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Crypto Pulls Back as the Nasdaq Drops over 1.5% on the day

By
Paul Ugbede Godwin
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0
NASDAQ

The cryptocurrency market experienced a notable pullback, aligning with broader risk-off sentiment in equities, particularly in tech-heavy indices.

Bitcoin (BTC) dipped below $86,000 at points during the session hitting weekly lows around $85,000–$86,000, before recovering slightly to trade in the $86,000–$88,000 range. It was down roughly 0.3%–1% on the day and about 8% for the week.

Major altcoins fared worse: Ethereum (ETH) fell ~3%–4%, Solana (SOL) and XRP each dropped ~12% weekly. The total crypto market cap declined ~1.5%–1.9% in the last 24 hours, extending a 7-day slide to over 7%.

This move mirrored weakness in U.S. stocks, where the Nasdaq Composite fell around 1.5%–1.9% intraday, tech stocks led the decline amid ongoing AI valuation concerns and year-end positioning. Crypto’s high correlation with Nasdaq prevented any meaningful decoupling, despite occasional hopes for independence.

Analysts point to: Year-end profit-taking and tax-loss harvesting. Elevated liquidations in derivatives ~$370M total, including $153M in BTC. Broader macro uncertainty mixed U.S. data, Fed signals. Extreme fear in sentiment gauges (Fear & Greed Index around 22–29).

Some see oversold conditions as potential “max pain” bottoms, with BTC stuck in an $86K–$92K range. Meanwhile, precious metals bucked the trend—silver hit new records, gold neared all-time highs—highlighting a rotation into traditional safe havens.

Overall, this feels like a classic late-year risk reset rather than the start of a deeper bear market, but volatility remains high heading into 2026. The ongoing pullback in crypto, synchronized with the Nasdaq’s ~1.5–2% drop and broader tech/AI stock weakness on highlights several immediate effects.

Leverage unwinds continue, with hundreds of millions in positions liquidated. This amplifies downside moves, as seen in BTC dipping toward $85K–$86K intraday before partial recovery to ~$86K–$88K. Altcoins, ETH down ~4% suffer more due to higher beta.

Crypto’s strong positive correlation with Nasdaq often 0.5–0.7+ in 2025 means it acts like a “high-beta tech stock.” AI valuation concerns, year-end positioning, and macro uncertainty e.g., Fed signals on rates drag both markets. This prevents crypto from decoupling as a safe haven.

Fear & Greed Index in “Extreme Fear” (20s), signaling potential capitulation. Oversold conditions could lead to short-term bounces if support holds (e.g., BTC above $85K). This appears as a healthy leverage reset rather than the start of a prolonged bear market, based on analyst consensus.

Reduced volatility, BTC now less volatile than Nvidia in some metrics and deleveraging clear out speculation, building a stronger foundation. Institutional inflows via ETFs remain supportive long-term, though short-term outflows add pressure.

Consolidation around current levels around $85K–$92K for BTC, with dips bought by long-term holders. Regulatory clarity and ETF demand could fuel recovery. Elevated volatility persists, with alternating rallies/pullbacks amid shifting narratives.

If Nasdaq weakness deepens like AI bubble burst or tighter Fed policy, BTC could test $80K or lower, though historical patterns suggest rebounds after similar mid-cycle dips. Traditional safe havens like gold/silver hitting highs outperform, indicating flight from risk assets like crypto/tech.

BTC increasingly trades with equities, especially during risk-off— negative asymmetry: falls harder than stocks drop. This reduces its appeal as an independent hedge but boosts accessibility for traditional investors. Despite 2025’s rollercoaster— ATH ~$126K in October, now -30%, supply dynamics, institutional adoption, and patterns suggest potential for new highs in 2026 some forecasts >$140K.

The pullback resembles prior cycles’ corrections before expansions. This feels like a classic year-end risk reset amid overleveraged positioning—painful short-term but potentially constructive for a more mature market heading into 2026. Monitor Nasdaq/tech for cues, as crypto’s fate remains tied to broader risk appetite.

Impact of the Bank of England’s 0.25% Rate Cut to 3.75% on Mortgage Rates

By
Paul Ugbede Godwin
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0

The Bank of England’s Monetary Policy Committee (MPC) announced a 25 basis point cut to the Bank Rate, lowering it from 4% to 3.75%. This was the fourth rate cut of 2025 and the sixth since mid-2024.

