Regulation

Crypto companies holding large digital asset treasuries face a critical December. With stock values falling, the risk of forced selling looms, while a potential Fed rate cut and new EU regulations add to the uncertainty, forcing the sector to mature.

With an 87% chance of a Federal Reserve rate cut this Wednesday, the crypto market is on edge. Traders are weighing the potential for a year-end rally against the possibility that the move is already priced in, while also looking ahead to a new era of leadership at the central bank.

European authorities have dismantled a massive crypto fraud network that laundered over €700 million using fake trading platforms and sophisticated marketing, including deepfakes. Coordinated operations across multiple countries led to arrests and the seizure of assets.

The Bank of Japan is preparing to raise rates to 0.75%, the highest since 1995, ending decades of ultra-loose policy. This could impact risk assets like crypto by reducing the yen carry trade, which has been a source of cheap funding.

The European Commission’s plan to centralize crypto licensing under ESMA is causing concern in the industry, with experts warning of delays and uncertainty.

The European Commission has proposed a plan to centralize crypto oversight under a single ‘super-watchdog’, ESMA, aiming to reduce regulatory fragmentation and create a more unified market.

Europol has led a major international operation to take down a sprawling cryptocurrency fraud network responsible for laundering over €700 million. The criminal organization used fake investment platforms and sophisticated marketing, including deepfakes, to lure victims before laundering the proceeds across numerous exchanges.

Fed Vice Chair Michelle Bowman’s recent remarks signal a potential shift towards deregulation to boost credit flow. Analysts believe this preparation for a softer economy could increase liquidity, benefiting Bitcoin in the medium term, though short-term volatility is likely.

China’s central bank has reaffirmed its total ban on all cryptocurrency activities, announcing stricter enforcement measures. The news has contributed to a sharp drop in Bitcoin’s price, which fell towards $86,000 amid broader market uncertainty.

A cooling U.S. labor market is creating downward pressure on Bitcoin’s price as investors become more risk-averse. While weak jobs data can initially hurt crypto, it also raises expectations for Federal Reserve rate cuts, which could benefit the market later.