Cryptocurrency Market Consolidation Continues Amidst Fear and Uncertainty
The cryptocurrency market has witnessed another week of consolidation, following last week’s long-awaited rally. Despite Bitcoin (BTC) remaining above the key psychological level of $90,000, investor sentiment continues to be dominated by “fear,” with a marginal improvement from 20 to 25 within the week, according to CoinMarketCap’s Fear & Greed Index.
As the market awaits the key interest rate decision during the upcoming Federal Reserve meeting on Wednesday, investors are eagerly anticipating further guidance on monetary policy through 2026. Markets are pricing in an 87 percent chance of a 25 basis point rate cut, up from 62 percent a month ago, according to CME Group’s FedWatch tool.
Ethereum Treasury Trading Plunges 80% as Whales Dominate Buying
Ethereum treasury trading appears to be weakening, with monthly acquisitions continuing to decline since the August high. According to Bitwise, an asset management firm, investments in Ethereum digital asset treasuries (DATs) fell 81% in the last three months, from 1.97 million ETH in August to 370,000 ETH in November.
Despite the slowdown, some companies with stronger financial backgrounds have continued to build up their holdings of the world’s second-largest cryptocurrency or raise funds for future purchases. BitMine Immersion Technologies, the largest corporate Ether holder, accumulated around 679,000 Ether worth $2.13 billion last month, reaching 62% of its goal of accumulating 5% of ETH supply, according to data from Strategicethreserve.
Citadel Calls for Stricter DeFi Regulations
Market maker Citadel Securities has recommended that the U.S. Securities and Exchange Commission tighten decentralized finance regulations regarding tokenized stocks, sparking backlash from crypto users. Citadel Securities told the SEC in a letter that DeFi developers, smart contract coders, and self-custody wallet providers should not be granted a “broad exemption” for offering trading in tokenized U.S. stocks.
Citadel’s letter, written in response to the SEC’s request for feedback on how it should approach regulating tokenized stocks, has drawn significant backlash from the crypto community and organizations committed to innovation in the blockchain space.
Arthur Hayes Warns of Monad’s Potential Crash
Crypto veteran Arthur Hayes has issued a warning about Monad, saying the recently launched Layer 1 blockchain could collapse by up to 99% and become another failed experiment driven by venture capital hype rather than real adoption. Speaking on Altcoin Daily, the former BitMEX boss described the project as “another high-FDV, low-float VC coin,” arguing that its token structure alone puts retail traders at risk.
Crypto Lending Market Reaches $25 Billion
The crypto lending market has become more transparent than ever, led by companies like Tether, Nexo, and Galaxy, and has just reached nearly $25 billion in total outstanding loans in the third quarter. According to Galaxy Research, the size of the crypto lending market has increased by more than 200% since the beginning of 2024.
Portal to Bitcoin Raises $25M and Launches Atomic OTC Desk
Native Bitcoin interoperability protocol Portal to Bitcoin has raised $25 million in funding as part of the launch of what it calls an atomic over-the-counter (OTC) trading desk. The company has raised $25 million in a round led by digital asset lender JTSA Global, according to a Thursday announcement shared with Cointelegraph.
DeFi Market Overview
Most of the top 100 cryptocurrencies by market capitalization ended the week in the red, according to data from Cointelegraph Markets Pro and TradingView. The Canton (CC) token fell 18%, marking the week’s largest decline in the top 100, followed by the Starknet (STRK) token, which fell 16% on the weekly chart.
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