Ethereum’s price dropped sharply this week, falling to a key support level of $3,540, marking a 10% decline from its recent peak. The pullback comes in the wake of the Federal Reserve’s hawkish interest rate announcement, which also affected other cryptocurrencies like Bitcoin and Solana. The decline, however, does not change Ethereum’s strong fundamentals, as it continues to attract significant institutional interest, particularly through Ethereum Exchange-Traded Funds (ETFs), which have seen 18 consecutive days of inflows, totalling over $2.46 billion.
Despite the drop, Ethereum remains a dominant player in the blockchain space. The amount of staked ETH continues to rise, now surpassing 54.7 million tokens, with more than 206,000 unique stakers. This reflects long-term optimism from investors who are holding onto their positions. Ethereum’s Decentralized Finance (DeFi) ecosystem is also growing, with total value locked surpassing $73.7 billion, far ahead of competitors like Solana, Base, and Arbitrum.
The price retreat follows the Federal Reserve’s decision to cut its 2025 interest rate forecast, from four cuts to just two. This hawkish tone has had a cooling effect on cryptocurrencies and other risky assets, which typically perform better under a more dovish stance. Ethereum’s price chart shows a bearish double-top pattern, indicating potential further declines if the $3,526 support is broken. However, if Ethereum can break past the $4,090 resistance level, it may see a stronger recovery.
The Hong Kong Securities and Futures Commission (SFC) has granted conditional licences to four virtual asset trading platforms, including Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology. However, the platforms must meet certain regulatory conditions before they can begin fully operating.
These licences follow the SFC’s risk-based inspections, which were introduced in June to assess compliance with the region’s virtual asset regulations. The inspections are aimed at ensuring investor protection while promoting growth in the cryptocurrency sector.
The platforms must undergo third-party vulnerability assessments and penetration tests to address any potential security risks. The SFC will oversee the process, ensuring the platforms meet all necessary requirements before expanding their operations.
The SFC has also issued a roadmap to streamline the licensing process, providing clear guidance to ensure that licensed platforms maintain the highest security and compliance standards, safeguarding user funds and preventing fraud.
Bitcoin and the broader crypto market experienced a sell-off following the Federal Reserve’s announcement of a 25 basis point rate cut to its benchmark policy rate. While the rate cut was anticipated by many traders, the market reacted negatively to Fed chair Jerome Powell’s indication that fewer rate cuts than initially expected could take place in 2025. Following the announcement, Bitcoin’s price dropped by 4.6%, falling to $101,300, and Ether saw a 5.96% decline, dropping to $3,600.
Powell’s comments about only two rate cuts in 2025 and an increased inflation outlook raised concerns among market participants. The Fed’s revised inflation forecast, which now expects a 2.5% rate in 2025, also contributed to a more cautious sentiment. Some traders view these shifts in perspective as a sign of a more hawkish stance from the central bank, particularly with the potential policy changes under the incoming administration.
Crypto analysts noted that the drop in Bitcoin’s price cleared out both long and short positions, with BTC falling into a bid zone between $100,000 and $98,000. The key for Bitcoin to maintain upward momentum will be reclaiming the $100,000 to $101,400 zone before the daily candlestick closes. The recovery is seen as crucial to restore market confidence.
The US Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two individuals and a company based in the United Arab Emirates (UAE) for allegedly aiding North Korea’s use of digital assets in illegal activities.
The sanctions target Lu Huaying and Zhang Jian, along with Green Alpine Trading, LLC, a front company linked to a broader scheme of money laundering. These actions aim to disrupt a network that, according to US authorities, funnels millions of dollars to North Korea’s nuclear weapons and missile programs.
North Korea has a history of using digital assets and cybercrimes to fund its military efforts, employing IT workers and hackers to generate funds that are often obscured through complex laundering operations. The sanctions focus on Sim Hyon Sop, a representative of North Korea’s state-run Korea Kwangson Banking Corporation, who has been previously sanctioned. Sim is accused of using a mix of cryptocurrency cash-outs and money mules to move funds back to the regime for its military projects.
Under the new sanctions, any property owned by the designated individuals or entities in the US is blocked, and US citizens and companies are prohibited from engaging in transactions with them. Non-compliance could lead to further enforcement actions, even against those outside the US. The move reflects a coordinated effort with the UAE to combat North Korea’s destabilizing activities. It highlights the importance of international cooperation in tackling illicit financial networks that exploit new technologies, including cryptocurrencies.
European Parliament Member from France, Sarah Knafo, has called on the EU to embrace Bitcoin by establishing national strategic reserves and rejecting the European Central Bank’s (ECB) proposal for a digital euro. In a video shared on her X account, Knafo advocated for European nations to develop their crypto-mining industries and cease increasing taxes on cryptocurrency holders. She highlighted Bitcoin as a means to secure freedom and protect citizens from the overreach of centralised financial systems.
Knafo, citing the example of El Salvador‘s adoption of cryptocurrency and the US plans for a Bitcoin reserve, criticised the EU for clinging to outdated financial systems that are prone to inflation and crises. She warned that the ECB’s digital euro could lead to an over-centralised system, where officials could control transactions and potentially exclude individuals from the banking system for expressing dissenting opinions.
Knafo also pointed to the growing global trend of nations considering Bitcoin reserves to safeguard their financial stability, with countries like Japan, Russia, and Brazil exploring similar initiatives. She argued that Bitcoin could serve as a more reliable financial system, offering long-term protection from economic mismanagement.