Narrowly 5-4 in favor of the cut (four members preferred to hold at 4%). Governor Andrew Bailey — Switched to support the reduction after voting to hold in November.

A sharper-than-expected drop in UK inflation to 3.2% in November from 3.6% in October, stagnant economic growth forecast at 0% for Q4 2025, and a weakening labor market.

The BoE signaled a gradual path lower but cautioned that future decisions could be “closer calls,” with lingering concerns about services inflation and potential upside risks.

This provides a pre-Christmas boost for mortgage borrowers especially those on tracker rates and the broader economy, though savings rates may edge lower. Markets now price in limited further cuts in 2026, potentially to around 3-3.25%.

The December 18, 2025, rate cut provides relief for many borrowers, particularly those on variable-rate mortgages, while fixed-rate deals have already seen much of the benefit priced in due to market anticipation.

Mortgage rates are influenced by the base rate but more directly by SONIA swap rates which had driven cuts in fixed deals ahead of the announcement. Mortgages directly linked to the base rate.

Around 500,000 homeowners will see an automatic 0.25% reduction in their interest rate. This typically reduces monthly repayments by £15–£29 depending on loan size; e.g., ~£29 on an average tracker mortgage, or £15 per £100,000 borrowed.

Changes usually take effect within a month or so. Lenders aren’t obliged to pass on the full cut, but many do partially. Some have announced reductions, such as dropping their SVR equivalent from 6.74% to 6.49% effective January 2026.

Average SVR remains high at around 7.27%, so borrowers here could save modestly but should consider switching to a fixed or tracker deal. No immediate change—your rate is locked until the deal ends.However, new fixed-rate deals and remortgages benefit indirectly.

Lenders had already cut rates in anticipation, a “rate war” in recent weeks, with averages falling throughout December. Those remortgaging in 2026 e.g., coming off high-rate deals from 2024 could secure significantly lower rates, potentially saving £100+ per month for first-time buyers or typical borrowers.

Current average UK mortgage rates as of mid-December 2025 is ~4.89%. Two-year fixed: 4.82% some best buys as low as ~4.33–4.06% at lower LTV. Five-year fixed: 4.90% some best buys ~4.38% or lower.

These are down from recent months and reflect expectations of gradual further cuts. The cut was widely expected, so much of the positive impact on fixed rates is already reflected.

Markets now price in limited further cuts in 2026 possibly just one or to ~3–3.25%, due to cautious BoE guidance on persistent services inflation and economic risks. This could keep fixed-rate reductions gradual rather than sharp.

Overall, the current borrowing costs are easing, providing a boost for affordability, remortgagers, and the housing market heading into 2026. UK mortgages are also progressing to a massive growth tied to improved liquidity management.

If your mortgage deal is ending soon, shop around now—rates for new deals remain competitive, and locking in early can secure today’s lows. For personalized advice, consult a mortgage broker.

Coinbase Announces Tokenized Equities, Prediction Markets, as JP Morgan Migrates its Tokenized Deposit Token to Base

By
Paul Ugbede Godwin
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0

Coinbase announced a major product expansion during its “System Update” event, aiming to become an “everything exchange” by blending crypto with traditional finance.

Coinbase is rolling out commission-free trading of traditional U.S. stocks and ETFs directly in its main app initially hundreds of top stocks by market cap and volume, expanding to thousands. This is available to eligible U.S. users, with trading during standard market hours.

Prediction Markets

Now rolling out in the U.S. via a partnership with Kalshi, allowing users to trade event contracts on real-world outcomes like elections, sports, economic indicators, collectibles. Positions can be managed alongside crypto and other balances, starting at as little as $1 in USD or USDC. More platforms will be added later.

Tokenized Equities and Real-World Assets (RWAs)

Traditional stock trading is positioned as a stepping stone. Coinbase is launching Coinbase Tokenize, an institutional platform for issuing and managing tokenized RWAs, including equities. This will enable eventual on-chain tokenized stocks with features like 24/7 trading and blockchain settlement. Full details and rollout expected in early 2026.

