Ether’s daily chart is showing signs of a developing double bottom pattern, a formation that often signals potential trend reversal.
The structure has taken shape across the fourth quarter of 2025, marked by repeated defenses of a key demand zone.
If confirmed, the pattern points toward a possible move to the $3,900 area, roughly 20% above current levels.
Despite this constructive setup, ETH faces an immediate technical hurdle.
200-day EMA remains a critical barrier
The 200-period exponential moving average has capped price advances since the broader trend turned bearish in November.
Ether has failed twice to reclaim this level, with each rejection followed by renewed downside pressure.
As price tests the moving average again, the market is approaching a decisive inflection point.
A sustained daily close above the 200-EMA would suggest acceptance above long-term trend resistance.
From a structural perspective, a strong close above $3,300 would also mark a bullish break of structure on the daily chart.
Volume data shows buyer conviction
Beyond price levels, volume-based indicators are offering insight into the nature of ETH’s recent rebound.
Cumulative Volume Delta tracks the net difference between aggressive buy and sell orders over time.
Rising CVD typically reflects taker-buy dominance, where buyers are willing to pay higher prices rather than wait passively.
Data shows that both spot and futures taker CVDs have trended higher over the past three weeks.
This alignment across markets often points to genuine demand rather than short-covering rallies.
Whale behavior diverges from retail activity
While aggregate volume data looks supportive, wallet-level analysis reveals a split beneath the surface.
Whale wallets holding between $100,000 and $10 million recorded a negative $40 million cumulative delta this week.
That suggests larger players have been net sellers during the recent recovery phase.
In contrast, retail wallets and mid-sized traders posted modest positive deltas over the past six days.
These figures indicate that smaller participants are driving much of the current upside momentum.
A defining moment for ETH
The divergence raises questions about sustainability if larger holders remain on the sidelines.
A clean break above the 200-EMA could entice whales back into the market.
Failure to clear resistance may leave ETH vulnerable to another stall or pullback.
For now, the double bottom thesis remains intact but unconfirmed.
The next daily close could prove decisive for Ether’s near-term trajectory.
Two major cryptocurrency exchanges have jointly contributed more than $21 million to a political action committee aligned with US President Donald Trump, underlining the growing political influence of the digital asset industry.
The donations were disclosed in a filing submitted on Friday to the Federal Election Commission, detailing fresh inflows into the MAGA Inc. Super PAC.
According to the filing, Gemini Trust Company provided 1,500,000 liquidated USDC as part of its contribution to the group.
The document also revealed two separate $10 million donations from Foris Dax, the parent company of cryptocurrency exchange Crypto.com.
Crypto.com has expanded its ties with Trump’s media business since 2025, a relationship linked to the company’s evolving digital asset treasury strategy.
Together, the contributions significantly boosted the PAC’s already substantial financial reserves.
The filing shows the Super PAC now holds approximately $294 million in total funds.
Additional donations from the wider financial sector were also reported in the same disclosure.
An executive at payment processing firm Shift4 contributed $1 million to the PAC.
JP Morgan Chase Bank, N.A. was listed as having provided more than $4 million in contributions.
Midterms take centre stage
While Trump is not running for reelection in 2026, the funds raised by the Super PAC can still be used to support candidates with similar political views.
Trump’s second term is scheduled to conclude in January 2029, leaving the upcoming midterm elections as a key political battleground.
In 2026, all 435 seats in the US House of Representatives will be contested.
A total of 33 Senate seats will also be up for election.
Democrats are aiming to reclaim control of one or both chambers from Republicans.
The outcome could have far-reaching consequences for financial regulation and cryptocurrency policy in the United States.
Crypto-focused races draw attention
Several races viewed as important for the digital asset industry are already attracting attention.
Republican candidate John Deaton, known for his involvement in XRP-related legal advocacy, is seeking the Massachusetts Senate seat currently held by Ed Markey.
Wyoming Senator Cynthia Lummis, one of the Senate’s most vocal supporters of pro-crypto legislation, announced in December that she will not seek reelection in 2026.
Her departure leaves an open seat in a state closely associated with crypto-friendly regulatory thinking.
