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‍Hurun Report: 25% of Chinese HNWIs Plan to Increase Crypto Holdings A new study by the Hurun Research Institute indicates a significant shift among China's affluent investors. Approximately 25% of Chinese high-net-worth individuals (HNWIs) plan to expand their exposure to digital currencies within the next twelve months. Currently, digital currencies represent 2% of the total financial investments held by Chinese HNWIs. The report also highlights a growing interest in digital collectibles, with AI influencing this trend. These investors are increasingly diversifying their wealth through global crypto markets. The findings suggest a broadening acceptance of digital assets, potentially driving increased adoption of major cryptocurrencies and the digital art market in 2026.
‍Klarna to Utilize USDC via Coinbase Partnership for Institutional Funding Swedish fintech leader Klarna is integrating blockchain technology, partnering with Coinbase to access institutional funding through USDC stablecoins. This move diversifies capital sources and modernizes liquidity management. Klarna will leverage Coinbase's infrastructure to issue debt in stablecoins, connecting with digital asset investors. This initiative offers faster settlement and broader reach compared to traditional markets. "Stablecoin connects us to an entirely new class of institutional investors, and gives us the potential to diversify our funding sources," stated Klarna leadership. The stablecoin funding will complement consumer deposits, traditional debt, and commercial paper.
‍Major Token Unlocks Approaching: Over $43M in H, XPL, and SOON to be Released Late December The cryptocurrency market anticipates significant token unlock events in the final week of December 2025. Projects including Humanity (H), Plasma (XPL), and SOON are set to release substantial portions of their supply, valued at over $40 million combined. These unlocks are closely watched for their potential impact on market liquidity and price stability. Humanity Protocol (H) will lead with the release of approximately 105 million tokens on December 25th, valued at roughly $14.8 million (4.79% of circulating supply). Plasma (XPL) follows with 88.89 million tokens ($11.7 million, 4.5% of supply) also on December 25th, designated for ecosystem growth. SOON will unlock 21.88 million tokens on December 23rd ($8 million, 5.97% of supply), allocated for airdrops and liquidity. MBG By Multibank Group (MBG) also has a significant release scheduled for December 22nd. Investors are advised to monitor these events for potential sell-side pressure.
‍Fed Official Harker Signals Higher Neutral Rates, Citing Inflation Data Issues Federal Reserve official Christopher Harker suggested the neutral interest rate may be higher than anticipated. He also noted that November's Consumer Price Index (CPI) data could be misleading due to technical disruptions. Harker's assessment implies the Fed may maintain a restrictive stance longer. For digital assets like Bitcoin (BTC) and Ethereum (ETH), this could mean a more challenging environment. He stated that "the economy appears poised for continued strong growth, and the neutral rate may be higher than previously believed."
‍Senator Cynthia Lummis to Retire in 2026, Crypto Industry Reacts Senator Cynthia Lummis (R-Wyo.), a key advocate for Bitcoin and blockchain innovation, will not seek reelection in 2026. Her departure from Congress marks a significant moment for the digital asset community, which credits her with substantial legislative progress and regulatory clarity efforts. Lummis was instrumental in drafting the Responsible Financial Innovation Act and a critic of the SEC's "regulation-by-enforcement" approach. Industry leaders express gratitude for her advocacy, noting her impact on the current standing of digital assets. While her exit is a loss, focus remains on passing critical legislation like the US Clarity Act before her term ends.
‍Ethereum Foundation Prioritizes 128-bit Security Standard by 2026 The Ethereum Foundation is shifting its focus from transaction speed to long-term network security, aiming for a full implementation of a 128-bit security standard by 2026. This move addresses concerns that current high-throughput solutions, particularly zkEVMs, may rely on unverified mathematical assumptions, creating vulnerabilities for state data manipulation. The Foundation will provide tools for enhanced formal verification and cryptographic security assessments, ensuring all Layer 2 solutions meet the new standard. This strategy emphasizes the integrity of the ledger as Ethereum's primary value proposition, securing billions in assets against future cryptographic advancements.
‍New US Crypto Bill Proposes Stablecoin Tax Exemptions and Staking Deferrals Representatives Max Miller (R-OH) and Steven Horsford (D-NV) have introduced the Digital Asset PARITY Act, a bipartisan bill aiming to update the crypto tax framework. The proposed legislation includes a $200 de minimis exemption for capital gains on personal stablecoin transactions, intended to simplify everyday commerce with digital assets. Additionally, it seeks to allow a five-year tax deferral for staking and mining rewards, recognizing them at fair market value after the deferral period. This aims to provide clarity and reduce administrative burdens for investors and businesses in the digital asset ecosystem.