Other announcements include simplified futures and perpetuals trading. Instant access to new Solana tokens. Global expansion of the Base App. Tools for businesses— Coinbase Business and custom stablecoins.

This move intensifies competition with platforms like Robinhood which also partners with Kalshi for prediction markets and positions Coinbase to capture growing demand for tokenized assets, where monthly volumes have recently surged.

Coinbase’s “System Update” event marked a pivotal shift toward becoming an “everything exchange,” integrating traditional finance (TradFi) with crypto. This includes immediate rollouts of commission-free U.S. stock/ETF trading and Kalshi-powered prediction markets, plus a roadmap for tokenized real-world assets (RWAs) via the upcoming Coinbase Tokenize platform in early 2026.

Users can now trade stocks, crypto, futures/perpetuals, and event contracts in one app, with unified balances using USDC for predictions starting at $1. Tokenized equities promise 24/7 trading, instant settlement, and global access, democratizing markets currently limited by hours and geography.

Tokenized assets like Treasuries, funds already exceed $18B in 2025, up 400% YoY. Coinbase positions itself as compliant infrastructure for institutions. Could unlock new derivatives like equity-linked futures and efficient collateral use across assets.

Direct rivalry with Robinhood: Both now offer stocks + Kalshi prediction markets. Coinbase differentiates with crypto depth and on-chain roadmap; Robinhood with established stock user base.

Challenges traditional brokers like Schwab, Interactive Brokers by offering seamless crypto-TradFi crossover. Non-U.S. users get stock-linked perps for 24/7 exposure; Base app expansion to 140+ countries.

Prediction markets boom: Estimated $2B revenue now, potentially 5x by 2030 with institutional entry. Easier entry for TradFi users into crypto like stock traders discovering tokens and vice versa. Reduces friction with DEX integrations, like Jupiter for Solana tokens.

Less reliant on volatile crypto spot trading; new streams from stocks, predictions, and tokenization fees. Some see it as “capitulation” amid 2025’s weak prices— Bitcoin ~$88K, down from peaks, viewing pivot to stocks as bearish signal. Others view it as infrastructure win for mass adoption.

Business tools like Coinbase Business, custom stablecoins target enterprises, positioning Coinbase as payments/settlement layer. $COIN: Initial after-hours gains ~1-4%, but overall downtrend persists amid broader crypto weakness. Analysts optimistic long-term.

Limited immediate pump; focus on infrastructure over speculation. Mass onboarding via one-app convenience. New fees from stocks/predictions. Tokenization as major driver, $230M+ est. from equities

Coinbase leads compliant on-chain finance. Bullish if RWAs draw institutional capital Overall, this strengthens Coinbase’s moat in a maturing industry, accelerating the convergence of TradFi and crypto.

While short-term hype was tempered by market conditions, it lays groundwork for explosive growth in tokenized markets—potentially a multi-trillion opportunity by 2030.

JP Morgan Migrates its Tokenized Deposit Token to Base

JPMorgan Chase has migrated its tokenized USD deposit token, known as JPM Coin (ticker: JPMD), from its private permissioned blockchain (Kinexys, formerly Onyx) to Coinbase’s public Ethereum Layer-2 network, Base.

This marks the first full deployment of JPMorgan’s bank-backed deposit token on a public blockchain, driven by growing institutional client demand for on-chain payments, collateral management, and margin settlements using regulated bank deposits rather than stablecoins.

The process began with a proof-of-concept pilot in June 2025, went live for institutional clients in November 2025, and the recent migration expands its use on public infrastructure.

JPM Coin represents direct claims on USD deposits held at JPMorgan, enabling 24/7 near-instant settlements. It remains permissioned available only to approved institutional clients and can potentially earn interest, distinguishing it from most stablecoins.

Primary use cases include on-chain collateral for crypto trades, margin payments, and faster cross-border transfers, addressing limitations of traditional bank accounts and stablecoins.

JPMorgan executives, including Basak Toprak — Product Head of Deposit Tokens, cited client demand for public blockchain compatibility as the main driver. This move bridges traditional finance with public blockchains while maintaining bank control over compliance and issuance.

JPMorgan processes trillions in daily payments and continues expanding its blockchain initiatives, including plans for multi-chain support. This is driven by institutional client demand for on-chain operations while maintaining regulatory oversight.

