- Sebastjan Bele
- Updated: December 4, 2025
- Reading time: 6 min
BoJ Hints Rate Hikes, Vanguard U-Turn & Larry Fink Bullish on Tokenisation
Bitcoin recovered from its drop to $84K earlier this week after the Bank of Japan hinted at rate hikes and is now trading around $93K. Ethereum also bounced back, climbing to $3,200.
In other news, the Fusaka rollout kicked off Ethereum’s new twice-a-year hard-fork schedule. Vanguard made a complete U-turn on crypto and will begin listing ETFs and mutual funds for Bitcoin, Ethereum, Solana, and XRP. Larry Fink, BlackRock CEO, said tokenisation today is where the internet was in 1996, while Bank of America is now recommending a 1–4% crypto allocation for clients. Kalshi raised $1B at an $11B valuation, doubling its valuation in under two months.
On the policy front, markets strongly favour a 25 bps cut, with Polymarket giving it a 94% chance, and there is a 71% probability that President Trump will appoint Kevin Hassett as the next Fed Chair. The UK also passed a law recognizing digital assets as a third category of property, marking a major step forward in legal clarity for the sector.
News
- Vanguard reverses stance and begins listing Bitcoin and other crypto ETFs
- Larry Fink and Rob Goldstein on how tokenisation could transform finance
- Bank of America says wealth clients may allocate up to 4% to crypto
- Kalshi raises $1B at $11B valuation, doubling value in under two months
- Bank of Japan hints rate hikes after yen weakness
- UK passes new law recognizing crypto as a third category of property
- Polymarket begins opening U.S. app to users on the waitlist
- Ethereum’s Fusaka rollout kicks off twice-yearly hard-fork schedule
- CryptoQuant outlines strategy for navigating a potential Bitcoin bear market tied to U.S. dollar reserves
- Harvard alumni–founded Ostium raises $24M to scale onchain perpetuals for RWAs
Table of Contents
Markets
Best Performers
A mixed bag this week with modest gains across the board. No clear standout, as tokens like MYX ($MYX), Sky ($SKY), Telcoin ($TEL), Quant ($QNT), and ($PUMP) posted steady but unspectacular performance.
Sector Performance
According to GMCI, the GMCI 30, which tracks the top 30 cryptocurrencies, is up 1.92% 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: +2.28%
- Layer 2: –2.25%
- DeFi: +1.93%
- AI: -2.84%
- Gaming: -2.46%
- Meme: 0.76%
US Spot ETF Balances
US Bitcoin Spot ETFs
Total Assets Under Management (AUM) = $125.26 Billion
Weekly Inflows = $4.19 Billion
US Ethereum Spot ETFs
Total Assets Under Management (AUM) = $17.82 Billion
Weekly Inflows = $430 Million
*The data for BTC / ETH ETFs can vary, so we use Coinglass as our source.
Market Commentary
Bitcoin
Last week we noted that $92K would be the first real trouble area for $BTC on its way up. Price was initially rejected there, especially after the Japan interest rate headlines, but buyers stepped in and pushed BTC b above this weekly resistance.
BTC is now trading above $92K, and a weekly close that flips this level into support would be a strong foundation for targeting the next major resistance at $104K.
That being said, the macro environment still needs to stay supportive for the next leg higher.
Ethereum
Ethereum’s weekly support at $2,900 held, and $ETH is now trading around $3,200. On the daily timeframe, price action looks constructive, with a higher low and higher high now confirmed.
The next trouble area sits at monthly resistance around $3,400, which will be the key level to watch for continuation.
Bitcoin dominance remains the steady at 58.7 (+0.1% weekly).
In traditional markets:
- S&P 500 up 0.68%
- NASDAQ down 1.40%
- Gold up 0.80%
The total crypto market cap stands at $3.18 trillion, up roughly 1.92% from $3.12 trillion. The Fear & Greed Index is at 26 (Fear), an improvement from last week’s 22 (Extreme Fear), but sentiment is still remaining risk-off.
What's Next?
All attention is currently on Japan. The yen carry trade has effectively ended and the Bank of Japan is signaling potential rate hikes. Markets reacted on Monday, including crypto, not because of a fundamental shift but because liquidity is thin and any macro shock creates outsized moves when the market cannot absorb pressure.
For now investors still prefer gold over Bitcoin, which means BTC is not yet behaving as a safe haven. Leverage has been flushed out and both basis and funding have fully reset, while spot liquidity handled the flows reasonably well.
The core issue remains liquidity. The recent drops were driven more by a lack of liquidity than by a structural break. At the same time we are seeing new institutions stepping into crypto, a Fed cut that is supportive although likely priced in, and both Japan and the US preparing additional stimulus. Once liquidity returns we expect markets to move higher.
December is packed with macro events and each of them can shift sentiment, so this month will set the tone for the start of 2026.
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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