Matthew Kratter: Bitcoin Superior to Gold as Store of Value Market analyst Matthew Kratter advises against converting Bitcoin (BTC) to gold, despite gold's recent price surge. Kratter highlights Bitcoin's superior scarcity, portability, verifiability, and divisibility compared to gold. Gold faces challenges like supply shocks, uncertain future discoveries, and verification difficulties, unlike Bitcoin's fixed 21 million cap and blockchain verifiability. Kratter also points out gold's limitations in a digital economy, including high shipping and insurance costs, and counterparty risks associated with tokenized gold. He argues that Bitcoin, especially in self-custody, eliminates these risks. While the debate between BTC and gold advocates continues, Kratter believes Bitcoin's native digital utility and scarcity give it a decisive edge for future-looking investors.
‍Marshall Islands Trials Stellar Blockchain for UBI Payments The Republic of the Marshall Islands is piloting a universal basic income (UBI) program using the Stellar blockchain and a novel digital asset, USDM1. This initiative aims to overcome systemic banking shortages and provide financial access to its 40,000 citizens through a user-friendly digital wallet, Lomalo, developed by Crossmint. The USDM1 token is a yield-bearing sovereign bond, offering stability and benefits akin to a money market fund. This transition from cash-based systems and reliance on a single correspondent bank addresses significant geographic and financial isolation challenges, enhanced by Starlink satellite internet connectivity. The Stellar Development Fund supports the project with a multi-million dollar grant.
‍Blockchain and AI No-Code Tools Poised to Disrupt AWS Dominance The integration of blockchain and AI is driving a new era in application development, with AI-powered no-code tools set to challenge Amazon Web Services (AWS). These tools allow development through simple language prompts, reducing reliance on traditional coding and centralized infrastructure. Lomesh Dutta of the Dfinity Foundation highlights that this democratization of app creation, driven by AI, necessitates secure and tamper-resistant infrastructure. The Internet Computer Protocol (ICP) is positioned to provide this, addressing systemic risks associated with centralized cloud reliance in the Web3 sector.
‍$50 Million USDT Lost to Sophisticated Address Poisoning Attack A user has suffered one of the largest on-chain losses of 2025, losing nearly 50 million USDT due to a deceptive address poisoning attack. The victim copied a malicious wallet address from their transaction history, mistaking it for a legitimate recipient. Scammers use address poisoning by sending small amounts to a target, creating similar-looking addresses in the transaction history. Users often only check the first and last few characters, falling victim to the illusion. The attacker quickly swapped USDT for ETH, distributed the funds, and used Tornado Cash to obscure the trail. This incident highlights the ongoing need for meticulous address verification and user education in the face of evolving social engineering tactics.
‍Fundstrat Internal Report Signals 2026 Crypto Drawdown, Contrasting Tom Lee's Optimism An internal report attributed to Fundstrat Global Advisors suggests a "meaningful drawdown" in the first half of 2026, with specific price targets for Bitcoin ($60k-$65k), Ether ($1,800-$2,000), and Solana ($50-$75). This outlook sharply contrasts with managing partner Tom Lee's recent public bullishness on Bitcoin reaching $250,000 and Ether's "supercycle" potential. The authenticity of the internal document remains unverified.
‍Bybit Enhances Compliance and Expands RWA Integration Bybit is prioritizing regulatory compliance and expanding its Real World Asset (RWA) presence to attract institutional investors. Yoyee Wang, Head of Institutional & B2B Business, stated that adherence to legal frameworks is crucial for sustainable growth. The exchange is collaborating with traditional financial entities to integrate legacy systems with digital asset ecosystems, tokenizing traditional instruments and enhancing liquidity for RWAs. This strategic move aims to foster a more resilient financial ecosystem through institutional alignment and cooperation with regulators.
