📉 Unexplained Decline in Digital Asset Markets Amid Improving Macro Conditions

🧐 The digital asset markets have been experiencing a downturn, leaving analysts puzzled. Jeff Dorman, Co-Founder and Chief Investment Officer of Arca, stated that the current market behavior

makes little sense

given the improving macro indicators and the rising expectations for Federal Reserve rate cuts.

📊 In his December analysis titled "The Selling Nobody Can Explain," Dorman highlights the recent price weakness that contradicts historical patterns and market data. He notes that digital assets have declined in seven of the past eight weeks despite easing U.S. inflation readings and a high probability of a December rate cut. He points out the surprising divergence between equities—which ended November positively—and crypto markets that

fail to rally with good news.

🔗 Dorman suggests that a growing overlap between traditional finance (TradFi) and crypto may be contributing to the unexplained selling. He references investor Bill Ackman's comments about price correlations between crypto and unrelated assets like Fannie Mae and Freddie Mac. Dorman argues that institutional portfolio shifts outside the crypto sector may now be influencing flows in ways that are not easily observable.

💬 Other factors mentioned include concerns surrounding stablecoin issuer Tether. Dorman cites S&P’s recent downgrade and its September 2025 attestation showing 70% backing in cash and equivalents with the remainder in gold, bitcoin, and corporate loans. He asserts that liquidity fears are

misplaced

and that solvency concerns remain highly theoretical given the company’s profitability.

🤔 Perianne Boring, founder and CEO of The Digital Chamber, echoed the industry's unease, stating,

When even Jeff Dorman — one of the industry’s most experienced investors — says he can’t explain what’s happening, you know something is off.

She added that the situation

doesn’t look organic. It looks coordinated.

🔍 In response to Boring’s comments, Dorman noted that the reasons circulating around the downturn do not hold up under scrutiny. He stated,

MSTR isn’t selling, Tether isn’t insolvent, DATs aren’t selling, NVDA isn’t blowing up, the Fed isn’t turning hawkish, the tariff wars aren’t restarting, etc. I still have no idea why crypto is down.

📉 Despite attempts to rationalize some downward moves, Dorman concluded that the continuing weakness

has us scratching our heads.

This emphasizes that the analysis represents his interpretation of current market dynamics.

🆕 Coinbase Launches Instant Unstaking for U.S. Users

🚀 Coinbase, the cryptocurrency exchange, has introduced instant unstaking for its users in the United States. This new feature allows customers to access their previously locked crypto rewards more quickly, providing them with increased flexibility and liquidity as demand for yield-driven staking grows.

📢 The company announced on December 1 that the nationwide rollout of instant unstaking is underway. They emphasized that this enhancement offers a streamlined way for users to access their funds. Coinbase stated on social media,

Instant unstaking is live. Earn up to 15% APY in rewards on your crypto, and unstake instantly at anytime. Immediate liquidity, whenever you need it. Only on Coinbase.

👤 Brian Armstrong, CEO of Coinbase, explained the significance of this feature on X:

Staking is one of the most popular ways people passively earn on their crypto. But you have to wait to unstake your assets which can take weeks for some protocols. So our team built the solution: instant unstaking. It’s an optional way to bypass protocol wait times and access your staked assets immediately. Now it makes more sense than ever to stake on Coinbase.

His comments highlight the growing demand for yield options that minimize withdrawal delays.

💡 Armstrong also pointed out the broader benefits of this feature, claiming that

Coinbase is the best place to stake your crypto now. You have full flexibility of how to access your staked funds depending on your preferences.

He used Ethereum as an example, explaining that customers can allocate any amount of ETH and receive up to 2% in rewards. They have several options, including joining the standard protocol queue, converting to cbETH, or choosing the 1%-fee instant withdrawal route.

⚖️ While some critics argue that custodial staking may raise regulatory and operational concerns, proponents of crypto argue that faster liquidity, greater optionality, and improved market efficiency can support long-term adoption and enhance user participation across decentralized networks.

💰 Bitcoin's Struggles: MSTR vs. MARA in the Spotlight

📉 Bitcoin has fallen below $90K again, raising concerns for two of its major holders: Strategy (MSTR) and Mara Holdings (MARA). While both companies are well-known in the bitcoin community and hold significant amounts of BTC, Vaneck’s Head of Digital Assets Research, Matthew Sigel, suggests that Mara is in a more precarious position.

“MSTR and MARA are worth comparing because both are down ~50%+ in the last 6 weeks,”

Sigel wrote.