Industry figures see these contests as pivotal to the future legislative environment for digital assets.
Lessons from the 2024 election cycle
The cryptocurrency sector played a visible and increasingly coordinated role during the 2024 US elections.
Crypto companies and senior executives spent heavily on advertising and political messaging.
Media campaigns funded by crypto-backed PACs were credited with influencing several closely fought races.
One frequently cited example was Ohio’s Senate contest, which reportedly saw around $40 million in related spending.
Republicans ultimately secured control of the Senate following that election cycle.
The scale of spending marked a turning point in crypto’s political engagement.
Spending momentum continues
Crypto-backed political groups have shown little sign of reducing their activity ahead of the midterms.
In 2024, a spokesperson for the Fairshake PAC said the group was “keeping [its] foot on the gas” as it prepared for future races.
Fairshake and its affiliates spent millions during 2025.
Those funds were directed toward congressional races in Virginia’s 11th district and multiple Florida districts.
With large financial reserves already in place, crypto-linked PACs appear positioned to remain influential through the 2026 elections.
PricewaterhouseCoopers has decided to expand its cryptocurrency business, citing a clearer regulatory environment in the United States.
Chief executive Paul Griggs said changes in regulatory leadership and progress on stablecoin legislation played a central role in the shift.
New leadership at agencies such as the U.S. Securities and Exchange Commission, alongside proposed laws like the GENIUS Act, were key drivers behind the decision.
“The GENIUS Act and the regulatory rulemaking around stablecoin, I expect, will create more conviction around leaning into that product and that asset class,” Griggs said.
He added that “the tokenization of things will certainly continue to evolve as well. PwC has to be in that ecosystem.”
Big Four firm deepens digital asset involvement
PwC is one of the “Big Four” global accounting and professional services firms, reporting revenues of $56.9 billion as of October.
Like many large corporations, the firm has moved further into crypto after years of cautious engagement across the industry.
PwC already lists a wide range of crypto-related services, including accounting, cybersecurity, wallet management, and regulatory advisory support.
The firm also works with exchanges, traditional financial institutions entering crypto, and public-sector clients such as governments and central banks.
Investment in people and capabilities
Griggs said the expansion reflects a deliberate effort to build internal capacity rather than a sudden strategic pivot.
“We are never going to lean into a business that we haven’t equipped ourselves to deliver,” he said.
“Over the last 10 to 12 months, as we’ve taken on more opportunities in that digital assets arena, we’ve bolstered our resource pool inside and outside,” he added.
According to Griggs, demand is rising across both audit and consulting services tied to crypto and blockchain technologies.
“Whether we are doing work in the audit space or doing work in the consulting arena — we do all the above in crypto — we see more and more opportunities coming our way,” he said.
Industry-wide shift among major firms
PwC’s move aligns it with the rest of the Big Four, all of which now offer crypto-related services.
Deloitte provides blockchain strategy and consulting and maintains partnerships with companies involved in smart contracts and blockchain analytics.
Ernst & Young has developed crypto strategy, tax, and advisory offerings aimed at institutional clients.
KPMG has expanded into crypto audits, cybersecurity, and advisory services as demand from enterprises and regulators continues to grow.
Economic forecasts are often based on quarterly reports, Federal Reserve statements or market rate dynamics. However, some of the most reliable signals of where the U.S. economy is heading appear in a different form entirely. To understand its trends and undercurrents, you need to see where the government’s attention is directed: which sectors dominate high-level agendas and which entrepreneurial models receive formal recognition from government officials.
When you examine who gets scheduled time with policymakers or which achievements earn congressional commendation, you move past speculations about the future, because the present-day alignment of policy attention, capital deployment and operational focus is precisely what defines where the economy is heading.
On December 4th, a structured business gathering at the U.S. Capitol brought together congressional leadership and entrepreneurs across energy infrastructure, commercial real estate, and technology sectors. The composition of participants, the topics prioritized for discussion, and the business models selected for presentation offer a revealing snapshot of America’s emerging economic priorities for 2026 and beyond.