The call for a Bitcoin reserve reflects the increasing global recognition of decentralised finance as a potential solution to financial instability, with various countries looking to Bitcoin as a safeguard for national funds.
Bit Trade, the operator of Kraken in Australia, has been fined $8 million for offering an unapproved margin lending product to over 1,100 customers. The Federal Court of Australia ruled that the company breached financial regulations by failing to assess customer suitability and neglecting to provide a Target Market Determination (TMD), a document essential for ensuring products are appropriately matched to consumers’ needs.
The Australian Securities and Investments Commission (ASIC) revealed that customers lost $7.85 million due to the product, with one individual losing $6.3 million. Justice John Nicholas criticised Bit Trade’s actions as “serious” and profit-driven, calling out the company for its delayed response to compliance issues. In addition to the fine, Bit Trade was ordered to cover ASIC’s legal costs.
Kraken was disappointed with the ruling, arguing that Australia’s regulatory framework lacks clarity and calls for tailored cryptocurrency laws. However, ASIC Chair Joe Longo described the decision as a turning point for consumer protection, urging digital asset firms to meet compliance obligations. The regulator is currently consulting with the crypto industry on updates to its guidance, though critics claim the government’s inaction has left the sector in “regulatory limbo.”
Bitcoin prices have reached a new record, surpassing $107,000 amid speculation that President-elect Donald Trump might establish a Bitcoin strategic reserve. The milestone came shortly after prices broke through $106,000, reflecting growing optimism in the cryptocurrency market.
Meanwhile, MicroStrategy announced a $1.5 billion bitcoin purchase, adding 15,350 bitcoins at an average price of $100,386 each. The company now holds 439,000 bitcoins, worth $47 billion, and has seen its market cap soar from $1.1 billion in 2020 to nearly $100 billion. The firm’s shares have surged by 527% this year, boosted by Bitcoin’s rally and its forthcoming inclusion in the Nasdaq 100 index.
Despite its impressive growth, analysts suggest MicroStrategy may face challenges in joining the S&P 500 due to concerns over profitability. Current accounting rules restrict how gains from bitcoin holdings are recorded, although new standards expected in January 2025 could help the company more accurately reflect its bitcoin-related gains.
Bitget has secured a Bitcoin Service Provider licence from El Salvador’s Central Reserve Bank, allowing the platform to offer Bitcoin-to-fiat exchanges, payments, and custody services in the country. This licence is part of Bitget’s strategy to strengthen its global regulatory position and expand its presence in Latin America.
El Salvador, which made Bitcoin legal tender in 2021, has become a hub for cryptocurrency adoption. With this new licence, Bitget aims to tap into the country’s growing crypto market, which serves as a gateway to the wider region. The company is also pursuing a Digital Assets Service Provider licence from El Salvador’s National Commission of Digital Assets to extend its services to other cryptocurrencies.
In addition to its progress in Latin America, Bitget has secured Virtual Asset Service Provider licences in Poland and Lithuania and recently re-entered the UK market through a partnership with Archax. The company also plans to set up a dedicated team in El Salvador to strengthen its local presence.
Ripple has confirmed that its RLUSD stablecoin, backed by the US dollar, will begin trading globally on 17 December. The launch follows approval from the New York Department of Financial Services (NYDFS) on 10 December. Ripple’s RLUSD stablecoin is 100% supported by US dollar deposits, short-term government Treasurys, and other cash equivalents. Initially, it will be available on major crypto platforms such as Uphold, MoonPay, and Archax, with plans for further listings in the coming weeks.
Ripple aims to target global adoption of RLUSD, with its partner network facilitating its use across regions including the Americas, Asia-Pacific, the UK, and the Middle East. The company plans to integrate RLUSD into its Ripple Payments protocol by early 2025 to support cross-border settlement and treasury remittance. Ripple also envisions RLUSD playing a role in decentralized finance protocols and trading tokenized real-world assets on-chain.
As part of the RLUSD launch, Ripple has appointed former banking officials, including Raghuram Rajan, former governor of the Reserve Bank of India, and Kenneth Montgomery, former vice president of the Federal Reserve Bank of Boston, to its advisory board. These appointments are aimed at strengthening the stablecoin’s regulatory and operational strategy. Ripple’s focus on compliance and reliability aims to position RLUSD as a leading player in the future of global payments.
Thailand’s former Prime Minister, Thaksin Shinawatra, has urged the government to delve deeper into cryptocurrencies to stay competitive in an increasingly digital world. Speaking at a lecture in Hua Hin, Shinawatra highlighted the growing importance of understanding digital assets, noting that global digitisation reshapes economies. He remarked on the proliferation of cryptocurrencies and emphasised that Thailand must adapt to avoid falling behind.
The country has already taken significant steps in exploring the digital economy. The Securities and Exchange Commission launched a regulatory sandbox earlier this year, allowing businesses to experiment with digital assets in a controlled environment. Meanwhile, the government fulfilled its campaign promise to distribute 10,000 baht in digital cash to 45 million residents as an economic stimulus.
Private institutions are also making moves, with Kasikornbank becoming Thailand’s first licensed crypto custodian in September. Regulatory shifts have further opened the door for mutual and private funds to invest in digital assets. Additionally, the Bank of Thailand collaborates with Hong Kong on tokenised cross-border settlements, cementing its role in shaping the region’s digital finance future.
