Industry Update
FOMC More Dovish Than Expected; Bitcoin Pulls Back After Hitting Resistance
Summary
-
Macro Environment: The Federal Reserve cut rates by 25 bps as expected. Overall messaging was less hawkish than markets anticipated—while the vote revealed growing internal divergence and the statement suggested a higher bar for future rate cuts, the Fed simultaneously announced the launch of RMP bond purchases. Powell's press conference tone was also more dovish than expected, leading risk assets to rise and markets to digest this FOMC positively. All three major U.S. equity indices closed higher.
-
Crypto Market: During U.S. trading hours, crypto assets followed risk markets upward. However, Bitcoin quickly retreated after touching the 94.5k resistance level and continued to fall after U.S. markets closed, dragging the broader market down. Liquidity in the altcoin segment improved modestly, with slight increases in market cap and trading volume share. Overall sentiment remained in the fear zone, showing limited uplift from the rate cut.
-
Project Developments
-
Hot tokens: WET, NIGHT, LUNA
-
WET: Completed public sale and listed on Coinbase
-
zk/privacy sector remained strong, with NIGHT, XMR, FHE, and LRC rising
-
Do Kwon to face trial in New York on Thursday; related tokens LUNA and LUNC moved higher
-
Major Asset Movements
Crypto Fear & Greed Index: 29 (26 twenty-four hours ago), level: Fear
Today’s Key Events to Watch
-
U.S. initial jobless claims for the week ending Dec 6
-
Sentencing announcement for Terraform Labs founder Do Kwon, who may face up to 25 years in prison
Macroeconomics
-
The Federal Reserve cut rates by 25 bps as expected; the dot plot indicates one 25 bp rate cut in each of 2026 and 2027
-
The Fed will conduct USD 40 billion in net asset purchases this month
-
Powell: inflation remains elevated; the Fed will make decisions meeting by meeting; monetary policy has no preset path
-
Trump criticized the rate cut as insufficient
-
Hassett: stronger data could justify a 50 bp rate cut
Policy Direction
-
CFTC Chair confirmed Bitcoin can be used as collateral in derivatives markets
-
Japan plans to incorporate crypto assets into its securities regulatory framework
-
Putin: development of new payment tools is a natural evolution, and no one can ban Bitcoin
-
U.S. SEC Chair: the agency will “take action quickly” on crypto priorities in the new year
-
France plans to relax retail crypto trading rules, following the UK’s direction and representing a shift within the EU
Industry Highlights
-
State Street and Galaxy to launch a tokenized liquidity fund on Solana next year
-
Bitmine purchased an additional 33,504 ETH from FalconX, worth USD 112 million
-
Gemini received CFTC approval to launch a prediction market and plans to expand crypto derivatives
-
Payments giant Stripe acquired the Valora wallet team to expand its stablecoin services
-
American Bitcoin increased holdings by 416 BTC, bringing total holdings to 4,783 BTC
-
Tidal Trust plans to launch a night-trading Bitcoin ETF
Industry Highlights Extended Analysis
State Street and Galaxy to Launch a Tokenized Liquidity Fund on Solana Next Year
State Street (SSGA) and Galaxy Asset Management are planning to launch a tokenized liquidity fund called SWEEP (State Street Galaxy Onchain Liquidity Sweep Fund) in early 2026. This fund aims to bring Traditional Finance (TradFi) cash management products onto the blockchain, initially launching on Solana with potential expansion to Stellar and Ethereum later. The fund will accept subscriptions and redemptions using the PayPal stablecoin PYUSD, enabling 24/7 liquidity for institutional investors. This marks a continued push by major institutions into Real-World Asset (RWA) tokenization, seeking to improve the efficiency and accessibility of traditional assets.
Bitmine Purchased an Additional 33,504 ETH from FalconX, Worth USD 112 Million
Bitmine Immersion Technologies is executing an aggressive Ethereum (ETH) asset reserve strategy. With this purchase, the company further solidifies its position as one of the world's largest ETH treasuries, with a long-term goal of accumulating up to 5% of the total Ethereum supply. This strategy aligns with its aim to position itself as a key player in the Ethereum ecosystem, anticipating long-term value growth driven by technical improvements like the "Fusaka" upgrade and favorable macroeconomic conditions such as expected interest rate cuts.
Gemini Received CFTC Approval to Launch a Prediction Market and Plans to Expand Crypto Derivatives
Gemini's subsidiary, Gemini Titan, has been granted a Designated Contract Market (DCM) license by the U.S. Commodity Futures Trading Commission (CFTC). This approval, which took five years, allows it to offer a prediction market (named Titan) to U.S. clients, initially in the form of binary event contracts (where one trades on a "yes" or "no" outcome for specific events). The DCM license provides Gemini with a significant regulatory pathway, with future plans to expand its derivatives offerings to include crypto futures, options, and perpetual contracts, further deepening its footprint in the regulated U.S. financial landscape.
Payments Giant Stripe Acquired the Valora Wallet Team to Expand Its Stablecoin Services
Payments giant Stripe has acquired the team behind Valora, a mobile-first, self-custody crypto wallet. This move is a strategic step for Stripe to strengthen its stablecoin and crypto payment services. The Valora team's expertise in building user-friendly wallets and peer-to-peer (P2P) payment systems will help Stripe accelerate the development of its crypto infrastructure. While the Valora app itself is being returned to cLabs, the core development team for the Celo blockchain, Stripe has absorbed its talent and experience to focus on enhancing cross-border payments and utilizing the efficiency of stablecoins to broaden global financial access.
American Bitcoin Increased Holdings by 416 BTC, Bringing Total Holdings to 4,783 BTC
American Bitcoin (ABTC) is a publicly traded company (Nasdaq: ABTC) that combines Bitcoin mining with a treasury management strategy. The company continually increases its Bitcoin holdings through both self-mining and opportunistic market purchases, aiming to maximize its per-share Bitcoin holding to provide investors with institutional-grade Bitcoin exposure. As a majority-owned subsidiary of Hut 8 Mining, its strategy is to leverage the cost advantage of its mining infrastructure and treat its Bitcoin reserve as a long-term investment in a digital asset.
Tidal Trust Plans to Launch a Night-Trading Bitcoin ETF
Tidal Trust II has filed plans to launch the Nicholas Bitcoin and Treasuries AfterDark ETF. This ETF is designed to capture the significant price movements and rallies that often occur outside of regular U.S. market trading hours. The fund will not hold Bitcoin directly but will instead hold short-term U.S. Treasury securities during the day and use derivatives instruments like futures and options to match Bitcoin’s overnight performance during the non-trading session. This reflects ETF issuers seeking innovative structures to capitalize on the 24/7 nature of the cryptocurrency market and offer a differentiated Bitcoin-related product to investors.