When Access Indicates Priority
The event encompassed discussions focused on energy infrastructure, commercial real estate development, and technology scaling, followed by a closed-door dinner at the Capitol Hill Club where more detailed conversations about specific projects and partnership models could occur. The agenda explicitly addressed energy and infrastructure projects, partnerships with government structures, data center development, and the intersection of residential real estate markets with broader infrastructure development.
Participants from the congressional side included Congressman Brad Sherman (D-CA), a senior member of both the House Foreign Affairs and Financial Services Committees who has served since 1997, along with Bob Holste, Chief of Staff to Rep. Kevin Kiley (R-CA). The business contingent represented established companies across energy, construction, development, and technology sectors—notably not early-stage startups but operational businesses with demonstrated revenue and market presence.
“Bringing leaders and businesses together to personally engage with members of Congress, hear their perspectives, and discuss important issues strengthens the country by promoting transparent dialogue, informed decision-making, and civic engagement, while providing businesses with a meaningful voice in shaping sustainable economic growth,” notes Otuonye Devora. “These gatherings foster trust, encourage innovation, and reflect real-world developments.”
What gets scheduled on Capitol Hill reveals what policymakers consider important enough to warrant direct attention. The participation of senior committee members with jurisdiction over financial services and foreign affairs, alongside representation from newer congressional leadership focused on technology and infrastructure, indicates cross-party recognition of certain economic imperatives. Complex challenges, such as energy grid modernization, infrastructure scaling for technological demands, integration of international expertise, increasingly require what participants termed “co-creation” between business and government.
The venue choice reinforces this interpretation: the Capitol Hill Club, an exclusive Republican gathering space with a waitlist exceeding four years, grants access based on relevance and relationship. Holding substantive business discussions there indicates these conversations are considered central to near-term policy formation.
Energy Infrastructure Takes Center Stage
One of the key topics of the event was the intersection of energy infrastructure and technology scaling. Substantial discussion time was dedicated to energy and infrastructure projects, commercial real estate tied to energy systems and high-capacity facilities such as data centers. The attention directed towards this topic represents immediate requirements driven by AI infrastructure demands, grid modernization needs, and energy security considerations.
The commercial real estate discussion centered on properties as energy infrastructure assets rather than traditional investment vehicles, reflecting the reality that AI deployment and data center expansion require fundamental rethinking of how buildings integrate with power systems. This focus addresses a critical bottleneck: the U.S. grid’s capacity constraints are increasingly limiting technology infrastructure buildout, making energy-optimized real estate a strategic asset class rather than a conventional one.
The emphasis on government partnership models acknowledges that major infrastructure development has moved beyond what purely private capital can accomplish efficiently, particularly when projects require regulatory coordination, grid access, and public utility integration.
The agenda’s attention to specific expertise requirements, such as electrical engineering, energy systems, and specialized construction, signals a market transition from conceptual planning to active deployment. This creates immediate opportunities for businesses with implementation capabilities rather than innovative ideas alone. The integration of international expertise reflects pragmatic recognition that U.S. infrastructure ambitions require global talent pools. These priority areas collectively indicate an economic environment where execution capacity, technical specialization, and cross-sector coordination determine competitive advantage.
What Business Models Presented in Congress
The key trends were highlighted not only through the meeting agenda, but also through selection of which business models were invited for congressional presentation. The invitation to present before congressional leadership can be viewed as policy signals, representing government endorsement of specific business adoption and models. The recognition criteria reveal what policymakers consider valuable: first and foremost, a demonstrated contribution to sustainable growth and economic development infrastructure.
For instance, Andrii Kovalchuk, an American entrepreneur of Ukrainian origin, presented his comprehensive business optimization methodology that has been adopted by U.S. business associations including Revenew and FORCE Club. Among other participants was Alpamys Askarov, founder of Alpamys Inc. and co-owner of TowerTrust Solutions LLC, who showcased his work leading 5G telecommunications deployment across 31 U.S. states, having completed over 2,000 infrastructure projects for major operators. Oleksandr Vasyliev presented his achievements in logistics technology and digital transformation, with innovations that have empowered small and medium enterprises and strengthened supply chain infrastructure.
