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Crypto Market Update: Chainlink ETF Launch Expected as Fed Rate Speculation Builds

The cryptocurrency market entered the first week of December with heightened volatility, renewed investor uncertainty, and several major developments that could shape trading conditions for the remainder of the year. From Bitcoin’s sudden weekend crash to rising anticipation surrounding the first Chainlink spot ETF, global markets are navigating a mix of fear, policy speculation, and shifting institutional sentiment.

The total global crypto market cap currently stands at $3.06 trillion, reflecting a drop of 3.8% over the last 24 hours. Daily trading volume rose to $109 billion as traders reacted to sudden liquidity shocks and rapid price swings. Bitcoin continues to dominate the market with a 57.1% share, followed by Ethereum at 11.3 percent. A total of 19,332 active cryptocurrencies are being tracked, with Polkadot and XRP Ledger Ecosystem emerging as the biggest gainers in the last trading cycle.

Bitcoin Drops $4,000 in Sudden Weekend Crash

Bitcoin led the downturn after plunging nearly $4,000 in a two-hour window late Sunday. The price fell from roughly $92,000 to $87,500, a move largely blamed on thin weekend liquidity and record-high leverage levels. More than $400 million in leveraged long positions were liquidated within an hour, accelerating the downward pressure.

Market analysts described the event as another example of structural fragility and excessive leverage, rather than a shift in fundamentals. Throughout 2025, Bitcoin has repeatedly experienced sharp, news-free weekend declines due to overextended derivatives positioning. Despite the correction, long-term on-chain indicators remain stable, though sentiment has weakened.

As of this morning, Bitcoin trades at $87,363, marking a 3.98% decline over 24 hours. The asset holds a market cap of $1.74 trillion and a 24-hour trading volume of $48.7 billion.

Top 5 Trending Coins in the Last 24 Hours

While Bitcoin dominated headlines, several smaller-cap tokens captured market attention:

1. DeMCP (DCMP) at $0.0001359, down 16.85% with $47.85K in trading volume.

2. Planck (PLANCK) at $0.04216, down 1.63%, supported by $13.22M in volume.

3. Yooldo (ESPORTS) at $0.4545, gaining 0.42% with $198.17M volume.

4. Bitcoin (BTC) at $87,282.74, down 4.02% with $48.48B volume.

5. Ellie (ELLIE) at $0.001299, up 1.8% with $483.12K volume.

Top Gainers and Losers of the Day

Among the biggest gainers, MYX Finance led the market with an 8.31% rise to $2.84 and a significant $34.89 million trading volume. JUST (JST) followed with a 7.75% increase to $0.04295, while MemeCore (M) rose 6.99% to $1.38.

On the downside, Zcash suffered the steepest decline, falling 17.71% to $383.70 amid concerns over network privacy updates and regulatory speculation. Ethena (ENA) dropped 13.92% to $0.2471, and Dash shed 13.85% to trade at $49.38.

Stablecoins and DeFi Market Overview

Stablecoins maintain a collective market cap of $309 billion with $70 billion in daily volume, reflecting no significant change.

The decentralized finance (DeFi) sector experienced a sharper pullback. Its overall market cap dropped to $106 billion, down 5 percent in the last 24 hours, with a trading volume of $5.2 billion. DeFi dominance currently stands at 3.5 percent.

Fear and Greed Index Turns Sharply Lower

Current market sentiment shows heightened fear among investors. The Fear & Greed Index today stands at 24, placing it in the "Extreme Fear" category. This is lower than yesterday’s reading of 28 and last month’s 33, though slightly higher than last week’s 19. Analysts attribute the shift to increasing price volatility, a sharp decline in leveraged positions, and intensifying investor caution after several unexpected pullbacks.

