Since 2019, Bitcoin has never risen above the middle of the long-term channel without the launch of a QE (quantitative easing) program, which floods the market with liquidity and pushes risky assets up.
QE has always been the fuel that accelerated the trend. And right now, that driver simply isn't there; the market is standing still, waiting for a real bullish catalyst.
❗️Until liquidity returns, $BTC will continue to move cautiously and there will be no aggressive growth.
💵 Visually: the difference in assets between the rich and the poor
People with capital from $10k to $100k mostly own illiquid assets (personal apartment and car). Beyond that, the focus shifts to savings, business, and investments.
Those who have crossed the $1 million threshold hold about 50% in liquid assets, while billionaires invest over 70% of their funds in business and stocks.
📉 Here’s why the crypto market is going down today
The crypto market is going down today, with Bitcoin falling by 1.25% in the last 24 hours, and XRP, Solana, Dogecoin, and Hyperliquid (HYPE) falling by over 3%. The market capitalization of all tokens dropped by 1.36% to $3.15 trillion. Here are some of the reasons why the crypto market crash is happening today.
🔸 Crypto market is going down as investors sell the news
One key reason why the crypto market is going down is that there was some important news that pushed it higher. Wl
The most important news was that Vanguard, a top company with over 11 trillion in assets and 50 million customers, will start off offering crypto ETFs, a major change for the company. It has already started offering some of these funds.
The other notable news was that Donald Trump hinted that he would nominate Kevin Hassett to be the next Federal Reserve Chair, replacing Jerome Powell.
Hassett is viewed positively by crypto traders because he used to serve as a advisor. He also favors low interest rates and is more aligned with Donald Trump on key issues.
Meanwhile, the Securities and Exchange Commission (SEC) approved the spot Chainlink ETF, which has attracted millions of dollars in inflows in the past few days.
Additionally, Charles Schwab announced that it would start offering crypto trading services on its platform in January, a notable thing for a company with over $12 trillion in assets.
All these news events helped to push crypto prices higher this week. Whenever this happens, traders often sell the news as they wait for an additional catalyst.
🔸 Futures activity is falling
The other main reason why the crypto market is going down is that activity in the futures market has started to deteriorate in the past few days.
One way to look at this is the futures open interest, which is an important metric that looks at open positions in the futures market. These positions can be with call or put options.
Data shows that the futures open interest has dropped by 1.87% to $132 billion.
The Fed's preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. Yet volatility indices show no signs of major turbulence.
The core PCE likely rose 2.9% year-on-year in September, heading in the wrong direction from the Fed's goal of a 2% annual rate, according to FactSet. If the actual figure matches estimates, it would mark 55 straight months of inflation above the Fed's 2% target. The sticky inflation would strengthen the Fed hawks, who are in favor of slower rate cuts.
Still, as of writing, Volmex's annualized one-day bitcoin implied volatility index , BVIV, hovered in familiar ranges around 36%. That equates to a 24-hour expected price swing of 1.88%, which is nothing out of ordinary.
Low volatility expectations likely stem from anticipated Fed rate cuts next week regardless of PCE data. CME's FedWatch tool prices a 25 basis point cut on Dec. 10 as a done deal.
A softer-than-expected report could send the 10-year Treasury yield below 4%, helping BTC break out its two-day trading range of $92,000-$94,000.
"A softer labor read and contained PCE would reinforce the easing narrative supporting crypto’s rebound, while any upside surprise may keep markets range-bound until the Fed clarifies its path," Iliya Kalchev, Nexo Dispatch analyst, said in an email.
Analysts at ING, however, have warned that any decline in the benchmark yield could be short-lived.
The data could have similar impact on alternative cryptocurrencies.
Speaking of ether, it's one-day implied volatility index was 57.23%, implying a 24-hour price swing of 3%, slightly higher than bitcoin. Meanwhile, SOL's volatility index signals a 3.86% price move, with XRP at 4.3%.
🤔 How High Will #Cardano Price Go Ahead of Midnight Launch
Cardano’s ADA is now trading near $0.44 as the network prepares for its biggest update of the year, the Midnight sidechain launch on December 8. With only 3 days left before this major upgrade goes live, traders are once again asking the big question, how high can Cardano rise next?
🔸 Big Week Ahead as Midnight Goes Live 8th Dec
December 8 marks the official launch of Midnight, Cardano’s first zero-knowledge sidechain. The new system aims to bring stronger privacy tools, better scalability, and more flexibility for developers.
Earlier this week, the Midnight Foundation also rolled out NIGHT, the network’s first native token, another step that has added more energy to the Cardano ecosystem.
Cardano founder Charles Hoskinson believes Midnight will unlock a new era for the network. According to him, this upgrade can help strengthen Cardano’s stablecoin ecosystem and give DeFi builders more freedom to build advanced tools.
With the token distribution, listings, and liquidity support scheduled on the same day.
Lately, Cardano’s native token ADA has been moving in a steady downward trend, dropping nearly 20% in just one month before finally finding support near $0.37.
After hitting this level, ADA bounced back, gaining more than 13% as hype around the upcoming Midnight launch started to build.
While $ADA is still weaker than other major tokens like Solana and BNB, some analysts believe that buyers are slowly stepping back in, hinting that momentum may be turning in Cardano’s favor.
🔸 How High Will Cardano Price Go?
Despite weeks of bearish pressure, top chart analyst Ali Martinez noted that Cardano has finally flashed a SuperTrend “buy” signal, its first since the long downtrend began.
On the ADA’s 12-hour chart, Cardano has also cleared a resistance zone it struggled with for weeks. Its move back above the $0.41–$0.43 range shows that buyers are responding faster and defending key levels more strongly than before.
“Bitcoin is the foundation of economic markets — its trading power exceeds Google, Microsoft, and even the Navy’s spending power.”
“This is not rhetorical — you have advocates in the cabinet, even the head of the FBI; a president supporting this asset class, and that’s a big deal.”
A clear message: Bitcoin’s role in the world economy is only just beginning.
A popular crypto trader believes that XRP can easily soar to a new all-time high, providing historical context for this predicted growth.
Don's statement about the imminent rise to new all-time highs is confirmed by a bullish formation on the daily XRP/USD chart. The overall chart shows accumulation in a descending channel, which is historically a bullish factor for the token.
XRP entered this corridor after the yearly high of $3.67 in July and has since been forming lower highs and lows.
If you pay attention to the correlation of Bitcoin with global liquidity, it could very well be worth around $165k.
Basically, you recently had the opportunity to buy Bitcoin for $80k and potentially have 2x profits in the future. Could this have been the last chance? 😉
🔴 The Fed conducted a large one-day repo operation: banks received $13.5 billion secured by collateral. This is the second largest liquidity injection since 2020.
🔴 A repo is not money printing nor a permanent balance sheet expansion. It is a technical one-day loan that is repaid the next day.
🔴 But the very fact indicates stress in bank funding, and the Fed is easing it with liquidity.
🔴 In recent days, the regulator has injected a total of $125 billion, which already looks like an early shift from tight QT to a softer regime.