digitalassets

The Bank of Japan (BoJ), one of the world’s most influential central banks, is preparing a historic shift: starting in January 2026, it will begin selling off its massive ETF portfolio worth 83 trillion yen (about $534 billion). The move comes just as markets brace for the country’s first major interest rate hike in two decades — and the crypto world is watching closely.

A Slow and Strategic Exit From ETFs
According to official plans, the BoJ will gradually offload its ETF holdings to avoid shocking markets. The current roadmap sets a pace of 330 billion yen per year, meaning the process could stretch out over decades.
This shift is significant — the central bank holds unrealized gains after a sharp rise in Japanese equities over the last two years. With such a dominant position in the domestic stock market, BoJ’s unwind, even if slow, will impact global liquidity flows far beyond Asia.

Interest Rate Hike Expected: Highest Since the Early 2000s
Markets widely expect BoJ to raise interest rates by 25 basis points at its December 18–19 meeting, taking the benchmark rate to 0.75% — the highest in nearly 20 years. On Polymarket, there’s currently a 98% probability of that hike being confirmed.
This move could reshape global capital flows. For decades, the Japanese yen has been the top funding currency for carry trades, where investors borrow yen and invest in higher-yielding assets — including cryptocurrencies. That dynamic is now breaking down.
“For years, the yen was the go-to currency for cheap leverage. But with Japanese bond yields rising rapidly, the carry trade is shrinking fast,” notes crypto analyst Mister Crypto.

Bitcoin Feels the Pressure
Markets are already reacting. Bitcoin has slipped below $90,000, currently trading near $89,700. Still, analysts say the reaction has been relatively muted. With BoJ’s policy shift widely anticipated, many traders have already adjusted their positions.
However, the pressure is real. As yen-based leverage contracts, risk assets like Bitcoin are increasingly exposed — especially in an environment of tightening global liquidity.

ETF Market Under the Microscope
ETFs have become a critical part of global investing, covering everything from stocks to digital assets. BoJ’s exit from this space comes at a time when Bitcoin ETFs are gaining traction in Western markets, marking a generational shift in how investors access crypto.
While Japan pulls liquidity back, investors in the U.S. and elsewhere are watching closely. For the crypto sector, one thing is clear: 2026 may be a year of survival for only the most resilient players.

#BankOfJapan , #etf , #CryptoLiquidity , #DigitalAssets , #BTC

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

World Liberty Financial (WLFI), the crypto company majority-owned by the family of President Donald Trump, has launched a significant expansion of its USD1 stablecoin into the institutional Canton Network. This marks a major shift away from traditional retail blockchains toward infrastructure designed specifically for regulated global finance.
The move follows a high-profile investment from Abu Dhabi’s MGX, which used USD1 to complete a $2 billion investment into Binance — after which Binance introduced new USD1 trading pairs for major cryptocurrencies including BNB, ETH, and SOL.

USD1 Enters the Canton Network — Why It Matters
USD1, one of the fastest-growing digital dollar stablecoins with a market capitalization of about $2.7 billion, is fully backed by U.S. Treasury bills, USD deposits, and cash equivalents. WLFI is now deploying this asset into Canton Network — an ecosystem that enables settlement of tokenized assets and digital dollars with institutional-grade privacy, compliance, and regulatory oversight.
Unlike traditional blockchains, Canton provides:
24/7 settlement capabilitiesInstitutional-level privacy and auditabilityA framework for on-chain asset issuance, intraday financing, repo trades, and cross-border payments
This allows USD1 to be used for missions that standard retail stablecoins can handle only to a limited extent — particularly in capital markets, banking, large asset managers, and sovereign institutions.
WLFI COO Zak Folkman emphasized that Canton offers “the ideal institutional infrastructure for real-world settlement in a digital dollar.” Canton Foundation’s executive director Melvis Langyintuo added that USD1 meets rising demand for interoperable digital assets designed for regulated financial operations.

