‼️Why the Fed’s QT pause matters for risk assets?

The Federal Reserve has officially ended its quantitative tightening program, freezing its balance sheet at about $6.55 trillion. The move marks the end of a two-year effort to shrink the portfolio the Fed built up during the post-2008 and pandemic stimulus cycles.

The balance sheet tells the story clearly. After the 2008 crisis, large-scale asset purchases pushed it from roughly $1 trillion to more than $7.5 trillion. QT, which began in 2022, steadily pulled liquidity out of the system as the Fed let bonds roll off or sold them outright. That process shaved about $2.4 trillion from the peak. The recent flattening in the chart signals the tightening phase is over.

A pause in QT has direct implications for markets. When the balance sheet shrinks, liquidity dries up, rates stay elevated, and investors tend to retreat into safer assets. During the heavy QT period, both equities and crypto traded under pressure as risk appetite faded.

With QT now on hold, the picture flips:

✅

Liquidity stabilizes.

The Fed isn’t adding fresh liquidity, but it’s no longer draining it. Bank reserves remain healthy, credit conditions ease, and investors have more dry powder for risk assets.

✅

Rate pressure softens.

A stable balance sheet reduces upward pressure on yields, which generally supports valuations for stocks, crypto, and high-yield credit.

✅

Market sentiment turns.

Ending QT is widely read as a shift toward a friendlier policy stance. The last time the Fed paused QT, in 2019, markets rallied sharply. A similar pattern could play out again, especially in crypto, where liquidity flows matter most.

In the long run, a steady balance sheet isn’t the same as renewed easing, but it removes a major headwind. The risk is that inflation re-accelerates, which could force the Fed back into tightening mode. For now, though, the data show the downtrend in the Fed’s assets has stopped, and that alone gives risk-on markets room to breathe.

👌 @education

💎Governance vs Utility tokens: what separates them?

Governance tokens give holders a say in how a blockchain project evolves. They let users vote on protocol changes, treasury spending, or new features. In Uniswap, for example, UNI holders vote on adding liquidity pools, while MakerDAO’s MKR holders shape the parameters behind the DAI stablecoin. These tokens are essentially the mechanism for decentralized decision-making.

Utility tokens work differently. They don’t offer voting power; instead, they grant access to a product or service. BNB is used to pay transaction fees in the BNB Chain ecosystem, and tokens like AXS or SLP let players participate and earn rewards in games such as Axie Infinity. Their value depends on how useful the underlying service is.

Some tokens do both. ApeCoin, for instance, functions as a governance token and also unlocks content in the Yuga Labs ecosystem.

For investors, the distinction matters. Governance tokens represent long-term influence over a project, while utility tokens act as functional fuel. Understanding which is which helps clarify a token’s real value and its risks.

👌 @education

🇺🇸CFTC: First Officially Regulated Spot Crypto Trading Launches in the U.S.

According to an announcement by Caroline D. Pham, acting chair of the Commodity Futures Trading Commission (CFTC), spot Bitcoin and other cryptocurrencies will now be traded on exchanges registered with the CFTC.

The statement emphasized that the move aligns with the Trump administration’s pledge to make America the “crypto capital of the world” and usher in a new golden era of innovation. For investors, the regulated exchanges are intended to provide safer and more transparent markets compared to offshore platforms.

👌 @education

🕯Traders vs. Artificial Intelligence

The Aster team has launched an unusual tournament on its DEX platform: 70 selected traders will compete against 30 AI neural networks to test investment skills.

Each participant starts with $10,000 in capital.

The tournament runs from December 9–23, offering a unique chance to compare human strategy with AI algorithms in real‑time market conditions.

👌 @education

📉Yesterday: S&P 500 –1.1%, Bitcoin –2.4%

The drop was driven mainly by fears of an AI bubble bursting, declines in tech giants (such as Nvidia and Broadcom), and speculation that the Bank of Japan (BOJ) may raise interest rates.

The BOJ has not yet confirmed a hike, but most economists and markets expect a 0.25% increase (from 0.5% to 0.75%) at the December 18-19 meeting – which would mark the highest level since 1995. The announcement is typically made after the meeting, on December 19. More👇

Market data shows the expected move to 0.75% is already priced in – over 90% of economists and market watchers anticipate it. That means if the BOJ delivers as expected, stocks and crypto may avoid a sharp “dump,” since investors have already accounted for it.

However, if the BOJ surprises (by not raising, raising more, or signaling future hikes), unexpected reactions could follow – such as a stronger yen and intensified carry trade effects. Overall, the outlook remains speculative: markets look stable for now, but global factors (Fed policy, AI bubble fears) could still weigh in.

👌 @education

📱Tether Bids to Acquire Juventus FC

Tether, issuer of the USDT stablecoin, has submitted an official offer to buy Juventus Football Club.

CEO Paolo Ardoino announced plans to purchase Exor’s entire stake and invest €1 billion, aiming to restore the club to its former glory.

👌 @education

🕐Binance Founder CZ: Living Fully in Crypto

CZ says, “I don’t hold fiat. Very little cash.”

He explains that he lives entirely within the crypto ecosystem, relying on a card that automatically converts crypto into fiat at the point of purchase.

👌 @education

⚪️Ethereum: JPMorgan, the world’s largest bank, has launched its first tokenized money market fund on Ethereum, called MONY.

The bank seeded the fund with $100 million, and it opens to external investors today.

Money market funds invest in short-term, low-risk assets such as government bonds and corporate debt. By tokenizing the fund on Ethereum, JPMorgan is turning fund shares into on-chain tokens, enabling faster settlement, lower costs, and global access compared to traditional finance.

