The past couple of weeks have been action-packed for the US crypto market. From a strategic partnership raising eyebrows due to its ties to the oval office to signs of a slowing US labor market that could potentially rattle Bitcoin’s price before Christmas, the recent few weeks have presented numerous developments that continue to impact the US crypto market.
Meanwhile, data from CoinShares revealed outflows of more than $952 million from cryptocurrency investment products last week, which marked the first weekly outflow of the month. According to CoinShares, this was largely due to regulatory delays surrounding the approval of the US Clarity Act.
However, the recently announced unified SEC and CFTC leadership seems to be easing negative market sentiment as it points to clearer rules, lighter friction, and stronger US backing. Let’s get into more detail about the top three News that caught headlines recently.
Trump Media, Crypto.com Partnership Raises Eyebrows
Crypto.com, a prominent player in the crypto space—especially after launching its sports event trading product in December 2024—faced over a year of regulatory scrutiny during President Biden’s administration.
This increased attention came shortly after the platform shut down its election prediction market and introduced a Super Bowl prediction trading market across all 50 U.S. states. The move drew notice from lawmakers and industry analysts, including casino.com, a leading iGaming resource that tracks betting innovations and regulatory trends.
Rather than offering traditional sports wagers, Crypto.com allowed users to back a team by purchasing “contracts” tied to a win or loss outcome. Casino.com covered this news on their site highlighting this trading-style model can enable prediction markets to operate outside the United States’ tightly regulated sports betting framework.
This Super Bowl trading market nonetheless sparked swift backlash from lawmakers, who warned of potential gambling-related risks and regulatory loopholes within the U.S. crypto ecosystem. At the same time, the firm became a focal point of President Biden’s broader effort to bring greater oversight to the largely unregulated cryptocurrency industry.
Interestingly, the company’s legal peril completely dissipated once Trump took office after winning the 2024 election. Not only that, but by August, the firm announced a billion-dollar venture with Trump Media. In October, Crypto.com also made public that Truth Social users would be able to wager on an array of world events via an exclusive online marketplace.
Legal & Ethics experts point out that Crypto.com’s shift from being a regulatory target to a business partner under the Trump administration provides a conflict of interest case study. Over the course of his second presidency, the President hasn’t been shy when it comes to allowing his family businesses to enter into lucrative deals with companies regulated by the federal government.
In the case of Crypto.com, its partnership actually ended up being a game-changer for Trump Media, which had been haemorrhaging cash since its 2021 launch. Even though it didn’t have to put up all that much capital, Trump Media and Technology Group still managed to secure a pretty substantial ownership stake tied to Crypto.com’s Cronos token, which is a pretty unusual way to do things.
US Nonfarm Payrolls Reveal a Cooling Labor Market That Could Rattle Crypto Prices
According to the US Bureau of Labor Statistics, October 2025 saw a decline of 105,000 jobs, followed by a 64,000 gain the following month, highlighting the uneven nature of recent US labor market activity.
The weak October print and modest November recovery signals the US labor market is losing momentum, raising concerns among investors about a potential economic slowdown. Analysts point out such fluctuations in employment growth could weigh on consumer confidence and spending, which are key drivers for both equities and cryptocurrency markets.
In a bullish scenario, the recent softening in the labor market could encourage markets to price in potential interest rate cuts in 2026. Easing financial conditions would generally support risk assets, including cryptocurrencies. In particular, Bitcoin, which has remained range-bound near $90,000, could see a relief rally toward $95,000 if investors focus on liquidity expectations and anticipated policy support.
However, significant downside risks remain. The higher-than-expected unemployment figures may reignite fears of a recession, and if economic weakness dominates the narrative, risk assets could experience renewed selling pressure. This environment sets the stage for volatile, whipsaw price action across cryptocurrencies, equities, and foreign exchange markets, as investors weigh the prospects of stimulus against mounting economic uncertainty.
US Crypto Funds Log a Record $952 Million Outflow Courtesy of Regulatory Uncertainty
US crypto investment products saw a net outflow of $952 million last week, the first decline in four weeks, according to CoinShares data. The outflows were primarily concentrated in the US, totaling $990 million, partly offset by small inflows into Canadian and German funds.
Analysts linked the sell-off to ongoing delays in the US Clarity Act, which has extended regulatory uncertainty, as well as concerns over large investors trimming positions. Ethereum-focused funds were hit the hardest, losing $555 million, while Bitcoin products saw $460 million withdrawn.
Against this backdrop of investor caution stands a glimmer of hope that the regulatory environment is finally starting to take shape. Recent developments suggest greater alignment between the Securities and Exchange Commission and the Commodity Futures Trading Commission, with industry observers noting that coordinated leadership at the two agencies could eventually help establish clearer rules for digital assets and ease long-standing regulatory friction.
