This week, cryptocurrency markets staged a long-awaited restoration, following 4 consecutive weeks of draw back momentum.
Bitcoin’s (BTC) worth reclaimed the $90,000 psychological mark on Wednesday, bringing some much-needed reduction for Bitcoin exchange-traded fund (ETF) holders, who had been as soon as once more again in revenue as BTC traded above the important thing $89,600 flow-weighted value foundation of ETF patrons.
Bolstering investor sentiment, Cathie Wooden, the CEO and chief funding officer of ARK Make investments, mentioned the corporate’s $1.5 million Bitcoin bull market worth prediction remained unchanged, pointing to billions in returning liquidity following the tip of the US authorities shutdown.
The crypto market restoration adopted a pointy enhance in expectations of rate of interest cuts within the US, with odds rising by 46% in per week. Markets are pricing in an 85% likelihood of a 25 foundation level rate of interest lower on the US Federal Reserve’s Dec. 10 assembly, up from 39% per week earlier than, based on the CME Group’s FedWatch device.
Nevertheless, Bitcoin continues to be dealing with the worst November in seven years, because the world’s first cryptocurrency is down about 17% on the month-to-month chart, regardless of the month averaging 41% historic Bitcoin returns, based on blockchain knowledge supplier CoinGlass.
Cathie Wooden says ARK’s $1.5 million Bitcoin bull worth hasn’t modified as markets eye rally
Equities and cryptocurrency markets could also be establishing for a year-end reversal as liquidity improves and US financial coverage turns extra supportive following the tip of the report authorities shutdown.
Enhancing market circumstances will probably be pushed by the rising liquidity, which has already returned $70 billion into markets for the reason that finish of the US authorities shutdown, with one other $300 billion anticipated to return over the subsequent 5 to 6 weeks because the Treasury Normal Account normalizes, based on funding administration firm ARK Make investments.
One other potential catalyst will arrive on Dec. 1, when the US Federal Reserve is scheduled to finish its quantitative tightening program and pivot towards quantitative easing, a shift that includes bond-buying to decrease borrowing prices and stimulate financial exercise.
“With liquidity returning, quantitative tightening (QT) ending December 1st, and financial coverage turning supportive, we imagine circumstances are constructing for markets to doubtlessly reverse latest drawdowns,” wrote Ark in a Wednesday X submit.
Crypto and AI liquidity squeeze could ease
The present “liquidity squeeze” limiting the upside of the cryptocurrency and synthetic intelligence markets is about to “reverse within the subsequent few weeks,” wrote Cathie Wooden, the CEO and chief funding officer of ARK Make investments, in a Thursday X submit.
Earlier in April, ARK Make investments predicted a 2030 Bitcoin (BTC) worth goal of $1.5 million within the firm’s “bull case,” and a $300,000 worth goal within the “bear case.”
Regardless of the latest crypto market correction and stablecoins subtracting from Bitcoin’s function as a safe-haven asset, the bullish worth goal stays unchanged.
“The stablecoins have accelerated, taking a number of the function away from Bitcoin that we anticipated,” however the “gold worth appreciation has been far larger than we anticipated,” defined Wooden throughout a webinar on Monday, including:
“So web, our bull worth, which most individuals give attention to, actually hasn’t modified.”
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UK takes “significant step ahead” with proposed DeFi tax overhaul
The UK has floated a brand new tax framework that eases the burden on decentralized finance (DeFi) customers, with deferred capital good points taxes on crypto lending and liquidity pool customers till the underlying token is offered, which the native trade has welcomed.
HM Income and Customs (HMRC) proposed on Wednesday a “no acquire, no loss” method to DeFi that might cowl lending out a token and receiving the identical kind again, borrowing preparations and transferring tokens right into a liquidity pool.
Taxable good points or losses can be calculated when liquidity tokens are redeemed, primarily based on the variety of tokens a person receives again in comparison with the quantity they initially contributed, based on the proposal.
Presently, when a person deposits funds right into a protocol, whatever the purpose, the transfer could also be topic to capital good points tax. Within the UK, capital good points tax charges can differ from 18% and 32%, relying on the motion.
Tax framework a “constructive sign” for UK crypto regulation
Sian Morton, advertising lead on the crosschain funds system Relay protocol, mentioned HMRC’s no acquire, no loss method is a “significant step ahead for UK DeFi customers who borrow stablecoins in opposition to their crypto collateral, and strikes tax therapy nearer to the precise financial actuality of those interactions.”
“A constructive sign for the UK’s evolving stance on crypto regulation,” she added.
Maria Riivari, a lawyer on the DeFi platform Aave, mentioned the change “would deliver readability that DeFi transactions don’t set off tax till you actually promote your tokens.”
