- Sebastjan Bele
- Updated: December 18, 2025
- Reading time: 6 min
Inflation at 2.7%, Coinbase Expands Into Stocks & BoJ Raises Rates
Markets continue to chop sideways, with Bitcoin ranging between $84K and $92K and Ethereum trading below $3K, reflecting a lack of conviction and thin liquidity.
In other news, Coinbase is making a major push beyond spot crypto, expanding into stock trading, prediction markets, Solana DEX trading, custom stablecoins, and a broader suite of financial products. Visa launched stablecoin settlement in the US using Circle’s USDC on Solana, while Ark Invest added more BitMine shares, continuing its exposure to crypto-linked equities.
On the policy front, President Trump is set to interview Fed Governor Christopher Waller as a potential next Fed Chair, and stated that the new chair would cut rates by a lot. The Bank of Japan is preparing to raise its short-term policy rate to 0.75% from 0.5%, adding pressure to global markets. Meanwhile, the SEC concluded its investigation into the Aave Protocol, and clarified that broker-dealers must maintain control of crypto private keys to comply with customer protection rules.
News
- Coinbase rolls out stock trading, prediction markets, and more in bid to become the “everything exchange”
- Bitcoin steady as Trump eyes new Fed Chair
- Bank of Japan set to take interest rates to 30-year high
- Cathie Wood’s Ark Invest buys more BitMine shares
- Visa launches stablecoin settlement in the US using Circle’s USDC on Solana
- Aave CEO says DeFi will win as SEC ends years-long probe
- SEC says broker-dealers must maintain control of crypto private keys
- Trump set to interview Fed Governor Christopher Waller for Fed Chair role
- Bitcoin traders brace for Bank of Japan rate hike amid crypto sell-off
- Juventus owner rejects Tether’s $1.2B offer, sending stock soaring
Table of Contents
Markets
Best Performers
A mixed bag this week with no dominant narrative, as gains were scattered across unrelated names. Notable movers included Audiera ($BEAT), Midnight ($NIGHT), Pippin ($PIPPIN), MemeCore ($M), and Monero ($XMR), with mostly modest upside rather than strong, theme-driven momentum.
Sector Performance
According to GMCI, the GMCI 30, which tracks the top 30 cryptocurrencies, is down 6.79% over the past week. The GMCI Mid Cap is down 1.68%, while GMCI Small Cap indices posted a loss of 2.58%. The rest of the sectors:
- Layer 1: -6.32%
- Layer 2: –6.67%
- DeFi: -11.61%
- AI: -17.65%
- Gaming: -15.14%
- Meme: -11.71%
US Spot ETF Balances
US Bitcoin Spot ETFs
Total Assets Under Management (AUM) = $125.26 Billion
Weekly Inflows = -$5.08 Billion
US Ethereum Spot ETFs
Total Assets Under Management (AUM) = $17.82 Billion
Weekly Inflows = -$990 Million
*The data for BTC / ETH ETFs can vary, so we use Coinglass as our source.
Market Commentary
Bitcoin
$BTC tested weekly resistance at $92K but failed to reclaim it and dropped to $85K. Choppy price action followed, with BTC printing a sharp $3K green candle on the 4H timeframe, only to erase those gains shortly after. Bitcoin is now trading around $87K.
The Bank of Japan decisioncontinues to play a key role in short term price movements. Overall, nothing has materially changed.
The macro environment still needs to remain supportive for Bitcoin to attempt the next leg higher.
Ethereum
As mentioned in the previous edition, $2,900 support held for $ETH, after which Ethereum moved up to test $3,400. However, it lacked the strength to break out, saw a strong rejection, and is now trading below weekly support. For now, $2,900–$3,400 defines the active range.
Just like Bitcoin and the broader market, the macro environment needs to remain supportive for Ethereum to attempt the next leg higher.
Bitcoin dominance increased to 59.3 (+0.6% weekly).
In traditional markets:
- S&P 500 down 2.60%
- NASDAQ down 4.12%
- Gold up 0.84%
The total crypto market cap stands at $2.93 trillion, down roughly 4.57% from $3.07 trillion. The Fear & Greed Index is at 17 (Extreme Fear), big drop from last week’s 26 (Fear).
What's Next?
The CPI report came in softer than expected, with November inflation at 2.7% YoY versus 3.1% expected, while U.S. core CPI slowed to 2.6% in November, the lowest level since March 2021. This is a bullish sign for risk assets and reinforces the broader disinflation trend.
On the other hand, the Bank of Japan’s rate hike to 0.75%, the highest level in three decades, remains a bearish overhang for crypto, adding uncertainty to global risk assets and liquidity expectations.
Futures markets continue to de risk, with open interest trending lower and funding rates near neutral. This signals a lack of speculative conviction rather than forced deleveraging. Leverage is no longer driving downside, but it is also not supporting upside. Although the expected Fed cut has already materialized, the crypto market appears somewhat exhausted following a series of macro events.
At present, capital within crypto is leaning toward risk off strategies, such as yield farming and parking funds in stablecoins. With no major macro catalysts expected into year end, we expect continued choppy price action and no clear directional trend in the near term.
Meme of the Week
We hope you enjoyed this week’s edition of Diary of a Market Maker! Stay tuned for more insights, updates, and market-moving highlights as we continue to keep you informed and entertained in the ever-evolving world of crypto.
In the meantime, follow us on LinkedIn and X (Twitter) for real-time updates and more!
Until next time, happy trading and stay ahead of the curve!
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment, or other professional advice. All opinions expressed herein are solely those of the author and do not represent the views or opinions of any entity with which the author may be associated. Investing in financial markets involves risk, including the potential loss of principal. Readers should perform their own research and consult with a licensed financial advisor before making any investment decisions. Past performance is not indicative of future results.
Jakob Brezigar
Jakob, an experienced specialist in the field of cryptocurrency market making, boasts an extensive international presence. With Orcabay, he has skillfully managed major operations and deals for a wide array of global stakeholders.
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