is trading near its lowest levels in more than a year, reflecting both broader crypto market weakness and project-specific headwinds.

After a steady decline through November and December, HBAR has slipped into a tight consolidation range, with traders debating whether the current pause marks a base for a short-term rebound or a continuation of the downtrend.

Recent price action indicates growing activity around key technical levels, despite mixed fundamental indicators.

HBAR Slides to Multi-Month Lows as Selling Pressure Builds

HBAR fell to around $0.11–$0.12 this week after failing to hold above the $0.125 support zone, a level that had acted as a floor several times earlier in the year. The drop coincided with a wider market pullback, as Bitcoin and major altcoins weakened ahead of global macro events, including Senate decisions in the U.S.

Trading data shows that volume surged sharply during attempts to reclaim resistance near $0.119–$0.120, suggesting active distribution rather than sustained accumulation.

Market structure has turned decisively bearish over recent sessions. HBAR is now trading below key moving averages, and momentum indicators such as RSI and MACD continue to point lower.

On-chain and ecosystem data have also weighed on sentiment, with Hedera’s total value locked declining significantly from earlier highs and stablecoin supply on the network shrinking over recent months.

Volume Spikes Show Key Support and Resistance Zones

Despite the broader downtrend, recent volume patterns have drawn attention from short-term traders. During one session, HBAR volume jumped more than 80% above its daily average as the price tested resistance near $0.119.

The rejection triggered another wave of selling, but late-session activity showed renewed buying interest as the price approached the $0.112–$0.113 area. This zone is now viewed as immediate support, with a deeper psychological level around $0.10 acting as the next downside reference if selling resumes.

On the upside, analysts are watching $0.119–$0.122 as a critical resistance band. A clean break above this range would be needed to shift short-term structure and open the door for a move toward prior highs near $0.13.

Analysts Split Between Oversold Bounce and Further Downside Risk

Some technical analysts argue that HBAR is approaching oversold conditions, noting weakening bearish momentum and signs of trendline breaks on lower timeframes. These signals have fueled short-term bounce scenarios targeting the mid-$0.12 to $0.14 range, provided support continues to hold.

Others remain cautious, pointing to stalled demand for recent Hedera-linked investment products and slowing ecosystem growth. From this view, failure to defend current levels could expose HBAR to a retest of $0.10, a level last seen during earlier liquidation events.

Cover image from ChatGPT, HBARUSD chart from Tradingview

Except for Ethereum’s fluctuating price action in the past few weeks following a broader market volatility, another key area is drawing notable attention in the sector. ETH’s price has been exhibiting bearish performance, and at the same time, its supply dynamics have been demonstrating a negative trend.

Net Negative Ethereum Supply Persists

Even with the current bearish state of the market, the supply dynamics of Ethereum are hinting at a quiet but powerful signal to the market. In a post on the social media platform X, Leon Waidmann, a market expert and the head of research at On-Chain Foundation, has delved into the asset’s supply dynamics, revealing a persistent negative trend.

On-chain data indicates that Ethereum supply has remained net negative despite continuous price swings, as seen on the chart shared by Waidmann. The data also shows that the metric has been exhibiting a negative trend over the last 7 days.

When Ethereum’s supply dynamics stay negative, it simply implies that more ETH are being removed from circulation compared to those being added to the market. This pattern is a result of persistent network activity, ongoing fee burning, and rising long-term holding and staking demand.

During the 7-day period, Waidmann highlighted that over 30,000 fresh ETH were added to the market. Meanwhile, Spot Ethereum Exchange-Traded Funds (ETFs) accumulated over 67,100 ETH, with about 11,700 ETH being burned via network fees. 

Overall, this brings the network’s net supply change to -49,800 ETH. Therefore, the number of ETH removed from circulation was 2.7x more than those issued in the market within the period. What this means is that the current demand for ETH continues to structurally outpace issuance.

Typically, heightened demand in the market has preceded upward swings in price. However, the price of ETH has failed to respond in this direction. Waidman noted that the price is not moving yet, because most demand is passive and not price-chasing. 

Thus, the expert declares absorption first before breakout comes later. Furthermore, large holders are still distributing into rallies, which leads to the capping of short-term moves. Another reason hinges on derivatives, as it often sets the marginal price, not spot flows. 

