Crypto Market Update: Bitcoin Erases Earlier Gains in Thin Holiday Trading

Bitcoin and Ether price update

Bitcoin (BTC) was priced at US$88,323.51, up by 0.1 percent over 24 hours.

BTC’s drop to around US$88,100 while gold surged, marked with choppy descent and heavy long liquidations, signals profit-taking and deleveraging after morning highs above US$90,000.

RSI at 48, cooling from 65, and steady 0.007 percent funding show fading upside conviction, while OI down 1.3 percent confirms capital flight, risking further downside to US$87.6K support in thin holiday trading.

Positive funding persists mildly, so no extreme short bias yet. Holiday volumes amplify moves. Range-bound trading could persist until US session catalysts hit.

Ether (ETH) was priced at US$2,978.19, down by 0.3 percent over the last 24 hours.

Altcoin price update

• XRP (XRP) was priced at US$1.90, down by 0.8 percent over 24 hours.

• Solana (SOL) was trading at US$124.44, down by 0.7 percent over 24 hours.

Today's crypto news to know

Binance expands ETH options access amid JPMorgan's institutional crypto plans

Binance has expanded access to ETH options trading, a feature once restricted to pros, to all users, according to a press release shared with CoinDesk. The move was reportedly in response to increasing demand from both retail and institutional investors for advanced derivative trading tools.

After completing a suitability check and posting margin, users will now be able to sell, or write, ETH options, collecting upfront premiums and employing strategies such as covered calls, with returns independent of the price direction.

Meanwhile, a Bloomberg report citing a person familiar with the plans claimed that JPMorgan Chase is assessing products and services in its markets division as part of a potential expansion into cryptocurrency trading for its institutional clients.

US at “critical juncture” for crypto regulation, says David Sacks

In an X post this morning, AI and crypto czar, David Sacks, called Mike Selig, who was confirmed Chair of the Commodity Futures Trading Commission last week, and Securities and Exchange Commission Chair Paul Atkins, a “dream team to define clear regulatory guidelines.”

The Senate confirmed Selig last week in a 53 to 43 vote. Sacks’ comments were in response to Selig’s post following his confirmation. Selig said he welcomed the “vital responsibility to oversee the stability and security of America’s commodity derivatives markets during this period of rapid transformation.”

The US Congress is currently preparing to complete work on a crypto market structure bill.

Coinbase to acquire prediction market startup

Coinbase (NASDAQ:COIN) announced today its plan to buy The Clearing Company, a small San Francisco startup that builds systems for prediction markets, which raised US$15 million in funding this summer.

This development comes days after Coinbase launched its own prediction market as part of a push to become a one-stop shop for all kinds of trading.

The Clearing Company’s team includes vets from betting sites Polymarket and Kalshi, who will now join Coinbase to speed up building these markets. The deal mixes cash and stock and is expected to close in January after approvals.

US crypto funds see US$952M outflow amid regulatory delays

Investors pulled US$952 million from US crypto investment products last week, marking the first weekly outflow in a month, according to data from CoinShares.

The exodus was concentrated in the US totaling US$990 million, which was partially offset by modest inflows into Canadian and German products.

Analysts attributed the sell-off to continued delays in the US CLARITY Act, prolonging regulatory uncertainty, alongside concerns about large holders offloading positions.

Ethereum-based funds led the outflows with US$555 million, while Bitcoin products saw US$460 million leave.

Hong Kong moves to unlock insurance capital for crypto investments

Hong Kong’s Insurance Authority has proposed new rules that would allow licensed insurers to invest in cryptocurrencies and related infrastructure, potentially unlocking billions in capital.

According to a Bloomberg report, insurers under the proposed framework would face a 100 percent “risk charge” on direct crypto holdings, meaning a dollar of capital must be set aside for every dollar invested. Stablecoins pegged to fiat would attract lower risk charges.

The initiative aims to attract institutional investors while maintaining prudential safeguards against crypto volatility.

Public consultation on the draft rules is scheduled for February through April 2025, with formal legislative submissions expected later in the year.

Binance allowed high-risk accounts post-plea deal, FT reports

Binance reportedly continued to permit suspicious accounts to operate after its US$4.3 billion U.S. plea agreement in 2023, according to a Financial Times investigation.

Internal files reviewed by the FT showed accounts linked to terror financing networks, improbable login patterns, and failed identity checks remained active, moving billions of dollars in crypto.

One account from Venezuela moved US$93 million, with portions connected to networks tied to Iran and Hezbollah.