Flipster Crypto Weekly (December 19)

BTC slides toward $85K as CPI relief meets policy friction

December 19, 2025

Crypto markets closed the week lower and more reactive than directional, as macro signals, regulatory clarifications, and TradFi expansion headlines repeatedly pulled price without delivering follow-through.

BTC slid from the high-$88K area earlier in the week to ~$85.5K by Friday, while ETH retraced from above $3K to ~$2.83K. Bitcoin dominance remained firm around 59–60% throughout, reinforcing a defensive tape where capital rotated toward majors but avoided conviction.

Price action stayed choppy across sessions, with U.S. hours driving most intraday moves and Asia consistently fading strength. Liquidity thinned into the Fed and inflation data, amplifying short-term volatility without resolving structure.

Macro: Inflation Relief, But No Clean Signal

The week’s largest swings followed U.S. inflation data that came in cooler than expected. Initial relief sparked upside volatility, but follow-through quickly faded as markets recalibrated expectations around policy easing.

Despite softer inflation prints, traders showed little appetite to price aggressive rate cuts. Instead, the tape reflected uncertainty; sharp reactions to macro releases, followed by fast mean reversion. BTC failed to reclaim prior highs, while ETH underperformed relative to earlier December levels.

The message was consistent: macro still matters, but clarity remains elusive.

Regulation: Custody Lines Tighten as Banks Re-Enter Crypto

Regulatory developments quietly reshaped the landscape this week.

The SEC issued new custody guidance clarifying that broker-dealers must maintain exclusive control of private keys to comply with custody rules for crypto asset securities, including tokenised equities. The guidance reinforces a clear separation between qualified custodians and third-party key arrangements; a meaningful signal for tokenised securities infrastructure.

In parallel, the Federal Reserve withdrew a restrictive 2023 policy that had limited banks’ crypto activities. State member banks can now seek approval for new digital asset services, reopening a path for regulated institutions to expand custody, settlement, and on-chain finance offerings.

TradFi moved quickly to fill the gap. SoFi launched SoFiUSD, a fully reserved dollar stablecoin issued by its national bank, positioning it as 24/7 settlement infrastructure for banks and fintechs. The move underscores a broader trend: stablecoins are becoming bank-native primitives, not edge experiments.

Industry Moves: Exchanges Converge, Capital Rotates

Exchange strategy dominated corporate headlines.

Coinbase accelerated its push toward an “everything exchange,” expanding into commission-free stock trading, prediction markets, Solana DEX access via Jupiter, simplified futures, custom stablecoins, and payments infrastructure — all within a single app. The strategy places Coinbase in direct competition with fintech super-apps and onchain-native platforms alike.

Binance explored options to relaunch Binance.US, signaling renewed interest in re-entering regulated U.S. markets amid shifting policy tone.

On the institutional side, Ark Invest aggressively bought the dip across crypto-linked equities during a broad market selloff, allocating tens of millions into Coinbase, Circle, Block, Bullish, and BitMine.

Capital formation remained active despite price weakness. RedotPay raised $107M in an oversubscribed Series B as it scaled a profitable stablecoin payments business exceeding $10B in annualised volume. Circle strengthened its cross-chain ambitions by acquiring the team and IP behind Interop Labs, reinforcing infrastructure for CCTP and multichain settlement.

Market Structure: Defensive, Reactive, Waiting

Across the week, the pattern was consistent:

• U.S. sessions lifted price

• Asia faded moves

• Headlines drove volatility more than charts

BTC remained range-bound but fragile, failing to reclaim prior resistance. ETH continued to lag after losing the $3K handle. Dominance staying elevated signaled risk-off positioning beneath the surface.

With liquidity thin and macro still in flux, traders treated each catalyst tactically rather than structurally.

Outlook

Markets are searching for a new anchor.

Macro data, regulatory clarity, and TradFi’s expanding crypto footprint are reshaping the medium-term landscape, but price has yet to confirm direction. BTC’s retreat toward the mid-$80Ks resets positioning, while ETH remains sensitive to broader risk sentiment.

Until liquidity returns and policy expectations firm up, expect continued whipsaw conditions and headline-driven moves.

Trade accordingly.

Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with a significant risk of loss due to its high price volatility, and is not suitable for all investors. Please refer to our Terms.