During negative supply dynamics, there is usually a tightening of the floor before it lifts the ceiling. Waidmann has highlighted a market structure where supply breaks first, then price follows, which is a clear pattern of how bases are formed.

ETH Network Throughput Makes Historical Highs

With recent updates, the Ethereum network has sprung back to life at a rapid rate. Joseph Young, a crypto enthusiast, has shared a fresh milestone for ETH, as the network’s execution throughput surges to an all-time high. The newly launched Fusaka Upgrade drives the network’s recent spark. 

Since the introduction of the key update, Young stated that ETH’s mainnet capacity has doubled, and rollups such as Base are already processing 10x that execution. According to Young, rollups are scaling in production while ETH is rapidly scaling, reinforcing the growing notion that ETH is the settlement layer of finance.

A crypto analyst has shared his latest forecast for the Bitcoin price, highlighting a potential downturn. His analysis breaks down technical indicators and macroeconomic data to predict key movements in the coming months and years. The report has outlined several bearish targets for Bitcoin, cautioning traders to forego excessive bullish expectations, especially as the market shows signs of entering a bearish phase. 

Bitcoin Price Set To Decline Below $55,000

A crypto analyst who calls himself ‘Mr. Wall Street’ on X has released a full technical breakdown of Bitcoin, providing both market and psychological insights while predicting a devastating decline to new lows. He highlighted that the BTC bullish momentum seen earlier this year has collapsed, signaling a shift toward a bear market. 

Key technical indicators used to understand Bitcoin’s market position and direction are signaling the start of a bear phase. The expert highlighted that the weekly 50-period Exponential Moving Average (EMA50), Moving Average Convergence Divergence (MACD) monthly cross, and Relative Strength Index (RSI) bearish divergence are now all pointing downward. 

Given this weakness, Mr. Wall Street has predicted that Bitcoin could first retest the weekly EMA50 target near $100,000 before its next decline. The analyst stated that traders are likely planning short positions in the $104,000 to $98,000 range, targeting a potential drop to $74,000 to $68,000. Looking ahead, he projects that the Bitcoin price could crash further by Q4 2026, potentially declining to levels between $54,000 and $60,000. 

Supporting his bearish forecast, the analyst has cited the decline and pressure in financial markets outside of crypto as factors contributing to the broader market downtrend. He also mentioned that the Bank of Japan’s (BOJ) planned interest rate hike adds to the current stress, along with market makers who went bankrupt during the October 10 flash crash and are waiting to liquidate billions of dollars in spot assets. 

Mr. Wall Street has dismissed common bullish arguments such as the potential restart of Quantitative Easing, explaining that minor Federal Reserve (FED) balance sheet operations do not signal a complete QE cycle. He stressed that macro bullishness does not justify ignoring short and mid-term risks. Moreover, he warned that those who ignore the reality of a bear case would wish they had shorted the retested $100,000-$125,000 range a year from now. 

Looking beyond the projected bear cycle, Mr. Wall Street believes that Bitcoin could eventually rebound to around $89,000 in 2027. Following this, he expects the cryptocurrency to accelerate toward $110,000 and ultimately $160,000.

Macroeconomic Factors Contribute To Market Decline

Mr. Wall Street also links his bearish Bitcoin forecast to the present weakness in broader macroeconomic conditions. He highlighted that BTC’s struggles are deeply connected to the decisions made by central banks, particularly the FED. 

According to the analyst, the US economy began showing signs of deterioration at the start of 2025. He claimed that key indicators, such as worsening job data and misleading inflation figures, were allegedly ignored. Furthermore, he highlighted that the FED’s inaction and delayed rate cuts prevented necessary economic easing, leaving markets and cryptocurrencies like Bitcoin vulnerable to correction.

The Federal Deposit Insurance Corporation (FDIC) has announced a new framework that outlines how banks can apply to issue payment stablecoins through subsidiaries as part of the implementation of the country’s stablecoin bill, the GENIUS Act. 

FDIC’s First Move On GENIUS Act

In a statement, Acting Chair Travis Hill emphasized that the proposed process is tailored to allow the FDIC to thoroughly evaluate the safety and soundness of applications from banks seeking to enter the stablecoin market. 

According to a summary from FDIC staff, banks wishing to issue payment stablecoins will need to submit detailed applications outlining various aspects of their proposed activities.

Each application must include a description of the intended payment stablecoin, along with a comprehensive overview of the subsidiary’s activities. 

