🛝BTC slides again: Millions lost

Morning, Readers! 🌞

The crypto market is in turbulent waters. Bitcoin is still struggling amid market volatility and is significantly lower than its October all-time high of $126K.

Top stories this week:

Headlines:

Breaking: On December 11, Bitcoin plunged below $90,000 after a hawkish U.S. Federal Reserve rate cut hit the market. More than $250,000 million in leveraged long positions were liquidated within hours.

Earlier on December 10, U.S. Federal Reserve Chair Jerome Powell announced a 25-basis point (bps) reduction, bringing the rate down to the 3.50-3.75% range.

A hawkish outlook overshadowed the 25-bps Fed rate cut. Powell signaled that 2026 may see fewer rate cuts, possibly only one. This reflects the Federal Open Market Committee’s (FOMC) growing concerns about rising inflation and a softening labor market. This was the third consecutive Fed rate cut in 2025.

Generally, rate cuts are good news and encourage greater investments in risky assets. However, the Fed’s cautious stance and only one rate cut in 2026 sparked disappointment among investors. They were expecting more aggressive measures and additional rate cuts in 2026, given the recent lows.

After the announcement, Bitcoin briefly rallied to $94,000 post the Fed rate cut, but quickly slumped to $89,000 within hours, before consolidating near $90,300. Today, Bitcoin is hovering around $86-$87K at the time of writing.

Other major altcoins ETH, XRP, Solana, Cardano, Dogecoin, etc., took sharp blows and experienced a dip of nearly 4-8%.

The sudden drop in Bitcoin prices triggered a bearish sentiment and liquidation of more than $250 million in long positions in just a few hours.

Moreover, the Bank of Japan’s (BOJ’s) upcoming rate hike decision (anticipated around 18-19 December) from the current 0.50% to 0.75% (its highest level in 30 years) could impact Bitcoin prices and also tighten global liquidity.

🔔Update: In a historic move, the Office of the Comptroller of the Currency (OCC) released an official news release granting crypto firms Circle, Ripple, Paxos, BitGo, and Fidelity Digital Assets “conditional approval” to operate as national trust banks.

The five crypto firms secured one of the biggest regulatory approvals within the U.S. banking system. OCC stated that these 5 firms have now received preliminary approval. After they meet the specific conditions, they will join the OCC-supervised 60 other national trust banks.

The regulatory body reiterated that it has rigorously examined all the applications before granting them the conditional approvals.

OCC said that it “will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy.”

The OCC conditionally approved Circle’s application for the newly formed First National Digital Currency Bank and Ripple National Trust Bank.

Leading crypto firm Coinbase also filed its application for OCC approval to expand its regulatory framework for digital assets.

The U.S. banking system was deeply influenced by rigid regulations and imposed restrictions, and denied services (debanking) even to lawful crypto companies.

The OCC approval is a big win for trusted crypto platforms and aligns with Trump’s pro-crypto agenda. It establishes clear regulatory pathways and fosters inclusivity, credibility, and mainstream adoption for digital assets in the U.S.

After the final stamp, these national trust banks can manage and hold crypto assets, provide regulated custody, enable stablecoin issuance, and integrate digital assets with the U.S. traditional financial systems.

Ex-Terra co-founder Do Kwon was sentenced to 15 years in prison in the U.S. over $40 billion TerraUSD/Luna scam in 2022 on Thursday. He may face another trial in Korea. A judge called the incident an “epic fraud.”

The 34-year-old co-founder of Singapore-based Terraform Labs pleaded guilty on multiple counts, including:

Do Kwon was primarily accused of orchestrating a scam and misleading investors about the stability of its $1-pegged algorithmic stablecoin TerraUSD.

In May 2021, the stablecoin’s value dropped below $1. Kwon convinced investors that the peg value will automatically recover through a computer algorithm called “Terra Protocol.” Reports suggest that Kwon artificially inflated the stablecoin value, which created an initial hype and built investor confidence. But later in May 2022, the stablecoin collapsed.

Kwon was arrested in Montenegro in March 2023 and was sentenced to a 15-year jail term in the U.S.

His prosecutors sought a 12-year imprisonment, which was later extended to 15 years, given the severity of his actions.

Speculations suggest that Kwon may face separate charges in Korea for violations under the Capital Markets Act. This means an additional jail term and may extend up to 30 years.

A wrapped cryptocurrency is a digital asset that represents the same value as another cryptocurrency on a different blockchain.

Most cryptocurrencies run only on their native networks. For example, Bitcoin operates only on the Bitcoin network. If you want to use Bitcoin on an Ethereum-based DeFi application, you can “wrap” it to create WBTC (wrapped Bitcoin) and use it on Ethereum. This improves interoperability and functionality of the token across chains.

Here's how it works:

🎲 Play the Quiz

Last week’s quiz result: Option B – Replace an unconfirmed transaction with higher fees.

On December 15, banking giant JPMorgan Chase rolled out its first-ever tokenized money market fund, called “MONY” (My OnChain Net Yield Fund), on the Ethereum blockchain. The bank provided the initial capital with a seed fund of $100 million and opened for qualified investors on Tuesday.

Backed by JPMorgan’s tokenization platform, Kinexys Digital Assets, MONY can be accessed by individuals with a minimum investable asset of $5 million and $25 million for institutional investors. Additionally, a minimum investment threshold of $1 million is required. Read the official press release.

French fintech company Lyzi partners with premium luxury car brands, Porsche Montpellier and Lamborghini Bordeaux, to introduce crypto payments for elite cars. Customers can now use Bitcoin, Tezos, stablecoin, and 80 other cryptocurrencies to buy high-end luxury cars.

Lyzi’s instant payment service will convert the cryptocurrencies into euros in real-time, enabling transparency and providing a hedge against market volatility. Customers can pay directly through their crypto wallets.

Based on CoinMarketCap Data, December 17, 1:45 AM, ET.

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