Bridging Traditional Finance and Decentralized Finance

Marks the first time a major global bank has fully deployed a regulated deposit token on a public blockchain, enabling interoperability with DeFi protocols and crypto ecosystems.

Institutions can now use bank-backed dollars for on-chain activities without relying solely on private networks. Signals growing acceptance by Wall Street of public blockchains, potentially accelerating institutional adoption of Ethereum L2s like Base.

Unlike most stablecoins like USDT, USDC, JPMD represents direct claims on actual USD deposits at JPMorgan, potentially interest-bearing and eligible for FDIC insurance. Reduces counterparty risk— no private issuer default concerns and offers yield, making it more attractive for institutions.

Positions tokenized bank deposits as a competitive threat to stablecoins for institutional on-chain cash equivalents, especially post-regulatory clarity. Enables near-instant, round-the-clock settlements on Base’s low-cost, high-speed network, bypassing traditional banking hours and delays.

Primary use cases: on-chain collateral management, margin payments for crypto trades, and faster cross-border transfers. JPMorgan processes trillions daily; even a fraction shifting on-chain could boost liquidity and reduce costs significantly.

Strengthens Base as a hub for institutional activity, leveraging its cheap transactions and Ethereum security. Increases demand for ETH and on-chain volume; analysts suggest potential massive RWA inflows.

Coinbase benefits directly as a JPMorgan client and Base builder, enhancing its institutional offerings. Remains permissioned, allowing JPMorgan to maintain KYC/AML compliance and control.

Encourages other banks, like HSBC, BNY Mellon to follow with similar tokenized deposits. Highlights preference for bank-issued tokens over stablecoins in some regulatory views; could influence global standards for digital money.

Multi-chain support, multi-currency, and broader client access pending approvals. Potential Risks and LimitationsStill a “walled garden” until multi-bank interoperability arrives. Dependent on regulatory evolution; not available to retail clients currently. Concentration risk: Relies heavily on JPMorgan as the issuer.

This move accelerates the convergence of TradFi and crypto, providing institutions with safer, more efficient on-chain tools while legitimizing public blockchains for regulated finance. It could reshape wholesale payments, collateral management, and the role of stablecoins in institutional markets.

CFTC Acting Chair Caroline Pham Joins MoonPay As DTCC Partners with Canton Network

By
Paul Ugbede Godwin
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0
Signage is seen outside of the US Commodity Futures Trading Commission (CFTC) in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly

MoonPay, a leading crypto payments platform, announced that Caroline D. Pham, the Acting Chairman of the U.S. Commodity Futures Trading Commission (CFTC), will join the company as Chief Legal Officer and Chief Administrative Officer.

This move follows the expected Senate confirmation of her successor, Mike Selig, and marks another high-profile transition from government regulation to the private crypto sector.

Pham has been a key figure in advancing crypto-friendly policies during her tenure:She became Acting Chairman in January 2025 after serving as a Commissioner since 2022. Under her leadership, the CFTC launched initiatives like the Digital Asset Markets Pilot Program (a regulatory sandbox launched December 8, 2025), the Crypto Sprint for market modernization, and spot crypto trading on regulated futures exchanges.

She emphasized innovation in areas like perpetual futures, prediction markets, and tokenized assets.

MoonPay highlighted Pham’s expertise in regulatory matters and market structure as ideal for guiding its growth, especially after the company secured a New York BitLicense and Limited Purpose Trust Charter in 2025.

This hire aligns with a trend of regulators moving to crypto firms, following examples like former Commissioner Summer Mersinger joining the Blockchain Association.

DTCC Partners with Canton Network for Asset Tokenization

The Depository Trust & Clearing Corporation (DTCC) announced a partnership with Digital Asset and the Canton Network, a privacy-focused, permissioned blockchain to tokenize securities custodied at its subsidiary, the Depository Trust Company (DTC).

The project starts with tokenizing a subset of U.S. Treasury securities, with a minimum viable product targeted for a controlled production environment in the first half of 2026. It follows a recent SEC no-action letter granting DTCC regulatory clearance to tokenize real-world assets.

