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.
Social sentiment surrounding XRP has dropped sharply, falling into what analysts describe as the “fear zone,” a condition that has historically preceded notable price rebounds.
The shift in mood comes as the token continues to trade well below recent highs, despite signs of resilience from institutional investors.
Negative sentiment reaches extreme levels
Market intelligence firm Santiment said social media commentary around XRP has turned unusually pessimistic.
“XRP is seeing far more negative social media commentary than average,” the firm noted, adding that this increases the likelihood of a “strong price rebound.”
Historical data suggests similar sentiment extremes have coincided with rallies.
The last two instances of comparable fear occurred in late November and early December, when XRP went on to rally 22% and 11% respectively over the following days.
“Historically, this setup leads to price rises,” Santiment said.
“When retail has doubts about a coin’s ability to rise, the rise becomes significantly more likely.”
Price action remains under pressure
Despite the potential contrarian signal, XRP has struggled to regain upward momentum.
The token slipped nearly 2% over the past 24 hours, trading below $1.85.
That leaves XRP down almost 50% from its seven-year high of $3.66.
Still, several analysts argue the pullback does not necessarily signal deeper weakness.
“XRP sentiment is ugly again. But the money doesn’t look scared,” said analyst DefiPeniel, pointing to steady inflows into recently launched spot ETFs.
Institutional flows support long-term confidence
According to DefiPeniel, institutional participation paints a very different picture from retail sentiment.
“These investment products have seen a perfect streak of inflows since launch,” he said, noting that assets under management have climbed beyond $1.2 billion.
The contrast between muted price action and sustained capital inflows suggests longer-term confidence remains intact.
“Markets don’t bottom when vibes improve,” DefiPeniel added.
“They bottom when price holds and sentiment breaks.”
Key resistance levels dominate the chart
From a technical perspective, XRP faces several hurdles before a sustained recovery can take shape.
The price must first break above a multi-month descending trendline near $1.92 and hold it as support.
Beyond that, heavy resistance lies between $1.96 and $2.00, an area where investors accumulated roughly $1.5 billion worth of XRP.
A daily close above $2 would open the path toward a move into the $2.10 to $2.50 range.
That zone contains multiple major moving averages, including the 50-day SMA, 50-week EMA and 50-week SMA.
Downtrend risks remain
Not all analysts are convinced a turnaround is imminent.
XRP remains “still in a strong downtrend,” according to trader C3_trading.
The analyst noted repeated rejections between $2.50 and $2.70 and said a decisive breakout is needed to change the broader trend.
“Wait for a breakout above $2.50 for trend shift, otherwise expect continuation lower,” he said.
On the downside, a failure to hold above $1.80 could expose XRP to a retest of $1.75 and potentially the April low near $1.61.
A break below that level would significantly raise the risk of a deeper slide toward $1.25 and even $1.00 in 2026.
Bitcoin (BTC) circled the $88,000 mark on Sunday amid anticipation of renewed volatility into the weekly close.
Market participants remain divided on short-term BTC price movements.
While some forecasts predict six-figure prices, others are preparing for a potential retreat toward $70,000.
Analysts cite rising Binance inflows as a factor that could weigh on BTC’s price.
Traders Anticipate Bullish Moves
Data from Cointelegraph Markets and TradingView showed BTC/USD trading within a $5,000 range for its eighth consecutive day.
The trading community increasingly expects a breakout.
“$BTC relief rally could happen soon,” crypto analyst Ted Pillows wrote on X.
He predicted a pump toward the $98,000–$100,000 range before the next potential downturn.
Pillows highlighted the importance of buyer pressure to prevent the 100-week exponential moving average from falling below its simple moving average.
“The last 2 instances caused a 40%-50% $BTC crash within 4-6 weeks,” he warned.
Trader Captain Faibik echoed bullish sentiment, predicting a near-term breakout followed by a surge in FOMO-driven entries.
“In next few days, Bitcoin will breakout & then everyone will rush in with FOMO entries which won’t be beneficial,” he said.
Another trader, Korinek_Trades, projected fresh all-time highs, but noted a possible macro-level low could come first.
“We should still see another higher high for blue W5 up to ATH complete a 5 wave structure,” they wrote, using Elliott Wave theory to forecast BTC’s next moves.
- Upside target: $150,000 in the medium term.
- Short-term observation: Price stuck below $90,000, awaiting breakout.
Risks of a Return to $70,000
CryptoQuant highlighted the possibility of BTC revisiting prior highs near $70,000.
Bitcoin remains “fragile” and could drop toward strong buyer zones.
“The next major downside target lies at the high-demand zone between $70,000 and $72,000, where stronger buyer interest is expected to emerge,” CryptoOnchain noted.
Rising BTC inflows to Binance add to downside risk.
“The combination of a technical breakdown below $90K and the injection of $1.4B worth of BTC into Binance significantly increases the probability of a corrective move toward the $70K–$72K demand zone,” the analysis concluded.
Bitcoin is under pressure as macro analysts warn that an expected interest rate hike by the Bank of Japan on December 19 could trigger a deeper correction toward the 70,000 dollar level.
Several analysts say past market reactions suggest Bitcoin is vulnerable when Japanese monetary policy tightens.
The core concern centers on liquidity.
When the Bank of Japan raises rates, global borrowing costs increase, the yen strengthens and carry trades unwind.
This combination has historically weighed on risk assets, including Bitcoin.