“This honor highlights innovative business models that will unlock productivity in American firms,” Kovalchuk noted. “I believe it motivates the rapid spread of strategies that build economic stability and empower businesses to thrive in competitive markets.”
The recognition pattern emphasizes systematic approaches to operational excellence and infrastructure development rather than individual company valuations, signaling preference for scalable frameworks that strengthen broader economic ecosystems.
The selection illustrates the emphasis on systematized, replicable methodologies over individual company success, infrastructure-building over singular achievements. The fact that the methodology focuses on small and medium enterprise advancement suggests policy attention to scalable models that strengthen the broader entrepreneurial landscape rather than create isolated startup success stories.
The same pattern holds across all invited participants: they represent established operators across energy, technology, and commercial real estate with proven implementation records, highlighting the fact that while innovative ideas are valuable, implementation, scalability and infrastructure development are what matters on a broader scale.
What This Means for Market Participants
The December Capitol Hill gathering points to several converging trends that will likely define the 2025-2026 economic landscape. The priority shift favors mature innovation ready for immediate deployment over experimental disruption, with the preference for scalable solutions that address infrastructure challenges rather than conceptual breakthroughs seeking market fit. The emphasis on systematized methodologies suggests an economic environment where replicable excellence and knowledge infrastructure matter as much as proprietary advantage. Collaborative development models are becoming the default approach for strategic sectors, reflecting recognition that major infrastructure buildout requires coordinated public-private action rather than purely market-driven dynamics.
For entrepreneurs and economic observers, events like this Washington gathering offer early-warning indicators of where capital deployment, regulatory support, and operational focus are aligning. The conversation has moved from exploring possibilities to executing at scale, creating immediate opportunities for businesses with implementation capabilities in energy infrastructure, specialized construction, and technology integration. As the next year unfolds, expect acceleration in projects where energy systems and real estate converge, increased structured partnership between business and government in capital-intensive sectors, and growing recognition of international expertise as essential to domestic infrastructure ambitions.
Author: Thomas Goldstein
The Digital Asset Market Clarity Act, also known as the CLARITY Act, is advancing according to schedule, despite growing impatience from the cryptocurrency sector.
John D’Agostino, Coinbase Institutional’s head of strategy, spoke on CNBC on Friday, acknowledging the delays.
“I completely understand why this is taking longer,” D’Agostino said.
He emphasized that the legislation is foundational for the development of crypto and other real asset classes, making a deliberate pace reasonable.
“It’s the kind of bill that is quite frankly more foundational for the growth of crypto or any real asset class,” he said.
D’Agostino compared the CLARITY Act to the Genius Act, the stablecoin law passed in July.
While the Genius Act was transformative, he noted it was structurally simpler than comprehensive market structure legislation.
“Massive flight of talent” could accelerate passage
The remarks follow White House AI and crypto czar David Sacks’ comment that the CLARITY Act might pass in January.
”We are closer than ever to passing the landmark crypto market structure legislation that President Trump has called for. We look forward to finishing the job in January,” Sacks said on Dec. 19.
D’Agostino expressed confidence in eventual approval, pointing to global momentum for crypto regulation, including Europe’s MiCA framework and regulatory developments in the UAE.
He highlighted the ongoing “massive flight of talent” from the US, which may pressure lawmakers to act faster.
“Part of the rush to get Genius done was to stem that bleeding,” he said.
D’Agostino added that the return of Congress in session could bring renewed urgency.
“I think once we get back in session and everyone can take time to absorb what’s happening, that same burning platform will appear where we really don’t want the US to fall as behind as it’s been on transformational technologies like artificial intelligence and blockchain,” he said.
Delays in the CLARITY Act have already affected the market.
CoinShares reported $952 million in outflows from crypto investment products in the week ending Dec. 19, citing prolonged regulatory uncertainty as a contributing factor.
Veteran trader Peter Brandt suggested the Act’s passage may not dramatically affect Bitcoin’s price.
“Is it a world-shaking macro development? Nope. Needed for sure, but not something that should redefine value,” Brandt told Cointelegraph.
The CLARITY Act represents a pivotal step in US crypto legislation, balancing industry expectations with the careful design required for long-term growth.
