Bitcoin Holds Steady at $90K as Whales Target Ethereum Dip: Finance Insights

Cryptocurrency markets are in a phase of consolidation after last week's significant recovery. Bitcoin is stabilizing above the critical psychological level of $90,000, while market sentiment remains cautious. Ethereum treasury trades are decreasing, and attention is focused on the upcoming interest rate decision from the US Federal Reserve.

Key Takeaways

Bitcoin continues to trade above $90,000, reflecting cautious but positive investor sentiment.
Ethereum digital asset treasuries have seen a drastic decline in monthly acquisitions, dropping 81% over three months.
The upcoming Federal Reserve meeting could influence interest rates, with a high chance of a cut being projected.
Major Ethereum holders like BitMine are still actively acquiring Ether.
Citadel Securities has sparked controversy by calling for stricter regulations on DeFi regarding tokenized stocks.

Bitcoin's Stability Above Key Level

In the latest week, cryptocurrency markets have maintained a steady state following an anticipated recovery. Bitcoin remains firmly above the crucial level of $90,000, although investor sentiment is still marked by a sense of “fear.” Notably, CoinMarketCap's Fear & Greed index has seen a slight increase from 20 to 25 during the week.

Fear & Greed index, all-time chart. Source: CoinMarketCap

In a broader context, the trade involving Ethereum treasuries is beginning to decline. Monthly Ether acquisitions by Ethereum digital asset treasuries (DATs) have plummeted by 81% in just three months from a peak in August. Despite this, BitMine Immersion Technologies, the largest corporate Ether holder, continues to accumulate ETH while other treasury firms are also pursuing fundraising for future acquisitions.

Interest rate cut probabilities. Source: CMEgroup.com

Decline in Ethereum Treasury Trade

The Ethereum treasury trade is showing signs of unwinding, with notable decreases in monthly acquisitions from August’s peak. Ethereum DAT investments fell dramatically from 1.97 million Ether to just 370,000 ETH by November, as per reports from Bitwise, an asset management firm.

“ETH DAT bear continues,” remarked Max Shennon, a senior research associate at Bitwise, in a recent social media post. Nonetheless, some companies with a solid financial base are still investing in this cryptocurrency or securing funding for future purchases.

Source: Max Shennon

BitMine Immersion Technologies has notably acquired around 679,000 Ether, valued at approximately $2.13 billion over the past month. They have achieved 62% of their objective to accumulate 5% of Ethereum’s total supply. According to additional data, BitMine maintains a cash reserve of around $882 million, hinting at future Ether accumulation plans.

Top corporate Ether holders. Source: Strategicethreserve.xyz

Citadel's Call for Regulation

Citadel Securities has generated discussion by urging the US Securities and Exchange Commission (SEC) to implement more robust regulations regarding decentralized finance (DeFi), specifically for tokenized stocks. In a letter addressed to the SEC, Citadel argued that DeFi platforms should be regulated as “exchanges” or “broker-dealers,” rejecting the notion of broad exemptions for developers and wallet providers involved in trading tokenized US equities.

The response from the crypto community has largely been negative, with many advocating for greater innovation within the blockchain space.

Arthur Hayes Issues Warning on Monad

Arthur Hayes, a well-known figure in the crypto space, has raised concerns regarding Monad, cautioning that this recently launched layer-1 blockchain could experience a significant collapse of up to 99%. He describes Monad as driven mainly by venture capital hype, prioritizing profits over actual adoption.

In an interview, Hayes noted that projects often face sharp declines after initial price surges following token unlocks, making retail traders particularly vulnerable. He predicts that most new layer-1 networks will ultimately fail, with only a select few, including Bitcoin, Ether, Solana, and Zcash, likely to endure.

Monad recently launched with a $225 million investment from Paradigm, introducing its MON token to the market.

Monad’s MON token up 40% since launch. Source: CoinMarketCap

Crypto Lending Market Overview

The crypto lending market has gained transparency and has reached an outstanding loan amount of nearly $25 billion as of the third quarter, with contributions from main players such as Tether, Nexo, and Galaxy. The market has expanded over 200% since early 2024, although it still falls short of the peak of $37 billion recorded in early 2022.

The importance of transparency among lending platforms has been emphasized by Galaxy’s research head, Alex Thorn, noting this as a shift from past market cycles.

The crypto lending landscape has seen many new platforms in the past three years. Source: Alex Thorn

Portal to Bitcoin's Fundraising Success

The Portal to Bitcoin, a protocol dedicated to Bitcoin interoperability, has successfully raised $25 million in funding while unveiling its new atomic over-the-counter (OTC) trading desk. This funding round was led by JTSA Global and included earlier contributions from Coinbase Ventures and OKX Ventures.

The newly introduced Atomic OTC desk promises instant, trustless cross-chain settlement for substantial trades. Portal to Bitcoin is focusing on the Bitcoin-anchored OTC market, distinguishing itself with a tech stack designed to eliminate the need for custodians or wrapped assets.

Decentralization Portal to Bitcoin team members, from left to right: co-founder and chief technology officer Manoj Duggirala, founder and CEO Chandra Duggirala, and co-founder George Burke. Source: Portal to Bitcoin

DeFi Market Trends

According to data sourced from Cointelegraph Markets Pro and TradingView, the majority of the top 100 cryptocurrencies experienced losses this week. The Canton (CC) token faced the largest drop, declining 18% while the Starknet (STRK) token followed closely behind, down 16% on the weekly chart.

Total value locked in DeFi. Source: DefiLlama

Thank you for reading our overview of this week's influential developments in DeFi. We look forward to bringing you more stories, insights, and educational content next Friday as this dynamic space continues to evolve.