‍Shenyang Police Dismantle $2.2M Crypto-Linked Money Laundering Ring Authorities in Shenyang, China, have dismantled a cross-border illegal currency exchange operation utilizing Bitcoin and Tether. The network facilitated illicit foreign exchange and laundered funds for international drug traffickers. This action resulted from intelligence sharing between Chinese and U.S. law enforcement agencies, underscoring growing Sino-U.S. anti-money laundering cooperation against the misuse of blockchain technology. The operation, managed by suspects Tong Moumou and Chen Moumou, involved wash trading and virtual currency platforms to bypass regulations, moving over 16 million RMB (approx. $2.24M USD). Funds were converted to USDT and BTC, transferred overseas, and exchanged back to USD, with large cash deposits used to circumvent oversight. The suspects were apprehended attempting to flee the country.
‍Adam Back and Nic Carter Debate Bitcoin's Quantum Computing Risk Blockstream CEO Adam Back and Castle Island Ventures partner Nic Carter have publicly disagreed on the threat quantum computing poses to Bitcoin. Back criticized Carter's highlighting of quantum risks as "uninformed noise," suggesting the Bitcoin development community is quietly addressing the issue. Carter countered that many developers are in "total denial" and that governments are already preparing for post-quantum cryptography, indicating a tangible threat. Estimates for when quantum computers could compromise current cryptography vary significantly, with some experts predicting a need for upgrades within a decade, while others believe it is further off or less probable.
‍CryptoQuant CEO Questions Tom Lee's Consistent BTC Optimism Ki Young Ju, CEO of CryptoQuant, has questioned the persistent bullish outlook of analyst Tom Lee. Ju suggests Lee's 10:1 bullish-to-bearish ratio may stem from sell-side research incentives rather than solely neutral data. Reports indicate Lee's public forecasts of new all-time highs by January 2026 may differ from internal fund data suggesting potential corrections. This highlights the debate on institutional analyst objectivity and role influence on market sentiment.
‍Senator Cynthia Lummis to Retire in 2027, Citing Demands of Office Senator Cynthia Lummis, a key advocate for digital assets in the U.S. Congress, has announced she will not seek reelection when her term ends in January 2027. The Wyoming Republican cited the "difficult, exhausting" nature of legislative work as reasons for her departure, stating she is "a sprinter in a marathon." Lummis was instrumental in advancing legislation for digital asset market structure, aiming to clarify regulatory roles for the SEC and CFTC. She also co-sponsored the Lummis-Gillibrand Responsible Financial Innovation Act. Her retirement raises questions about future leadership in crypto policy.
‍Blockchain Association Opposes Stablecoin Yield Ban Extension The Blockchain Association, representing over 125 crypto groups, has formally opposed proposed regulatory changes that would ban third-party providers from offering rewards to stablecoin holders. In a letter to the US Senate Committee on Banking, the association argued that extending the yield prohibition under the GENIUS framework would stifle innovation and concentrate market power with traditional financial institutions. They contend that crypto-based rewards are comparable to incentives offered by credit card companies and banks, and that these opportunities help consumers combat inflation. The FDIC has also proposed allowing traditional banks to issue stablecoins, suggesting a move towards integrating them into the regulated banking system. The Blockchain Association disputes claims that stablecoin rewards threaten banks, emphasizing regulatory parity for crypto platforms.
‍Bitcoin Price Model Predicts $1.42 Million by 2035 A new analysis from CF Benchmarks, a Kraken subsidiary, suggests Bitcoin could reach $1.42 million by 2035. This projection is based on Bitcoin capturing 33% of the global gold market, yielding an estimated 30.1% annualized return. The report outlines a bull case of $2.95 million and a bear case of $637,000. Catalysts include regulatory clarity, liquidity, and institutional acceptance. Experts like Cathie Wood and Michael Saylor also have optimistic long-term forecasts for BTC.
‍Arthur Hayes: Fed's RMP Program is 'Hidden Money Printing' Arthur Hayes, co-founder of BitMEX, argues the Federal Reserve's new Reserve Management Purchases (RMP) program is a rebranded form of quantitative easing. Announced December 10, 2024, alongside a 25 basis point rate cut, the RMP involves purchasing ~$40B in short-term Treasuries. While the Fed states RMP aims to maintain ample reserves, Hayes believes it's a way to finance government spending and inject liquidity, potentially benefiting assets like Bitcoin. He warns such policies can devalue currency and hinder economic output. Bitcoin traded around $92,695 on the announcement day, but has since seen a correction. Market sentiment, via Polymarket, suggests a 77% probability of unchanged interest rates in January 2025. The future Fed leadership, with Jerome Powell's term ending May 2026, could also influence monetary policy.