“Different international locations dealing with related questions could wish to pay attention to HMRC’s method and the depth of analysis and consideration behind it,” she added.
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DWF Labs launches $75 million fund for “institutional part” of DeFi
Crypto market maker and Web3 funding agency DWF Labs says it’s investing as much as $75 million in decentralized finance tasks that would assist institutional adoption.
The corporate shared its announcement through X on Wednesday, saying the fund will assist tasks with “modern worth” propositions that may scale to assist large-scale adoption.
“The initiative will goal blockchain tasks constructing dark-pool perpetual DEXs, decentralized cash markets, and fixed-income or yield-bearing asset merchandise, […] areas the agency believes are poised for main development as crypto liquidity continues its structural migration onchain,” DWF Labs mentioned.
As a part of the announcement, DWF Labs managing companion Andrei Grachev emphasised the significance of constructing DeFi infrastructure “with actual utility” that may assist institutional demand.
“DeFi is coming into its institutional part,” he mentioned, including: “We’re seeing actual demand for infrastructure that may deal with dimension, defend order movement, and generate sustainable yield.”
The fund will give attention to tasks constructed throughout Ethereum, BNB Sensible Chain and Solana, in addition to Coinbase’s Ethereum layer-2 Base.
Alongside capital injections, DWF Labs may also supply assist in methods comparable to “TVL and crypto liquidity provisioning, hands-on go-to-market technique and execution assist,” entry to partnered exchanges, market makers, infrastructure suppliers and establishments in crypto.
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Balancer group proposes plan to distribute funds recovered from hack
Two members of the Balancer protocol group submitted a proposal on Thursday outlining a distribution plan for a portion of the funds recovered from the protocol’s $116 million November exploit.
About $28 million from the $116 million heist was recovered by white hat hackers, inner rescuers and StakeWise — an Ether (ETH) liquid staking platform.
Nevertheless, the proposal covers solely the $8 million recovered by white hat hackers and inner rescue groups, whereas the almost $20 million retrieved by StakeWise will probably be distributed individually to its customers.
The authors proposed that each one reimbursements needs to be non-socialized, which means that funds can be distributed solely to the precise liquidity swimming pools that misplaced the funds and paid out on a pro-rata foundation based on every holder’s share within the liquidity pool, represented by Balancer Pool Tokens (BPT).
Reimbursements must also be paid in-kind, with victims of the hack receiving fee denominated within the tokens they misplaced to keep away from worth mismatches between totally different digital belongings, based on the authors.
The Balancer hack was one of many “most refined” assaults in 2025, based on Deddy Lavid, the CEO of blockchain cybersecurity firm Cyvers, highlighting the necessity for crypto person security as safety threats proceed to evolve.
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Nasdaq-listed Enlivex plans $212 million RAIN token play with ex-Italian PM onboard
A Nasdaq-listed biotech agency is elevating $212 million in a late-cycle pivot into crypto, planning to purchase the token of a decentralized prediction market whilst different digital-asset treasuries (DATs) battle to remain afloat.
Enlivex Therapeutics (ENLV), a clinical-stage macrophage reprogramming immunotherapy firm, mentioned on Monday it plans to lift $212 million by means of non-public funding in public fairness, promoting 212 million shares at $1 every. The value represents an 11.5% low cost to Friday’s shut, based on the corporate’s submitting with the US Securities and Trade Fee.
The corporate plans to take a position the vast majority of the $212 million in Rain (RAIN), the utility token behind the Rain decentralized prediction market on the Arbitrum community, marking the primary company technique centered on a prediction market token, based on a Monday announcement shared with Cointelegraph.
“We see prediction markets as probably the most thrilling rising sectors within the blockchain house,” with “distinctive” long-term development potential, Shai Novik, govt chairman at Enlivex Therapeutics, instructed Cointelegraph.
“By coming into now, we profit from a first-mover benefit in a essentially robust class.”
When requested in regards to the purpose for selecting the Rain protocol, Novik mentioned that its “decentralized” structure stood out, because it serves as a “scalable mannequin which helps international entry and development.”
Enlivex expects to finish its Rain purchases inside 30 days of the providing’s shut.
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DeFi market overview
In accordance with knowledge from Cointelegraph Markets Professional and TradingView, many of the 100 largest cryptocurrencies by market capitalization ended the week within the inexperienced.
The SPX6900 (SPX) memecoin rose over 43% because the week’s greatest winner, adopted by the Layer-1 blockchain Kaspa’s (KAS) token, up 39% through the previous week.
Thanks for studying our abstract of this week’s most impactful DeFi developments. Be a part of us subsequent Friday for extra tales, insights and training concerning this dynamically advancing house.