BitMine Immersion Technologies has expanded its Ethereum staking position with a fresh deposit of 82,560 Ether, valued at roughly $259 million.
Onchain data shows the Ether was transferred in multiple large transactions to Ethereum’s BatchDeposit contract within a short time window.
The deposits further strengthen BitMine’s position as one of the largest institutional stakers on the network.
Following the latest addition, BitMine’s total staked Ether has climbed to 544,064 ETH.
At current market prices, the staked position is worth approximately $1.62 billion, according to onchain analyst Lookonchain.
Growing institutional appetite for Ethereum yield
BitMine first began staking Ether on Dec. 26, when it transferred nearly $219 million worth of ETH to staking-related contracts.
The company has since accelerated its participation as institutional demand for onchain yield continues to build.
In November, BitMine disclosed plans to formally launch its Ethereum staking program in the first quarter of 2026.
The initiative will operate through the company’s internal Made-in-America Validator Network, or MAVAN.
Management said MAVAN is designed to meet institutional standards for performance, redundancy, and operational security.
Pilot phase sets foundation for scaling
As part of the rollout, BitMine selected three institutional staking providers for an initial pilot program.
A limited amount of Ether was deployed to evaluate validator uptime, infrastructure reliability, and risk controls.
The company said insights from the pilot will inform decisions around broader deployment.
BitMine indicated that a significant expansion could follow if benchmarks are met.
Validator entry queue approaches one million ETH
BitMine’s aggressive staking activity has contributed to growing congestion in Ethereum’s validator entry queue.
Current network data shows roughly 977,000 ETH waiting to be activated as validators.
At current levels, the estimated wait time for new validators is close to 17 days.
By contrast, exit demand remains relatively subdued.
Only about 113,000 ETH is currently queued for withdrawal from staking.
Ethereum network statistics show more than 35.5 million ETH is now staked.
That figure represents roughly 29% of Ethereum’s total circulating supply.
Annualized staking yields currently stand near 2.54%.
Market commentary turns bullish
Abdul, head of DeFi at layer-one blockchain Monad, commented on the shifting balance between entry and exit queues.
He said the last time entry demand overtook exits in June, Ether “doubled in price shortly after.”
Abdul added that “2026 going to be a movie,” suggesting optimism around future price action.
Meanwhile, BitMine chairman Tom Lee has urged shareholders to approve a sharp increase in authorized shares.
Lee argues the move is necessary if rising Ether prices significantly boost BitMine’s valuation.
Prediction market traders on Polymarket are expressing notable caution about Bitcoin’s near-term price potential, with relatively low odds assigned to extreme upside scenarios despite widespread bullish forecasts for next year.
Data from the Polymarket contract asking “what price will Bitcoin hit before 2027?” shows traders leaning toward modest gains rather than a rapid surge to new highs.
According to the platform, Bitcoin has a 45% probability of reaching $120,000, a level that remains below its previous all-time high and reflects restrained expectations.
Confidence declines further as price targets rise, with $130,000 carrying just a 35% probability and $140,000 priced at 28%.
Only 21% of traders believe Bitcoin will climb as high as $150,000 within the next two years, underlining the market’s current hesitancy.
The most widely supported outcome remains Bitcoin reaching $100,000, which holds an 80% probability and is viewed as the most realistic upside scenario.
End of the Four-Year Cycle Clouds Outlook
Market caution appears linked to Bitcoin closing 2025 in negative territory, an outcome that has shaken confidence in long-standing market patterns.
For years, many investors relied on the four-year cycle tied to Bitcoin’s halving events to anticipate major price movements.
That framework helped traders map out bull and bear phases with relative consistency across previous cycles.
With the latest cycle failing to deliver a clear upside finish, doubts have emerged about whether the model still applies.
The breakdown of this historical pattern has prompted traders to reassess risk, potentially explaining the subdued odds for aggressive price targets.
It has also opened the possibility that new trading dynamics could define Bitcoin’s future behavior.
Analysts Remain Firmly Bullish
Despite restrained prediction market sentiment, analysts continue to argue that Bitcoin’s longer-term outlook remains strong.
