Crypto Jumps the Gun on FOMC

DAILY MARKET OVERVIEW

Can This Rally Hold ⁉️ 

👋 Hey, Crypto Enthusiasts! The countdown is almost over. We are just one day out from the critical FOMC decision, and the crypto market is already making its move.

Prices are sending higher as traders aggressively front-run the Fed, pricing in a near-certainty of further rate cuts. The confidence is big:

• Polymarket Odds: Now sitting at 95% for a cut.

• CME FedWatch: hovering close to 90%.

The macro backdrop is adding fuel to the fire. We just received better-than-expected US JOLTS data, signaling that companies are still actively hiring. This points to economic resilience, a "goldilocks" scenario that the market has taken as a green light for risk assets.

🐋 Institutional "Whales" are back

Big buyers are stepping in to support this structure:

• Strategy has returned to the arena, purchasing nearly $1 Billion in BTC, a massive increase in volume compared to recent weeks.

• Bitmine is aggressively stacking Ethereum, with monthly accumulation now hitting the $200M - $300M range.

A comeback structure is building. However, pre-FOMC price action is notoriously volatile. While the setup looks bullish, expect sharp wicks in both directions before and after the official announcement.

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The Ethereum Ecosystem Awakens

With the market potentially carving out a bottom, our eyes are locked on Ethereum as the premier setup among majors.

If this momentum holds and risk-on sentiment returns post-FOMC, ETH could be primed for a significant repricing, potentially targeting the $5k - $6k territory or higher.

The "DeFi Renaissance" Playbook

The strength in ETH is likely to spill over into its core ecosystem. Here is where the smart money is looking:

🐴 Uniswap (UNI): The rumor mill is spinning with reports of a potential BlackRock investment. Combined with a possible "Buyback and Burn" program approval this month, UNI has two massive catalysts on the horizon.

🏦 AAVE: Emerging as the future of crypto banking. AAVE is currently the #1 project by Total Value Locked (TVL), having grown by over $10 Billion in 2025. Watch for their new "crypto banking app" aimed at bringing yield to the masses.

🔹 Chainlink (LINK): Outside the immediate ETH ecosystem, LINK remains our favorite long-term infrastructure play for 2026.

The pieces are falling into place for a rally, but the next 24 hours will be noise. Exercise caution around the FOMC release. The swings can be brutal before the true trend reveals itself.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

BlackRock moves to add staked Ethereum ETF
BlackRock filed for a new staked Ethereum ETF, aiming to add staking rewards to its product lineup as crypto ETFs continue expanding across the U.S.

SEC closes investigation into Ondo Finance
Ondo Finance says the SEC ended its multi-year probe without charges, signaling a more supportive environment for tokenization and onchain securities in the U.S.

Tether gains approval for USDT across nine chains
Abu Dhabi now allows regulated use of USDT on nine major blockchains, expanding stablecoin access as the region positions itself as a global digital asset hub.

Circle and Bybit partner to expand USDC use
Circle and Bybit will boost USDC liquidity, payments and savings features, giving the stablecoin wider global reach as competition with USDT intensifies.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

1000x Podcast – Are We Still in a Bull Market? (09.12.2025 Summary)

Hosts Avi and Jonah are adopting a cautious tone regarding the immediate state of the market. They argue that despite Bitcoin’s yearly gains, the broader ecosystem feels like it is in "decay mode" rather than a raging bull market, specifically warning listeners about volatility during the final weeks of December.

Key Discussion Points

• December Tax Loss Harvesting: The hosts expect price weakness through the end of the year as funds sell losing positions to offset tax liabilities. Because crypto lacks "wash trading" rules, investors can sell to claim a loss and immediately rebuy, creating selling pressure.

• Trading Strategy: They suggest trading will be difficult until January. The best approach is either taking the last week of December off or shorting assets where holders have high unrealized losses.

• The Death of the NFT Meta: Avi discusses selling his CryptoPunk at a loss to harvest the tax benefit and free up liquidity. They argue that specific cycles (like the 2021 NFT mania or 2017 ICO boom) rarely return; liquidity is better deployed into current winners like Bitcoin.

• Asset Allocation: The hosts remain heavy on Bitcoin and light on altcoins. They note that while BTC is up significantly, most alts and collectibles are down 70-80%, reinforcing a "Bitcoin dominance" thesis.

• Equities and Macro: They are bullish on Robinhood (5-year view) and Tesla (robotics thesis). They anticipate the Trump administration will stimulate the stock market, potentially driving inflation, which favors Bitcoin and Tech stocks over commodities.

The Takeaway

The market is currently in a seasonal "clearing out" phase. Do not force trades during the low-liquidity holiday period. Instead, use this time to harvest tax losses on dead narratives (like old NFTs) and prepare to deploy capital aggressively when the market resets in January.

Altcoin Daily – The Fed Just Set the Stage for a Major Crypto Market Rally in 2026 (09.12.2025 Summary)

In this episode, Altcoin Daily analyzes the critical final Federal Reserve meeting of the year. The host argues that shifting monetary policy, specifically "unofficial" quantitative easing and a transition in Fed leadership is quietly setting the stage for a massive crypto rally leading into 2026.

Key Discussion Points

• Fed Rate Cut & Leadership: Markets are pricing in a 94% chance of a 25-basis point rate cut this week. With Jerome Powell eventually exiting, a more pro-growth Federal Reserve is expected to take over by 2026.

• Stealth Stimulus: Starting in January, the Fed is expected to begin buying back approximately $45 billion in debt monthly. The host notes that while they won't officially call this "Quantitative Easing" (QE), it effectively acts as a major liquidity injection.

• Bitcoin Supply Shock: Fundamentals remain strong with over 400,000 BTC moving off exchanges in the last year, reducing sell pressure. Additionally, the UAE has officially designated Bitcoin as a strategic financial asset.

• Ethereum as a Value Play: Despite recent price weakness, Ethereum is highlighted as a "buy low" opportunity. It remains the dominant chain for tokenized stocks and currently settles more volume than Visa or Mastercard.

• The Privacy Narrative: Following the recent surge in Zcash, the host predicts that privacy protocols and cross-chain privacy solutions will become the dominant market narrative in 2026.

• Regulatory Wins: The CFTC has launched a pilot program allowing Bitcoin, Ethereum, and USDC to be used as collateral in derivatives markets, unlocking massive utility for these assets.

The Takeaway

While Bitcoin historically experiences short-term volatility immediately following FOMC meetings, the long-term macro picture is bullish. Between the CFTC validating crypto as collateral and the Fed preparing to quietly turn the money printer back on in January, the market is structurally gearing up for the next leg up.

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