Previous BOJ Hikes Triggered Steep Market Pullbacks
Data from analyst AndrewBTC shows that every BOJ rate hike since 2024 coincided with significant declines in Bitcoin.
The asset fell by around 23% in March 2024, 26% in July 2024 and 31% in January 2025 following policy tightening announcements.
The analyst argues that similar conditions are emerging again as the central bank signals another interest rate increase.
Economists in a recent survey overwhelmingly expect the BOJ to move ahead with tightening this month.
The dynamics behind these declines stem from Japan’s role in global liquidity flows.
When Japanese rates rise, borrowing becomes more expensive and leveraged investors often unwind positions built on cheap yen financing.
Such periods generally trigger risk-off sentiment across global markets.
Bitcoin, widely held through leverage across derivatives platforms, tends to be sensitive to liquidity shocks.
Analyst EX said BTC will “dump below $70,000” if macro conditions develop as expected.
His outlook aligns with others who see Bitcoin’s recent weakness as part of a broader liquidity-driven repricing.
Technical Signals Also Point Toward a $70,000 Target
Chart analysts note that Bitcoin is currently trading inside a bear flag pattern.
The structure formed after Bitcoin’s sharp drop from the 105,000 to 110,000 dollar zone earlier in the year, followed by a narrow upward drift.
Bear flags usually indicate a pause before the prevailing downtrend continues.
A breakdown below the lower trendline could push Bitcoin toward the 70,000 to 72,500 dollar region.
Multiple analysts, including James Check and Sellén, have outlined similar targets over the past month.
They argue that technical and macro factors are overlapping at a time when liquidity is tightening worldwide.
The convergence of patterns has made traders increasingly cautious.
Many see the coming BOJ decision as a potential trigger for a sharp move.
Bitcoin’s Short-Term Outlook Remains Fragile
Analysts say market sentiment has weakened significantly since Bitcoin failed to reclaim the 105,000 dollar level earlier in the year.
Each rebound attempt has met strong selling pressure.
With liquidity thinning and macro uncertainty rising, traders are watching whether Bitcoin can hold current support levels.
A decisive break could open the door to deeper retracement.
For now, the dominant view is that Bitcoin is exposed if the BOJ raises rates again.
Japan’s monetary decisions have become an unusually important driver for global risk assets.
Bitcoin’s path will depend on whether macro tightening continues and whether buyers return with enough strength to absorb the next wave of selling.
Until then, analysts see elevated downside risk and limited signs of bullish momentum.
Fresh concerns about Tether’s financial health surfaced this week after comments from BitMEX co-founder Arthur Hayes suggested the stablecoin issuer could face serious pressure if the value of key reserve assets were to fall.
Tether, which issues the market-leading USDT stablecoin, has faced repeated scrutiny over the composition and transparency of its reserve holdings.
Hayes reignited the debate by arguing that the company is increasingly exposed to volatile positions that could undermine its ability to maintain a 1:1 dollar peg.
Hayes Says Decline in Bitcoin and Gold Could “Wipe Out” Equity Buffer
In recent commentary, Hayes said Tether is “in the early innings of running a massive interest-rate trade.”
He warned that a 30% decline in the value of the company’s Bitcoin and gold holdings could eliminate its equity cushion.
Tether has significantly expanded its exposure to gold over the past several years, alongside an increase in Bitcoin holdings.
Hayes argued that while Tether currently earns substantial income from interest-bearing assets, this strategy increases vulnerability if markets turn sharply lower.
He concluded that in a severe downturn, USDT could become “technically insolvent.”
CoinShares Research Head Pushes Back
James Butterfill, head of research at digital-asset firm CoinShares, disputed Hayes’s analysis in a market update issued on Dec. 5.
He said concerns about Tether’s solvency “look misplaced,” pointing to the company’s latest attestation covering the third quarter of 2025.
According to that report, Tether held $181 billion in total reserves against approximately $174.45 billion in liabilities.
This left a surplus of nearly $6.8 billion.
Butterfill argued that the data show no immediate systemic risk, although he emphasised that stablecoin issuers should always be monitored cautiously due to their role in broader market liquidity.
Ongoing Debate Over Reserve Quality
Tether remains one of the cryptocurrency sector’s most profitable companies.
It generated an estimated $10 billion in profit during the first three quarters of 2025 — an unusually high figure considering its relatively small workforce.
However, the firm continues to face criticism regarding the composition of its reserves.
S&P Global recently downgraded USDT’s ability to defend its dollar peg, citing exposure to “higher-risk” assets such as gold, loans and Bitcoin.
Tether CEO Paolo Ardoino dismissed the downgrade as “Tether FUD,” arguing that the company’s financial statements show its position remains strong.
He pointed to the firm’s attestation as evidence of adequate liquidity and responsible asset management.
Market Position Remains Dominant
Despite recurring concerns, USDT continues to be the largest stablecoin in the world.
The token has approximately $185.5 billion in circulation.
It also controls nearly 59% of the global stablecoin market.
Tether maintains a substantial allocation to U.S. Treasuries — estimated at more than $130 billion — which remains its most stable reserve component.
However, the increasing share of Bitcoin and gold exposes the company to greater price swings, keeping the debate alive among analysts and regulators.
The long-running dispute over Tether’s reserve practices is unlikely to subside soon, particularly as stablecoins continue to serve as a key pillar of global cryptocurrency trading.