Additionally, institutions must provide financial information, details regarding the ownership and control structure of the subsidiary, and pertinent policies related to customer agreements, including provisions for custody. Applicants will need to submit an engagement letter from a registered public accounting firm.

30-Day Review Period For Stablecoin Applications

The FDIC aims to promptly review submissions, notifying stablecoin applicants within 30 days whether their application has been deemed substantially complete. Following that, the agency must make a decision on approval within 120 days from the time the application reaches this status.

“This proposed rule is the FDIC’s first action to implement the GENIUS Act,” stated Acting Chairman Travis Hill. He added that in the coming months, the agency plans to introduce proposals to establish the required management standards for subsidiaries of FDIC-supervised institutions that are approved to issue payment stablecoins. 

The FDIC is also committed to providing comprehensive regulatory clarity regarding activities associated with digital assets and tokenized deposits. The plan will undergo a public consultation period before it can be finalized.

Featured image from DALL-E, chart from TradingView.com 

Following the sudden pullback observed across the cryptocurrency market, the price of XRP has fallen sharply, causing it to revisit the $1.8 threshold. With XRP’s price facing heightened bearish pressure, traders appear to be stepping back, raising questions about the current price action.

Leverage Unwinds Across XRP Markets

XRP’s waning price action is starting to trigger a crucial shift in investors’ action and sentiment toward the leading altcoin. A widely monitored derivatives metric outlined by Arab Chain, an author at CryptoQuant, is still trending lower, suggesting that the market risk balance for the altcoin is subtly recalibrating.

Specifically, the Estimated Leverage Ratio (ELR) for XRP, a metric that monitors the amount of borrowed capital traders use in relation to exchange balances, is showing a persistent downtrend. Typically, a continued decline in the measure is a clear sign of reduced risk in the derivatives market.

After examining the XRP’s ELR on Binance, the world’s largest cryptocurrency exchange, Arab Chain found a persistent decrease to roughly 0.18, reflecting a clear sign of caution in the XRP market on Binance. It is worth noting that this position is one of the lowest levels recorded during the ongoing period, as the price of the token trades close to the $2.00 mark.

Arab Chain highlighted that the drastic decline in the ELR suggests that investors’ reliance on decrease is decreasing, meaning that most of the funded positions have been closed or limited. Structurally, a decline in leverage is seen as an indication of reduced market fragility.

When this occurs, it lowers the likelihood of forced liquidations, which are caused by sudden price movements. As the market tends to lower risk and reset open positions, this behavior usually happens following times of increased volatility or price corrections. 

Interestingly, the drop is occurring along with a downward trend in XRP’s price compared to its previous levels above $3.00. This synchronicity is a sign that the accumulation of highly leveraged positions does not fuel the price decline. Rather, it is riven by the unwinding of such positions.

In the past, environments like these typically marked transitional phases. During this period, the market transitions from active speculation to a calmer phase concentrated on rebalancing. 

A Stabilization To Kickstart A Rally

Once the metric starts to stabilize again at a relatively low level, Arab Chain noted that it could lay the foundation for more substantial XRP price movements in the future. However, this is expected to happen once liquidity slowly returns to the derivatives market in the absence of excessive leverage.

In other words, low leverage would make any future rally less likely to see a dramatic reversal. While the ELR sits at 0.18, the market is still reconstructing itself and creating a more balanced base prior to calculating its next major direction. Whether it resumes its upside direction or enters a prolonged consolidation phase depends heavily on the metric’s movement.

Crypto pundit Chain Cartel has raised several key points following SWIFT’s latest comment on its move to adopt blockchain technology. The pundit claimed that Ripple’s XRPL network best suits what SWIFT is trying to achieve and suggested that the two firms collaborate. 

Pundit Points To Ripple’s XRPL After SWIFT’s Announcement

In an X post, Chain Cartel stated that SWIFT admitted they are building Ripple’s XRPL network, but did not explicitly say so in their announcement. The pundit was referring to an X post from SWIFT highlighting their earlier announcement to add a blockchain-based ledger to their infrastructure.

The pundit explained that SWIFT’s language in the X post suggests that they want to build something like Ripple’s XRPL. He declared that it is not Bitcoin, Ethereum, or any generic blockchain experiment but precisely what Ripple has been building for a decade. Chain Cartel noted that Ripple’s model has always been a neutral settlement layer, real-time atomic finality, shared ledger visibility for institutions, interoperability with legacy rails, and liquidity-first design. 