“MARA appears extremely cheap with unusually high short interest. But dig deeper and the picture changes quickly.”

💳 The key difference lies in their debt structures. Strategy shifted its focus from business intelligence software to accumulating bitcoin, becoming the largest corporate holder of the cryptocurrency. It issued convertible debt to finance its bitcoin purchases, a strategy that many other companies, including Mara, later adopted.

💸 However, Mara has issued approximately $3.3 billion in convertible bonds. This was not a concern when bitcoin prices were rising, but with bitcoin now at $88K, things are becoming precarious. Despite a 50% drop in share price, Mara's enterprise value has increased due to its debt obligations. This has inflated Mara’s mNAV, a metric that compares enterprise value to bitcoin holdings, indicating that investors are paying more for Mara stock than its BTC value justifies.

“MARA only screens inexpensive if you ignore its $3.3B face value of convertible debt,”

Sigel says.

“It’s trading at a premium once debt is included.”

📊 While Strategy is also trading at a premium, it is significantly lower than Mara's. Bitcoin's recent volatility has put both firms in a tough spot, but Mara's complicated debt structure obscures the relationship between its stock price and bitcoin value. Despite concerns about Strategy's finances, Sigel warns that Mara's situation is more alarming.

“MARA is up 30% from the lows and running into resistance so I sold some today and added to MSTR,”

Sigel said.

🔍 In summary, while both MSTR and MARA face challenges due to bitcoin's price drop, MARA's high level of convertible debt makes it a riskier investment. Investors should consider these factors when evaluating their exposure to these companies in the current market conditions.

💰 Canada Revenue Agency Recovers $72 Million from Crypto Audits Amid High Non-Compliance Rates

📊 The Canada Revenue Agency (CRA) has successfully recovered over $72 million USD in unpaid taxes from cryptocurrency audits in the past three years. However, the agency has not filed any criminal charges since 2020, indicating significant challenges in enforcing tax compliance in the cryptocurrency sector.

👥 A report by The Canadian Press reveals that the CRA's 35 dedicated "cryptoasset auditors" are currently handling more than 230 cases. The agency estimates that up to 40% of taxpayers using crypto platforms either fail to file their returns or are at a high risk of non-compliance. This situation is exacerbated by the borderless and pseudonymous nature of some cryptocurrencies, which complicates the government's efforts to combat tax evasion.

📜 Predrag Mizdrak, a senior CRA auditor, acknowledged the difficulties in identifying crypto users and assessing their compliance with income tax reporting obligations. He noted that approximately 15% of Canadian crypto users have not filed their taxes at all, and 30% of those who do file are considered high-risk for non-compliance. Mizdrak stated,

The use of cryptoassets greatly expanded during the COVID-19 pandemic. This has created additional compliance challenges for the CRA due to the built-in anonymity within the crypto space, the volume of transactions, and the ease of setting up accounts on many cryptoasset platforms across borders.

⚖️ To address these challenges, the CRA obtained a Federal Court order to reveal the identities of clients of Dapper Labs, a Vancouver-based non-fungible token (NFT) pioneer. This order, known as an “unnamed persons requirement,” mandates the disclosure of customer data to assist the CRA in verifying tax compliance. Initially seeking information on Dapper’s top 18,000 users, the CRA eventually narrowed the request to 2,500 users after negotiations with the company’s lawyers.

🔍 Despite recovering millions through civil audits, the absence of criminal charges remains a significant issue. The CRA has initiated five criminal investigations involving digital assets since 2020, with four still ongoing as of March 2025. The agency attributed the delays to the complexity of digital asset cases, stating,

The CRA’s criminal investigations are complex and often require years to complete. The length of time required to investigate will be dependent on the complexity, number of individuals involved, availability of evidence, international requests for assistance, and level of co-operation of witnesses with a view to determine whether criminal charges are warranted.

🌍 Ripple's Acquisition of Rail: A Game Changer for Global B2B Payments

🚀 Ripple has successfully finalized its acquisition of Rail, positioning Ripple Payments as a comprehensive stablecoin platform aimed at enhancing global B2B money transfers. This strategic move is set to broaden enterprise adoption and improve the real-world application of digital and fiat currencies.

Deal closed: Rail. With this acquisition, Ripple Payments is the market’s most comprehensive end-to-end stablecoin solution.

🔗 The integration of Rail into Ripple's payment system introduces virtual accounts and stablecoin-based settlements. This addition streamlines corporate collections, treasury management, and cross-border transactions by incorporating automated back-office functions and intelligent payout routing. Businesses can now conduct transactions without the need to hold stablecoins or maintain specialized crypto bank accounts, all through Ripple’s unified platform.

