Bitcoin experienced a tumultuous week, fluctuating between $86,000 and $92,000. Despite this volatility, a significant uptick in on-chain activity has some analysts suggesting that the current bull cycle might not be over. The movement of older coins and large-scale capital rotations are reminiscent of patterns observed before major market expansions. Nonetheless, price actions have been erratic, with BTC dipping just below $89,000, influenced by weak global risk sentiment, mixed macroeconomic data, and persistent regulatory scrutiny.
The broader cryptocurrency market saw increased volatility as regulators issued fresh warnings. Altcoins tested critical support levels, while the recent Ethereum Fusaka upgrade provided a notable speed enhancement. Spot markets, ETF inflows, and liquidity dynamics have become crucial focal points for short-term market predictions. The week was packed with significant events, and numerous charts are currently at pivotal positions.
Bitcoin”s Decline Linked to Global Economic Factors
Bitcoin dropped approximately 5% to below $87,000 as investors shifted focus away from riskier assets, prompted by disappointing economic data emerging from Japan and China, coupled with overall declines in the stock market. This downturn was accelerated by profit-taking, derivative liquidations, and a generally cautious market sentiment. Analysts are closely monitoring key price levels, indicating that $80,000 could serve as a support point, while $100,000 remains a recovery target, with ETF flows and liquidity playing a critical role in determining the market”s trajectory.
Italy Sets Deadline for Crypto Platforms to Comply with MiCAR
The regulatory landscape in Europe is shifting, with Italy”s regulator, CONSOB, issuing a warning to cryptocurrency platforms. They must apply for MiCAR authorization by December 30, 2025, or face operational suspension in the country. Firms that fail to seek approval will be required to close their accounts and return customer funds. For those that apply, a temporary operating period is permitted until a decision is made or until June 30, 2026. This initiative underscores the EU”s commitment to establishing fully regulated cryptocurrency markets after recent failures.
XRP Tests Support Levels Amid Market Sentiment Shifts
XRP has seen a decline to approximately $2.08, representing a 31% drop over the past two months. Despite this downturn, sentiment data from Santiment indicates that fear levels have reached points that previously triggered short-term rallies. The token is currently testing support near $2.02, with resistance levels identified between $2.13 and $2.25. Although technical indicators remain weak, ETF inflows continue to grow, accumulating nearly $900 million in assets under management. A breach below $2.02 could lead to further downside pressure.
CFTC Approves Spot Crypto Trading on U.S. Exchanges
In a landmark decision, the CFTC has authorized spot cryptocurrency trading on federally regulated futures exchanges for the first time. This approval allows assets like Bitcoin and Ethereum to be traded under established market rules, aiming to transition trading activities from offshore platforms to supervised U.S. venues. Major exchanges such as CME and Cboe are expected to introduce spot products, clarifying the responsibilities of the CFTC and the SEC in the evolving landscape.
Other notable developments include Polygon“s POL token dropping to around $0.13 despite a surge in network activity, as well as significant governance changes at Binance with the appointment of co-CEO Yi He. Meanwhile, Franklin Templeton expanded its EZPZ Crypto Index ETF to include additional tokens, enhancing investor access to a broader range of crypto assets.
The market remains watchful as MicroStrategy faces a rebound test following a 40% drop in November. With the company holding 649,870 BTC, its performance is closely tied to Bitcoin”s price movements. The upcoming Federal Reserve decision on December 15 could also influence market dynamics, with potential implications for both Bitcoin and MicroStrategy.