Much of this optimism is tied to shifting macroeconomic and political expectations in the United States.
President Donald Trump is expected to announce a new Federal Reserve chair in the coming weeks, a move many believe could signal a more accommodative monetary stance.
Markets are increasingly pricing in the likelihood of interest rate cuts, which historically favor risk assets such as cryptocurrencies.
This anticipation has already fueled strong rallies in precious metals, with gold and silver both reaching new all-time highs late in 2025.
By contrast, digital assets have lagged behind, suggesting potential upside if capital rotates back into crypto markets.
Regulation and Institutional Adoption in Focus
Regulatory developments are also seen as a key catalyst for renewed momentum.
Major crypto legislation, including the GENIUS Act and the CLARITY Act, is expected to bring clearer rules for market participants.
Greater regulatory certainty could encourage more institutional investors to enter the space with long-term commitments.
Several major financial institutions believe these factors will converge in Bitcoin’s favor during 2026.
Firms such as Standard Chartered, Strategy, and Bernstein have forecast Bitcoin reaching $150,000 next year.
More optimistic projections, including those from Fundstrat’s Tom Lee, suggest prices could ultimately rise toward the $200,000 to $250,000 range.
Blockchain analysts monitoring the Official Trump TRUMP memecoin on Solana have flagged substantial liquidity movements linked to project-associated wallets.
Over the past month, addresses labeled as part of the “Official Trump Meme” cluster have moved roughly $94 million in USDC out of TRUMP liquidity pools.
The latest transaction occurred on Tuesday, when approximately $33 million in USDC was withdrawn from liquidity.
Blockchain data platform Arkham reported that the funds were sent to an entity labeled Fireblocks.
From there, the stablecoins were routed onward to wallets labeled as belonging to Coinbase.
Public Solana records visible on Solscan corroborate the scale and timing of the USDC outflows from TRUMP-linked addresses.
A dramatic rise and fall
The transfers cap a volatile year for TRUMP, which launched on Jan. 18, just days before the US president’s inauguration.
The token surged rapidly, reaching an all-time high of $75.35 on Jan. 19.
From that peak, prices steadily unwound throughout the remainder of the year.
According to market data, TRUMP is now trading below $5.
That represents a decline of nearly 90% from its highs, leaving many late buyers facing steep losses.
Despite those losses, the token’s structure and trading activity have generated more than $320 million in fees for insiders and related entities.
What the transfers may mean
Onchain data alone cannot definitively establish who controls every wallet labeled within the Trump meme cluster.
Nor can it conclusively explain the purpose behind routing funds through Fireblocks toward Coinbase.
Such movements could reflect treasury management, tax planning or the settlement of offchain obligations.
However, for a politically branded asset closely tied to the image of a sitting US president, repeated large liquidity withdrawals attract attention.
Stablecoin movements of this scale naturally raise questions around transparency and governance.
Political scrutiny intensifies
The scrutiny is not limited to the crypto community.
Earlier this year, Democratic Party lawmakers formally requested details from the US Treasury Department regarding Trump’s crypto ventures.
The inquiry sought clarification on associated financial arrangements and potential conflicts of interest.
That political backdrop means that activity linked to the TRUMP token is being examined through both regulatory and partisan lenses.
A harsh year for memecoins
The broader memecoin sector in 2025 has provided little relief.
Major tokens such as Dogecoin, Shiba Inu and Pepe retained significant market capitalizations but ended the year far below their local peaks.
A long tail of smaller Solana and Ethereum-based memecoins experienced similar patterns.
Many election-themed and personality-driven tokens saw explosive early rallies followed by 80% to 90% drawdowns.
As liquidity thinned, exits became increasingly difficult for late participants.
At the time of publication, the TRUMP memecoin team had not responded to questions seeking clarification on the recent USDC transfers.
Spot Bitcoin exchange-traded funds experienced heavy withdrawals during Christmas week, with investors pulling hundreds of millions of dollars from US-listed products despite relatively stable Bitcoin prices.
Data shows that a combined $782 million flowed out of spot Bitcoin ETFs over the holiday period, marking one of the most pronounced short-term pullbacks since the products launched earlier this year.