Chain Cartel then alluded to SWIFT’s statement about its plans to build a blockchain-based ledger to be included in its payment infrastructure and provide a single source of truth, enabling instant, 24/7 cross-border payments. He declared that this is Ripple’s blueprints with the XRPL, as the crypto firm uses the network for its payment services. 

In line with this, the pundit remarked that SWIFT doesn’t replace rails, but instead coordinates them, and that Ripple doesn’t replace banks, but instead connects them. He added that SWIFT is acknowledging that the future payment stack requires a ledger layer, not just messaging, and that the only model already battle-tested at scale is Ripple’s XRPL.

However, it is worth mentioning that SWIFT doesn’t plan to integrate Ripple’s Ledger. Instead, it is building this blockchain-based ledger in partnership with Consensys and Chainlink. As such, although SWIFT may plan to build a network similar to Ripple’s XRPL, it intends to do so without assistance from the crypto firm. 

Ripple Looking To Expand Its Payment Service

Ripple is looking to expand its payment service, as it recently announced plans to begin testing its RLUSD stablecoin on Ethereum layer-2 networks Base, Ink, Optimism, and Unichain. The move comes just days after the OCC granted Ripple a conditional approval to become a bank, which is also a major boost for the firm’s payment service. 

Ripple plans to expand its RLUSD stablecoin beyond the Ethereum and XRPL networks to these layer-2 networks through its partnership with Wormhole. The firm noted that the future of crypto is multichain, which is why it is adopting this strategy. This move gives Ripple’s clients greater options when using the RLUSD stablecoin, and it could also attract new users to the stablecoin, which is currently one of the fastest-growing stablecoins. 

As volatility weighs heavily on the market, fresh insights are shedding light on who is really driving activity in the XRP ecosystem. A crypto analyst has shared new observations, revealing that a specific demographic continues to dominate XRP trading activity. The analyst explained that this trend has held steady despite the cryptocurrency experiencing notable downside momentum, with prices sliding to new lows amid broader market uncertainty.

Analyst Says Whales Are Dominating XRP 

A recent analysis report by market expert Xaif Crypto suggests that whales remain the dominant demographic influencing price action. He shared a chart on X highlighting Spot Average Order Size on the XRP Ledger, showing normal, retail, and big and small whale orders. 

The analyst noted that the recent spike in XRP trading has been driven primarily by whales. According to his report, this trend has persisted despite the altcoin entering a period of short-term price weakness. The cryptocurrency has recently declined toward its lowest price levels this year, raising concerns among smaller investors. 

Xaif Crypto explained that this type of behavior from whales is often seen during market bottoming phases. He emphasized that large holders typically increase accumulation when prices are depressed and avoid aggressive buying once a strong uptrend is already underway. The analyst also noted that this strategy suggests whales may be positioning themselves ahead of a potential recovery in XRP’s price.

The continued presence of whales has also helped stabilize liquidity to some degree during the ongoing decline. While retail traders may hesitate amid falling prices, whale activity tends to prevent sharp breakdowns by absorbing significant selling pressure. 

Buying Sentiment Surges Amid Price Weakness

A CryptoQuant analyst who also highlighted that XRP’s trading activity continues to be dominated by whales has observed a notable change in the cryptocurrency’s Spot Taker CVD. According to the analyst’s report, XRP’s Spot Taker CVD has entered a taker-buy dominant trend. This shift suggests that aggressive buyers are now outweighing sellers, often interpreted as a sign of strengthening market sentiment and potential upside for price action.

These market changes follow XRP’s sharp drop, which has pushed its price below $2 for the first time in months. The cryptocurrency has struggled to break through resistance zones needed to establish new highs, keeping overall sentiment cautious among traders. 

At present, XRP is trading around $1.82, down more than 6% over the past 24 hours, according to CoinMarketCap. Over the past week, the cryptocurrency’s price has fallen by nearly 9%, adding to the broader bearish outlook. XRP’s year-to-date performance is also negative, with the cryptocurrency losing about 22% of its value so far. 

Despite these severe declines, buying activity has increased significantly. Additionally, daily trading volume has surged by more than 97%, suggesting renewed interest as whales continue to shape the market’s direction.