📈 Looking forward, Ripple anticipates that this integration will revolutionize how enterprises manage global money movement. The company stated,

The company’s $200M acquisition of Rail will make Ripple Payments the market’s most comprehensive end-to-end stablecoin payments solution, compliantly connecting the best of fiat and digital assets so that businesses can move money faster, save costs, and build to grow.

🌐 By merging virtual accounts, stablecoin settlements, and automated treasury workflows, Ripple enables businesses to operate through a single, compliant system with global reach and continuous settlement. This acquisition is expected to significantly enhance Ripple’s stablecoin utility in high-volume B2B payments and is seen as a positive development for RLUSD, an XRPL-native asset. Increased adoption of RLUSD is likely to boost transaction activity on the network and support XRP’s role in liquidity provision and On-Demand Liquidity settlement.

💡 In summary, Ripple's $200M acquisition of Rail is a pivotal step in expanding its stablecoin payment capabilities. It strengthens the potential for enterprise adoption and long-term revenue growth while providing a competitive edge in the global payments landscape.

📈 Bitnomial Secures CFTC Approval for Regulated Prediction Markets

🏛 Bitnomial Inc., a Chicago-based derivatives exchange, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) to clear fully collateralized swaps. This milestone, announced on December 12, enables the company to offer regulated prediction markets alongside its existing suite of derivatives.

🔗 With this authorization, Bitnomial Clearinghouse LLC becomes the only full-service U.S. exchange that provides a comprehensive range of products—including perpetuals, futures, options, leveraged spot, and now prediction markets—under a single regulatory framework. The company emphasized that this approval allows “partners [to] gain access to collateral mobility across USD and crypto,” utilizing the same margin and settlement infrastructure that supports its derivatives complex.

🗣 Michael Dunn, President of Bitnomial Exchange and Clearinghouse, stated,

Prediction markets represent the next frontier for regulated derivatives, and no other U.S. venue offers this combination of products with unified trading, clearing, and margin.

He noted that the derivatives clearing organization approval enables Bitnomial to serve both its own exchange and external partners while building a clearing network to enhance the broader prediction market ecosystem.

🌐 Bitnomial's prediction market will initially focus on crypto and economic events, complementing its existing Bitcoin and Crypto Complex offerings. This focus allows participants to gain exposure to outcomes related to token price movements and macroeconomic indicators with integrated risk management across products.

🚀 DTCC's Groundbreaking Move: Tokenizing U.S. Treasury Securities

🌐 The Depository Trust & Clearing Corporation (DTCC) is set to revolutionize the financial landscape by tokenizing U.S. Treasury securities through a partnership with Digital Asset Holdings and the Canton Network. This initiative marks a significant shift towards blockchain integration in core market infrastructure, enabling faster settlements and new liquidity avenues.

📅 On December 17, DTCC announced its collaboration following the receipt of a No-Action Letter from the U.S. Securities and Exchange Commission (SEC). This letter permits DTCC to tokenize real-world assets it custodies, positioning this project as a key step in making these assets available on-chain. The announcement highlighted that

for the first time, a subset of U.S. Treasury securities custodied at DTC will be minted on the Canton Network.

🔍 The organizations aim to develop a minimum viable product by the first half of 2026, with plans to expand based on client interest. DTCC will utilize its ComposerX platform for issuance and lifecycle management while ensuring alignment with existing processes.

💡 This partnership emphasizes tokenization as a practical enhancement to market infrastructure rather than a mere pilot project. Yuval Rooz, Co-Founder and CEO of Digital Asset, described it as a foundation for interoperable financial ecosystems that can unlock new liquidity and operational improvements. Brian Steele, DTCC's Managing Director, stated that the goal is to improve liquidity and market transparency while maintaining regulatory compliance.

📈 The Canton Network emphasized the upcoming capability to

exchange tokenized USTs in near-real-time with stablecoins and other digital assets

, which will enhance global collateral mobility and settlement efficiency. DTCC anticipates that adopting tokenized securities could lead to significant operational efficiencies for market participants, including major market makers and hedge funds.

🤝 Additionally, DTCC will play a leadership role in the Canton Network’s decentralized governance as co-chair of the Canton Foundation alongside Euroclear. This reinforces the movement towards scalable, market-ready infrastructure for regulated tokenization of U.S. Treasurys.

