Fed Fires Up the Money Printer – Markets Await Liquidity Injection

December Started Strong – Fed Expectations Lift Stock Markets

December started strong in stock markets as investors increasingly price in a Federal Reserve (Fed) rate cut in December. Nasdaq led the gains, although trading volumes remained light.

Bitcoin Awaits Liquidity Injection

The crypto markets were more subdued. While the macro environment has calmed and stocks reacted positively, Bitcoin remains in volatile sideways movement, still suffering from tightness in U.S. financial markets. Wednesday's FOMC meeting is expected to bring relief, not just through a rate cut but possibly through a so-called "not-QE QE" operation, where the Fed would start buying government bonds and increasing reserves distributed to banks. This could be a surprisingly positive surprise for markets and propel Bitcoin into a new rally.

Macro Environment Supports Risk, Though Japan Creates Tensions

On the economic data front, the U.S. situation remains balanced. Service sector growth surprised positively, although manufacturing remains in contraction. PCE inflation readings were moderate, and labor markets appear to be softening without signs of recession. This supports a rate cut without major concerns.

However, the Bank of Japan's situation brings concern to international financial markets. Rate hike rhetoric shook the government bond market and pressured the yen. A potential rate hike might force the central bank to simultaneously buy bonds. This could keep the yen weak and increase outflows toward the U.S., which in turn supports dollar-denominated assets.

Tight Financial Markets Squeeze Bitcoin – Eyes on Wednesday

The softening U.S. dollar, falling oil prices, and low stock volatility create a risk-favorable environment. But Bitcoin needs more liquidity to rise properly. Wednesday's Fed decision is key: if the money taps open, the market could turn quickly. Otherwise, investors will need patience through year-end.

Binance Released December Proof of Reserves Report

Binance released its December Proof of Reserves report. User BTC reserves grew by 4%, but ETH and USDT decreased slightly.

Western Union Developing Stablecoin Card

Western Union is developing a prepaid stablecoin card for high inflation countries. For example, in Argentina, USD stablecoins protect purchasing power.

USD-Pegged USDPT Coming to Solana

A USD-pegged USDPT coin is coming to Solana in early 2026. The new stablecoin expands the ecosystem's payment capabilities.

UK Officially Recognized Crypto as Property

In the United Kingdom, digital asset regulation took a major step forward when new legislation officially recognized crypto as property. This is a significant development in the regulatory framework.

SEC's Paul Atkins: Financial Markets Moving to Blockchain

SEC Chairman Paul Atkins estimated that the entire U.S. financial market will move to blockchain infrastructure within two years. The assessment highlights the growing importance of blockchain technology in traditional finance.

BlackRock's Larry Fink: Bitcoin is a "Fear Asset"

BlackRock's Larry Fink acknowledged a major shift in his attitude toward Bitcoin, though he called it a "fear asset." The company's Bitcoin ETF has grown significantly.

Japan's Interest Rate Moves and MicroStrategy Selling Wave

Japan's interest rate movements caused a temporary dip in Bitcoin prices as leveraged positions began unwinding. A sudden selling wave in MicroStrategy products highlighted how strongly corporate balance sheet tactics and crypto markets are linked.

Bank of America Opened Crypto Products to Wealthy Clients

Bank of America opened crypto products to its wealthy clients, joining JPMorgan and Citi. Major banks are expanding their crypto offerings to institutional clients.

Coinbase and Vanguard: Markets Recovering Slowly

Coinbase estimates the market is slowly recovering and forecasts a more stable Q1. Vanguard made a historic turn and now allows crypto-based ETFs on its platform.

BlackRock: Three Megatrends Shaping Global Markets

According to BlackRock, three megatrends are shaping global markets: artificial intelligence, stablecoins, and liquidity redistribution. Stablecoin usage has grown strongly, becoming an increasingly important part of payment traffic, corporate finance, and the future of financial markets.