Binance Expands USD1 Use — A Major Adoption Milestone
Another key development came from Binance, which announced new trading pairs for USD1 with major cryptocurrencies. Binance will also convert reserves backing the Binance-Peg BUSD (B-Token) into USD1 on a 1:1 basis, making USD1 part of the exchange’s primary collateral model.
WLFI called the shift a major step forward:
“Incorporating USD1 into the liquidity and trading systems of the world’s largest exchange gives hundreds of millions of users improved access to a digital dollar,” said CEO Zach Witkoff.
According to DeFiLlama, more than $2.8 billion USD1 is currently in circulation — a large portion originating from the MGX investment into Binance conducted entirely using USD1.

Where USD1 Is Heading
Rising adoption suggests that USD1 is becoming a strategic stablecoin for both retail and institutional users. The expansion into Canton Network also opens the door to a new financial segment — tokenized assets, institutional repo markets, cross-border settlement, and sovereign-level financial operations.
WLFI appears to be positioning USD1 not just as another stablecoin, but as an emerging foundational component of next-generation global financial infrastructure.

#USD1 , #TRUMP , #Stablecoins , #DigitalAssets , #Tokenization

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The price of XRP is under renewed pressure as the broader crypto market experiences a sharp downturn. Bitcoin has fallen below $90,000 and Ethereum slipped under $3,000, triggering widespread sell-offs across major assets. Liquidity has tightened rapidly as risk appetite turns into fear.
Throughout the decline, XRP has mostly followed the broader market trend rather than showing isolated strength. With leading cryptocurrencies losing key psychological levels, XRP’s price now reflects overall macro weakness rather than token-specific stress.

Whale Selling Intensifies: Over 1.18 Billion XRP Dumped in Four Weeks
One of the clearest factors behind XRP’s recent weakness is a surge in whale-driven selling. Large holders have offloaded roughly 1.18 billion XRP in the last month, creating persistent supply pressure.
This level of activity usually reflects strategic exits rather than short-term reactions. As whales reduce their positions, available supply grows faster than market demand can absorb. As a result, XRP continues to struggle during recovery attempts.
The selling pressure intensified during today’s crypto market crash. Within just one hour, another $23 billion was wiped from the market, pushing 24-hour losses to $127 billion. Such abrupt liquidity shocks amplify downside moves in major assets.
Whale distribution during fast sell-offs typically accelerates downward movement. XRP quickly lost previously defended support zones, and every short-term recovery attempt was rejected—strengthening the supply side and fueling additional panic selling.
Historically, prolonged corrections often precede whale distribution phases. XRP is now showing this exact behavior, opening a clear path toward the $1.50 region.

XRP’s Structure Now Signals a Bearish Continuation Pattern
Technical signals on the daily chart show a completed head-and-shoulders formation, one of the most reliable bearish structures.
The left shoulder formed during an early recovery phase.The head emerged at the most recent peak before sellers quickly regained control.The right shoulder confirmed weakening buying pressure as bulls failed to reclaim previous highs.
The neckline near $1.95 acted as critical support. Once XRP broke below this level, selling pressure accelerated. The token now trades around $1.87, firmly below past consolidation areas, which have flipped into resistance.

RSI Confirms Bearish Momentum
The Relative Strength Index remains depressed at 33, far below the neutral zone. Instead of showing a strong rebound, RSI continues to hover in bearish territory—signaling that sellers maintain dominance.
Based on the measured move of the head-and-shoulders pattern, the projected downside target aligns with the $1.50 level.

Why $1.50 Is a Realistic Target — and What Could Change the Trend
To avoid a drop toward $1.50, XRP would need to:
recover key broken support zones,slow the pace of whale selling,see overall crypto sentiment stabilize during one of the sharpest pullbacks of the quarter.
Unless price decisively reclaims the zone around $1.95–$2.00, a continued move toward $1.50 remains the most likely scenario.

Conclusion
The crypto market is undergoing a sharp correction, pulling XRP lower.Whales have dumped 1.18 billion XRP, amplifying selling pressure.A completed head-and-shoulders formation signals a bearish continuation.RSI confirms weakening buyer momentum.Technical projections point toward a $1.50 downside target unless XRP reclaims major support.

#xrp , #Ripple , #CryptoMarket , #altcoins , #DigitalAssets

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“