👌 @education

🇺🇸Trump’s AI and Crypto Advisor: Key Crypto Market Laws Are Closer Than Ever

According to Trump’s advisor, crucial legislation on the structure of the crypto market is nearing completion.

He stated that the work will be finalized in January. The laws are designed to regulate the crypto market and, once enacted, could eliminate up to 70% of manipulations.

👌 @education

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💚Beeple’s $69M NFT Now Worth Less Than $100

Four years ago, Beeple’s digital artwork “The First 5,000 Days” sold at Christie’s auction for $69 million.

Created by digital artist Mike Winkelmann (known as Beeple), the piece is composed of 5,000 individual images.

Today, its value has collapsed to under $100 – a stark illustration of how quickly and sharply the NFT market has fallen.

👌 @education

💱2025 Year-End Performance by Asset Class

Returns diverged sharply across asset classes in 2025. Traditional commodities and equity markets delivered positive results, while crypto markets declined.

Annual performance:

• Silver: +130%
• Gold: +65%
• Copper: +35%
• Nasdaq: +20%
• S&P 500: +16%
• Russell 2000: +13%
• Bitcoin: −6%
• Ethereum: −12%
• Altcoins: −42%

👌 @education

🕯Backtesting vs Real Trading – The Emotional Gap

Running a strategy in backtests and trading in live markets are fundamentally different mechanisms. Watching past charts and trading on demo accounts triggers almost zero psychological reaction.

🔫In reality, emotions heavily influence your decisions in live markets – sometimes forcing you to change course. Anyone can become a successful trader, provided they learn to control their emotions during the process.

👌 @education

🕐Binance Founder CZ said:

When bitcoin was ATH, have you ever thought, “I wish I bought bitcoins early”?

Guess what, those who bought early did not buy at ATH, they bought when there were fear, uncertainty and doubt.

👌 @education

🩸Why Are Altcoins Selling Off Heavily?

Many are asking why altcoins are being sold in large volumes and prices are dropping. It’s not due to unexpected bad news.

The main pressure comes from funding and leverage. In recent weeks, long positions in altcoins have grown excessively, funding rates spiked, and the market lost balance. In such conditions, even a small decline triggers a chain reaction: first over‑leveraged longs are closed, then liquidations and stop‑losses cascade, while spot buyers enter too late.

As a result, the move intensifies on its own, without external causes. Right now we’re seeing the market “clean itself” – open interest is shrinking, excess leverage is being flushed out, and spot demand is minimal.

This process feels unpleasant emotionally, but from a market perspective it’s normal and even healthy. Sustainable growth doesn’t begin when everyone is already long, but after these “reset” phases when the market catches its breath.

👌 @education

📆2025 in Crypto — Major Shifts and Events

The year 2025 was filled with significant changes and milestones in the crypto world. Here’s a chronological recap:

January:

🔥Donald Trump began his presidency and pardoned Ross Ulbricht (Silk Road founder), welcomed by the crypto community.
🔥His first executive order: Digital Assets Strategy, creation of a Strategic Bitcoin Reserve, rejection of CBDCs.
🔥Launch of the TRUMP memecoin sparked speculative debates.

February:

🔥

Bybit exchange hacked, $1.5B in ETH stolen – the largest hack in crypto history.

🔥

LIBRA token (linked to Argentina’s President Milei) collapsed 90% after rapid growth, costing investors $250M.

March:

🔥

Trump’s order formally established the U.S. Strategic Bitcoin Reserve (starting with 200,000 BTC), with plans to buy millions more.

🔥

Senate repealed IRS rules requiring DeFi user data collection.

April:

🔥

Trump announced “Liberation Day tariffs,” triggering a crypto market downturn and liquidity squeeze.

May:

🔥

Ethereum’s Petra upgrade improved efficiency and validator operations, elevating ETH to institutional scale.

June:

🔥

Circle (issuer of USDC) IPO’d on NYSE, raising $1.05B; shares surged 150%.

🔥

xStocks launched tokenized U.S. equities, quickly reaching $100M in assets.

🔥

GENIUS Act (stablecoin regulation) introduced in Senate.

July:

🔥

GENIUS Act signed into law by Trump, setting federal rules for stablecoins.

🔥

BonkFun challenged PumpFun, reshaping the memecoin market.

August:

🔥

SEC vs Ripple case concluded with a favorable ruling for XRP.

🔥

Klarna launched KlarnaUSD stablecoin.

September:

🔥

Aster perp DEX launched with CZ’s backing, growing rapidly.

🔥

SEC approved universal listing standards for crypto ETFs, accelerating altcoin ETFs (e.g., Solana, XRP).

October:

🔥

Bitcoin hit a record $126K before crashing, triggering $20B in liquidations — the largest deleveraging ever.

🔥

Aave DeFi TVL reached $50B.

🔥

Polymarket raised $2B.

🔥

Solana ETFs launched, attracting $750M inflows.

November:

🔥

xUSD stablecoin depegged (−57%), shaking DeFi liquidity.

🔥

Kalshi raised $1B.

🔥

Lighter perp DEX became market leader.

December:

🔥

Ethereum Fusaka upgrade reduced gas fees and boosted scalability.

🔥

Do Kwon (Terra/LUNA) sentenced to 15 years in prison.

🔥

HashKey (Hong Kong) IPO raised $206M.

🔥

Circle and Ripple obtained national banking licenses.

Overall Result:

2025 became the “institutional year” for crypto — regulation improved, BTC hit $126K, but hacks and manipulations remained frequent. Looking ahead, 2026 is expected to focus on oversight and security, with the Clarity Act laying the foundation.

👌 @education