The cryptocurrency market has experienced a decline of 2 to 4 percent in recent days, with Bitcoin’s price falling approximately 2 percent to around $91,400. Ethereum also dropped by 2 percent to $3,130, while Binance Coin and Solana saw decreases of 2 and 4 percent respectively. Conversely, Zcash and Tron recorded gains of 4 and 2 percent. BlackRock CEO Larry Fink revealed that government sovereign wealth funds have steadily increased their Bitcoin purchases, strengthening long-term investment positions when Bitcoin’s price fell from $126,000 to near $80,000. These investors, typically institutions managing state or government financial resources, view their interest in cryptocurrency as a sign of market confidence. The International Monetary Fund (IMF) has warned that the rising use of stablecoins could undermine central banks’ financial sovereignty and currency control, posing a challenge to global financial stability. In technology developments, a new bridge has been established between Solana and Coinbase’s base networks, secured by Chainlink and Coinbase infrastructure, facilitating enhanced interoperability among blockchain networks. The U.S. Commodity Futures Trading Commission (CFTC) has approved spot cryptocurrency trading on registered exchanges, with Bit Nomial set to be the first company to launch under this framework. In the UK, the Reform UK political party received its largest donation to date—$11.4 million from an investor linked to Tether. Recent research indicates that the nearly $4 billion outflow from Bitcoin ETFs in October and November was primarily due to large funds closing leveraged basis trades amid investment fears. These developments mark significant milestones in growing institutional investment and regulatory progress within the cryptocurrency space, highlighting the market’s increasing popularity and acceptance.
Source: decrypt