Long-term plans include expanding to a broader range of DTC-eligible assets, such as equities, ETFs, index products, and more, across multiple networks. DTCC will co-chair the Canton Foundation’s governance alongside Euroclear, emphasizing interoperability, privacy, and institutional-grade controls.

This initiative aims to enhance liquidity, enable atomic settlement, intraday collateral mobility, and bridge traditional finance with blockchain infrastructure. It represents a major step toward mainstream institutional tokenization of real-world assets (RWAs).

Pham’s transition from Acting CFTC Chairman to a senior executive role at MoonPay exemplifies the accelerating revolving door between U.S. financial regulators and the crypto industry in late 2025.

This hire brings deep institutional knowledge of digital asset policy directly into a major crypto payments firm. Pham oversaw initiatives like the CFTC’s Digital Asset Markets Pilot Program, Crypto Sprint for spot trading, and tokenized collateral guidance.

At MoonPay, she will lead global legal, administrative, and Washington policy strategy, helping the company navigate compliance, expand internationally, and address barriers like AML and tax reporting for institutional clients.

This positions MoonPay as a more “regulation-resilient” player amid growing institutional demand. Pham joins a wave of similar transitions in 2025, including former Commissioner Summer Mersinger to the Blockchain Association and others to firms like Tether.

These moves signal crypto’s increasing legitimacy and maturation, as firms seek former regulators for compliance excellence and policy influence. It also reflects a pro-innovation shift under recent administrations, with clearer frameworks for derivatives, perpetuals, and prediction markets.

Critics highlight risks of regulatory capture, where officials might favor industry-friendly policies anticipating private-sector roles. However, proponents argue it bridges gaps, translating public-sector reforms into private innovation and fostering responsible growth.

Overall, this strengthens crypto’s ties to traditional regulation, likely accelerating adoption of compliant infrastructure like payments and wallets.

Implications of DTCC’s Partnership with Canton Network for Asset Tokenization

The DTCC’s selection of the privacy-focused Canton Network to tokenize DTC-custodied securities—starting with U.S. Treasuries and expanding to equities—represents a landmark institutional endorsement of blockchain for core financial infrastructure.

Backed by a recent SEC no-action letter, this initiative enables “digital twins” of real-world assets on a permissioned blockchain. It promises atomic (instant) settlement, intraday collateral mobility, 24/7 liquidity, and programmable features, reducing T+1/T+2 delays, counterparty risks, and operational costs.

Starting with Treasuries in a controlled MVP in H1 2026, it could scale to equities, ETFs, and more, unlocking efficiencies for market makers, hedge funds, and dealers. Canton’s protocol-level privacy addresses key barriers for banks and funds, allowing confidential transactions on shared infrastructure—unlike public blockchains.

DTCC’s co-chair role in the Canton Foundation alongside Euroclear positions it to shape global standards for interoperability and governance. As of late 2025, tokenized RWAs exceed $30-40 billion dominated by Treasuries via platforms like BlackRock’s BUIDL.

This DTCC move validates permissioned networks for systemic-scale tokenization, potentially driving the market toward $50 billion+ in 2026 and trillions long-term. It signals tokenization shifting from experiments to production, enhancing liquidity, fractional ownership, and DeFi-TradFi integration.

These developments, announced on the same day, underscore rapid convergence. Regulators turning industry insiders (Pham) and TradFi giants embracing blockchain (DTCC) indicate crypto’s transition from fringe to foundational. Expect faster growth in compliant products, RWAs, and institutional inflows.

Under a pro-crypto policy environment, these signal reduced enforcement risks, more sandboxes, and frameworks for tokenized assets/derivatives. Enhanced liquidity and efficiency could broaden access, but challenges remain around standardization, privacy risks, and equitable regulation.

Together, they mark a pivotal moment: blockchain integrating into Wall Street’s “plumbing,” with former regulators guiding the bridge. This bodes well for sustained growth in digital assets into 2026.

xStocks Launches on TON Wallet As Samani Criticizes Ethereum

By
Paul Ugbede Godwin
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0

Kraken-backed tokenized equities platform xStocks officially launched on the TON (The Open Network) blockchain, integrated directly into Telegram’s self-custodial TON Wallet.