The largest single-day outflow occurred on Friday, when ETFs tracking Bitcoin recorded $276 million in net redemptions.
BlackRock’s IBIT led the declines, with nearly $193 million leaving the fund in one session, while Fidelity’s FBTC saw $74 million in outflows.
Grayscale’s GBTC continued its longer-running pattern of smaller but persistent redemptions during the same period.
As a result, total net assets held across US spot Bitcoin ETFs fell to approximately $113.5 billion by the end of the week, down from levels above $120 billion earlier in December.
This decline occurred even as Bitcoin traded near the $87,000 level, showing little immediate price reaction to the ETF withdrawals.
Longest outflow streak since autumn
Friday’s withdrawals extended a negative trend that has now lasted six consecutive trading days, making it the longest stretch of ETF outflows since early autumn.
Across that six-day window, cumulative net outflows exceeded $1.1 billion, highlighting a clear pause in institutional inflows after months of strong demand.
Market participants note that holiday periods often exaggerate flow data due to thinner liquidity and reduced trading desks.
Vincent Liu, chief investment officer at Kronos Research, said the Christmas timing was a key factor behind the recent moves.
“As desks return in early January, institutional flows typically re-engage and normalize,” Liu said.
He added that Bitcoin ETF outflows during late December should not be interpreted as a structural shift in demand.
Expectations turn toward January and beyond
Looking ahead, Liu expects conditions to improve as institutions return from the holidays and capital allocation patterns reset for the new year.
He also pointed to macroeconomic factors that could become supportive for crypto-linked investment products.
“Rates markets are already pricing ~75–100 bps of cuts, pointing to easing momentum. Next, bank-led crypto infrastructure keeps scaling, reducing friction for large allocators,” Liu said.
Despite that optimism, some analysts see the recent data as part of a broader cooling trend.
Glassnode has reported that both Bitcoin and Ether ETFs have entered a sustained phase of net outflows, with the 30-day moving average of flows remaining negative since early November.
Because ETFs are widely viewed as a proxy for institutional sentiment, prolonged withdrawals may signal a period of reduced appetite for crypto exposure as overall market liquidity tightens.
Stani Kulechov, founder and chief executive of Aave Labs, has rejected allegations that he attempted to sway a controversial governance vote by purchasing large amounts of Aave tokens.
The claims emerged after reports that Kulechov had bought approximately $15 million worth of AAVE tokens shortly before a community proposal failed to pass.
“These tokens were not used to vote on the recent proposal, and that was never my intention. This is my life’s work, and I am putting my own capital behind my conviction,” Kulechov said.
Governance Concerns and Community Backlash
Members of the Aave community accused Kulechov of increasing his voting power to favor Aave Labs in a vote involving control of brand assets.
The proposal sought to bring Aave’s intellectual property under the control of the Aave decentralized autonomous organization, which governs the protocol.
More than 55% of participants voted against the proposal, while over 41% abstained and only 3.5% voted in favor.
Even before voting concluded, criticism mounted that the proposal had been rushed and bypassed standard governance processes.
Fees Dispute Sparks Controversy
The debate intensified after a DAO member known as EzR3aL raised concerns about fees generated through a recent integration with decentralized exchange aggregator CoW Swap.
According to the claim, those fees were directed to a wallet controlled by Aave Labs rather than the DAO.
EzR3aL argued that such fees belong to the DAO and should not have been redirected without community approval.
The issue quickly escalated into broader concerns about transparency and alignment between Aave Labs and token holders.
Communication Gaps Acknowledged
Kulechov acknowledged shortcomings in how Aave Labs has communicated its relationship with the DAO.
He said the company has not clearly explained how its products generate value for AAVE token holders.
“In the future, we’ll be more explicit about how products built by Aave Labs create value for the DAO and AAVE token holders,” he added.
Disputed Authorship of Proposal
The proposal was listed under the name of Ernesto Boado, a former chief technical officer at Aave Labs.
Boado later stated that the submission was made without his knowledge or consent.
He said he would not have approved the proposal had he been consulted prior to its publication.
The episode has renewed debate within the Aave ecosystem about governance safeguards and the separation between builders and token holders.