💰 XRP Approaches a Historic Shift with XRPL Lending Protocol

🚀 XRP is on the brink of a significant transformation as Ripple unveils the XRPL Lending Protocol. This groundbreaking system introduces protocol-level, fixed-rate institutional credit, potentially revolutionizing global onchain markets by enhancing liquidity and providing new balance-sheet flexibility.

📅 On December 19, Ripple announced the upcoming launch of a new version of the XRPL Lending Protocol, which is designed specifically for institutional adoption. Ed Hennis, a Senior Staff Software Engineer at Ripple, emphasized that this protocol will integrate fixed-term, fixed-rate credit directly into the XRP Ledger.

For the first time, enterprises gain access to predictable, onchain lending designed for institutional use

he explained. Hennis noted that this system eliminates the need for application-layer smart contracts by embedding lending mechanics directly into the XRPL through the XLS-66d amendment.

🔒 Each loan will be secured within its own Single Asset Vault (SAV), which isolates risk to that specific credit facility. This structure allows the protocol to enforce loan terms and manage risk effectively. Hennis described this as creating an institutional-grade framework with onchain transparency.

🌍 The development of the XRPL Lending Protocol is framed as a breakthrough for onchain finance at a global scale. Hennis pointed out immediate use cases such as market makers borrowing XRP/RLUSD for inventory and arbitrage. This enables firms to deploy liquidity across venues without tying up their balance sheets.

Custodians, exchanges, and large XRP holders can lend XRP into isolated, underwritten credit facilities to create the first scalable yield venue for XRP’s $115B+ market cap

he noted. He also highlighted that XRP’s $124B market cap can now be utilized in institutional credit facilities to generate real yield.

🔜 Looking ahead, Hennis mentioned that the relevant amendments are expected to enter validator voting in late January. This marks a significant step towards activating protocol-native credit markets on the XRPL. He concluded with a bold statement about the implications of this development:

This is the first time that protocol-native credit markets have become possible on a global chain. And it positions the XRPL as a settlement and credit infrastructure for real institutions

While everyone talks about AI, $OPEN is showing strength on the chart.

Up ~15% on the MarbleX (Netmarble) investment news that's a clear signal. Current levels look like a strong zone to hold for the next potential leg up.

Strong fundamentals + price momentum = a compelling setup. On the watchlist.

Check it out:

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💰 Matador Technologies Secures $58.4M for Bitcoin Strategy

🚀 Matador Technologies Inc., a publicly traded company in the bitcoin (BTC) ecosystem, has received final approval from the Ontario Securities Commission for a $58.4 million (CAD $80 million) short-form base shelf prospectus. This approval allows the company to distribute common shares, warrants, and other units over the next 25 months, providing flexibility for capital raises when market conditions are favorable.

💪 The new facility complements Matador's recently closed $100 million USD secured convertible note with ATW Partners, giving the company access to over $158 million USD in potential liquidity. This forms the backbone of Matador's aggressive Bitcoin accumulation strategy. Between December 2024 and late 2025, Matador increased its BTC holdings by approximately 767%, totaling 175 BTC. The company aims to leverage the new capital facility to reach a target of 1,000 BTC by the end of 2026.

🗣

Obtaining the receipt for our $58.4 million USD base shelf prospectus is a critical step in maturing our capital structure

said Deven Soni, CEO of Matador Technologies. He emphasized that this approval, along with existing partnerships and credit facilities, provides the speed and flexibility to access capital when advantageous.

📈 Mark Moss, Chief Visionary Officer, added:

Bitcoin is a volatile asset, and navigating its cycles requires a long-term view and the ability to deploy capital in measured steps

. He noted that the prospectus positions Matador to act decisively in growing its treasury.

💸 Matador plans to allocate capital primarily towards bitcoin purchases, while retaining flexibility for general corporate purposes depending on market conditions. This “bitcoin-first” approach aligns the company with other institutional players who view bitcoin as a reserve asset to hedge against currency debasement and enhance long-term shareholder value.

📈 Gold and Silver Surge: A Warning Sign for the Economy?

📉 The recent surge in gold and silver prices has raised alarms among financial analysts, with some predicting a potential recession. Gold has reached a staggering $4,540 per ounce, while silver has surpassed $76 on Comex, and prices in Shanghai are even higher, exceeding $80 per ounce.

📊 Analysts point to indicators suggesting further growth in metal prices. Peter Schiff, a known gold advocate, highlighted the stagnation of mining stocks compared to rising metal prices as a sign that the rally may continue. He stated,

When the bulls don’t believe the rally, it has a long way to go.