This allows millions of Telegram users to buy, hold, and transfer tokenized versions of U.S. stocks and ETFs, like Tesla – TSLAx, Nvidia – NVDAx, S&P 500 ETF on-chain, often as easily as sending a message. Available in “nearly all markets” where TON Wallet operates, covering significant global turnover, but excluded from the US, EU, and Australia at launch due to regulatory compliance.

xStocks are fully collateralized 1:1 with real underlying assets, issued by Backed Finance which Kraken plans to acquire. Since its initial launch on Kraken in June 2025, xStocks has grown to over $180 million in on-chain assets and nearly 50,000 unique holders.

TON Wallet has ~100 million users, and Telegram overall has over 900 million, potentially accelerating adoption of real-world assets (RWAs) in emerging markets. This move positions TON as a leader in on-chain regulated assets, blending TradFi with crypto accessibility.

Kyle Samani’s Criticism of Ethereum

Kyle Samani, Managing Partner at Multicoin Capital, a major Solana investor, has been vocal in criticizing Ethereum’s progress.

In recent statements, he claimed Ethereum has “accomplished almost nothing in eight years” despite high expectations, pointing to persistent scaling issues, lack of urgency since 2017 and slower development compared to competitors like Solana.

Samani argues: Ethereum lacks founder-driven hustle, treating it more like open-source code valuable but not customer-focused than a competitive business. It has suffered from complacency, with no major scaling urgency post-2017 highs.

Solana, by contrast, has achieved “escape velocity” with better resilience, lower fees, and faster innovation. This fits Samani’s long-standing bullishness on Solana “flipping” Ethereum, emphasizing Ethereum’s challenges in capturing lasting value amid L2 fragmentation and competition.

The integration of Kraken-backed xStocks into Telegram’s TON Wallet marks a significant milestone in bridging traditional finance (TradFi) with crypto, particularly real-world asset (RWA) tokenization.

Telegram has over 900-1,000 million users globally, with TON Wallet reaching nearly 100 million. This exposes tokenized U.S. stocks and ETFs to a massive, non-crypto-native audience, especially in emerging markets. Users can buy, hold, and transfer these assets as easily as sending a message, with self-custody and low fees via TON’s scalable blockchain. No traditional brokerage account or complex onboarding required.

Initial rollout covers “nearly all markets” excluding US, EU, Australia for regulatory reasons, capturing ~95% of global equity turnover outside restricted regions. This prioritizes developing economies, democratizing access to U.S. markets previously limited by geography or capital.

Since June 2025 launch on Kraken, xStocks grew to >$180M in on-chain assets and ~50,000 holders. TON integration plus DeFi access via STON.fi swaps could accelerate this exponentially. Positions TON as a leader in regulated RWAs, ahead of competitors like Ethereum or Solana in mass-distribution channels.

TON’s speed, low costs, and Telegram embedding provide “real, tangible financial utility.” Tokenized assets hit ~$24B by mid-2025 ~380% growth in 3 years, with projections to $30T+ by 2030-2034. This launch aligns with institutional pushes and could drive TON’s TVL and user growth.

Challenges centralized brokers by offering 24/7 transfers though trading hours tied to underlying markets and composability with DeFi. Kraken’s vertical integration unifies issuance/trading/settlement, strengthening its push into global capital markets.

Overall, this could catalyze mainstream RWA adoption, making TON a key hub for on-chain TradFi and boosting Telegram’s role as a “super app” for finance.

Implications of Kyle Samani’s Criticism of Ethereum

Samani contrasts Ethereum’s open-source, decentralized approach valuable but slow, like Linux with Solana’s “founder-driven hustle,” engineering discipline, and customer focus.

He abandoned Ethereum in 2017 due to perceived lack of urgency, doubling down on Solana as the “fastest horse” for global finance. Solana’s resilience; lower fees, and “escape velocity” vs. Ethereum’s L2 fragmentation, high costs, and captured value leaking to layers.

Ethereum dominates TVL/developers but struggles with user experience/scalability; Solana gains in trading volume, DeFi activity, and real-time apps. Samani’s bias noted, but criticism resonates amid Ethereum’s challenges.

Could pressure Ethereum community to address “complacency” as echoed by others like Alex Svanevik, pushing faster innovation or risking market share loss by 2030. Reinforces “flippening” thesis, potentially boosting SOL sentiment/investment amid RWA and DeFi growth.

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