Source: Alternative Me

Key Market News and Events

1. Fed’s Inflation Gauge in the Spotlight

Markets are focusing this week on the Federal Reserve’s key inflation gauge, the Personal Consumption Expenditures (PCE) report. Last week’s Beige Book indicated minimal economic change and weakening labor demand. European Central Bank minutes echoed similar sentiment, signaling no immediate move toward rate cuts. Upcoming U.S. macro data, including ADP employment figures and PMI readings, may further influence expectations for year-end monetary policy.

2. Trump to Announce New Federal Reserve Chair

President Trump revealed that he has chosen the next Federal Reserve Chair and intends to announce the decision soon. The frontrunner is Kevin Hassett, raising speculation about potential shifts in monetary policy. Markets are watching closely, as a leadership change could influence future interest-rate paths and global liquidity conditions.

3. Critical U.S. Economic Data Expected This Week

The final month of 2025 begins with a heavy lineup of U.S. economic releases, including job openings, employment data, jobless claims, PCE inflation, and consumer sentiment. These indicators will guide market sentiment and determine whether the Federal Reserve maintains a cautious stance or leans toward policy adjustments in early 2026.

4. First Chainlink Spot ETF Expected This Week

ETF analyst Nate Geraci signaled that the first Chainlink spot ETF may launch within days. Grayscale has already filed to convert its Chainlink private placement trust into a fully tradable exchange-traded fund. The development could further institutionalize the LINK token, similar to what unfolded following Ethereum ETF approvals earlier in the year.

5. Coinbase Strategist Recommends Dollar-Cost Averaging

John D’Agostino, Senior Strategist at Coinbase, noted that Bitcoin wallet activity remains stable despite market volatility. He urged investors to rely on dollar-cost averaging (DCA) as a disciplined long-term strategy. He cautioned that even professional analysts cannot reliably time the market, emphasizing that consistency tends to outperform reactionary trading.

6. Yearn Finance Faces Major Exploit

Yearn Finance confirmed a significant exploit affecting its yETH product. Attackers reportedly minted unlimited yETH, drained the liquidity pool, and stole approximately 1,000 ETH. Some stolen funds were later routed through Tornado Cash. The Yearn team is actively investigating, prompting renewed discussions about DeFi security protocols.

7. Tether CEO Defends Corporate Reserve Strength

Tether CEO Paolo Ardoino released a statement defending the company’s financial health after skepticism emerged surrounding its third-quarter attestation report. According to Ardoino, Tether holds billions in excess reserves and nearly $30 billion in total equity. He highlighted that critics overlooked these metrics and pointed out that Tether earns roughly $500 million a month from U.S. Treasury yields alone.

8. Strategy Outlines Conditions for Selling Bitcoin

Crypto investment firm Strategy clarified that it would only sell Bitcoin under extreme circumstances, such as its mNAV dropping below 1 or losing access to capital. CEO Phong Le reiterated the firm’s long-term commitment to holding Bitcoin but acknowledged that limited strategic sales remain a possibility.

9. Vitalik Buterin Warns Zcash on Token Voting

Ethereum founder Vitalik Buterin issued a warning to the Zcash team against implementing token-based governance. He argued that token voting creates vulnerabilities, adds unnecessary centralization, and undermines privacy — a core principle of Zcash. Buterin emphasized that governance decisions should not be left solely to median token holders.

10. Kazakhstan Considers $300 Million Crypto Investment

Kazakhstan’s central bank is exploring a potential crypto investment between $50 million and $300 million, depending on market stability. Officials confirmed that any investment would come from foreign exchange reserves rather than sovereign wealth funds. The move signals growing institutional adoption in emerging markets, though the decision will likely depend on volatility levels in the coming months.

Outlook for December and Beyond

With extreme fear rising in market indicators and macroeconomic uncertainty intensifying, December is shaping up to be a pivotal month for crypto markets. The launch of the first Chainlink ETF may inject new institutional capital, while decisions from the Federal Reserve and global central banks could set the tone heading into 2026. Investors will be watching closely as volatility and liquidity conditions continue to shift rapidly.

Source: News

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Writer @Erlin
Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.
 
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