⚠️ However, there are also serious concerns about a potential physical delivery default. Refiners are at capacity for converting large 1,000-ounce bars into smaller 1-kilogram ingots for the Shanghai market. Despite this, Silvertrade asserts that industrial users will still be able to take delivery of silver.

😟 Michael Gayed, an ETF portfolio manager, expressed that the current situation is unusual and should alarm investors. Many experts agree that the shift towards precious metals could signal an impending recession and reflects a growing distrust in the financial system. Strategist NoLimit compared this trend to previous crises such as the dot-com bubble and the 2007 global financial crisis.

🔮 Jim Rickards has made bold predictions that gold could reach $10,000 and silver could rise to $200 by 2026. As the bull rally continues, the implications for the broader economy remain uncertain.

🇨🇳 China's Digital Yuan: A Step Towards Parity with Traditional Bank Deposits

💰 In a significant move to enhance the adoption of the digital yuan, the Central Bank of China has announced that commercial banks will be allowed to pay interest on digital yuan deposits. This initiative is set to take effect on January 1st and is part of the Chinese Communist Party’s 15th Five-Year Plan for Economic and Social Development, which emphasizes the steady development of the digital yuan.

📜 Lu Lei, Vice Governor of the Bank of China, stated that

Banking institutions will calculate and pay interest on the balance of customers’ real-name digital RMB wallets

and will adhere to the self-discipline agreement on deposit interest rate pricing. He also mentioned that banks will be able to manage the asset-liability of digital wallet balances, ensuring that digital currency deposits receive the same protections as traditional deposits.

📉 Despite the digital yuan's previous successes, gaining a foothold in the competitive Chinese market remains challenging due to existing preferred payment alternatives. This new measure aims to stimulate the use of the digital yuan by offering incentives similar to those of bank deposits. However, it is important to note that deposit interest rates in China are currently very low, having dropped to just 0.05% according to Bloomberg, which may limit the impact of this initiative.

🔢 Since November 2025, the digital yuan has processed over 3.48 billion transactions, with nearly 17 trillion yuan exchanged in these operations. This demonstrates a level of activity that the government hopes to build upon with the introduction of interest payments on digital deposits.

🪙 Galaxy Research's 2026 Outlook: Bitcoin's Evolution and Institutional Adoption

📈 Galaxy Research has released its comprehensive outlook for 2026, emphasizing Bitcoin's evolution beyond price cycles and its increasing alignment with gold's adoption curve. The report highlights the growing institutional access to Bitcoin and the strengthening demand for long-term monetary hedges, projecting a trajectory towards $250,000.

🔍 The research indicates that digital asset markets are entering a new phase characterized by institutional participation, regulatory clarity, and technological convergence. It stresses the importance of long-term adoption over short-term price movements. The team noted,

While 2025 may end with prices in the red, the year still pulled in real institutional adoption and set the groundwork for 2026’s next phase of real activation.

💡 Looking ahead, Galaxy anticipates that stablecoins will surpass traditional payment rails, tokenized assets will enter mainstream markets, and corporate layer-1 blockchains will transition from pilot programs to actual settlements. The report also predicts that public chains will reevaluate their value capture strategies, decentralized finance (DeFi) and prediction markets will continue to grow, and AI-driven payments will finally be implemented on-chain.

📊 Alex Thorn, Head of Firmwide Research, provided a long-term perspective on Bitcoin, suggesting that 2026 might be a relatively quiet year for the asset. He stated that regardless of whether Bitcoin ends the year at $70,000 or $150,000,

our bullish outlook (over longer time periods) is only growing stronger.

Thorn emphasized the increasing institutional access and the search for non-dollar hedge assets, stating,

It’s very possible that Bitcoin follows gold to become widely adopted as a monetary debasement hedge within the next two years … BTC will hit $250k by year-end 2027.

🌐 The report also projected continued growth for Solana's blockchain infrastructure, predicting a surge in the total market cap of Internet Capital Markets on Solana to $2 billion. Regulatory expectations were also addressed, with Galaxy forecasting that the SEC will provide some form of exemptive relief for the use of tokenized securities in DeFi under its ‘innovation exemption’ program.

💼 In terms of capital markets and corporate balance sheets, Galaxy Research predicted that over 15 crypto companies will IPO or uplist in the U.S. However, it also cautioned that not all balance-sheet strategies will be sustainable, warning that

five or more digital asset treasury companies (DATs) will be forced to sell assets, be acquired, or shut down completely.