This week, cryptocurrency markets staged a long-awaited restoration, following 4 consecutive weeks of draw back momentum.
Bitcoin’s (BTC) value reclaimed the $90,000 psychological mark on Wednesday, bringing some much-needed aid 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 price foundation of ETF consumers.
Bolstering investor sentiment, Cathie Wooden, the CEO and chief funding officer of ARK Make investments, stated the corporate’s $1.5 million Bitcoin bull market value prediction remained unchanged, pointing to billions in returning liquidity following the top of the US authorities shutdown.
The crypto market restoration adopted a pointy improve 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, in accordance with the CME Group’s FedWatch instrument.
Nevertheless, Bitcoin continues to be going through 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, in accordance with blockchain knowledge supplier CoinGlass.
Cathie Wooden says ARK’s $1.5 million Bitcoin bull value hasn’t modified as markets eye rally
Equities and cryptocurrency markets could also be organising for a year-end reversal as liquidity improves and US financial coverage turns extra supportive following the top of the document authorities shutdown.
Enhancing market situations will likely be pushed by the growing liquidity, which has already returned $70 billion into markets because the finish of the US authorities shutdown, with one other $300 billion anticipated to return over the following 5 to 6 weeks because the Treasury Normal Account normalizes, in accordance with 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 consider situations are constructing for markets to probably reverse current drawdowns,” wrote Ark in a Wednesday X publish.
Crypto and AI liquidity squeeze might ease
The present “liquidity squeeze” limiting the upside of the cryptocurrency and synthetic intelligence markets is ready to “reverse within the subsequent few weeks,” wrote Cathie Wooden, the CEO and chief funding officer of ARK Make investments, in a Thursday X publish.
Earlier in April, ARK Make investments predicted a 2030 Bitcoin (BTC) value goal of $1.5 million within the firm’s “bull case,” and a $300,000 value goal within the “bear case.”
Regardless of the current crypto market correction and stablecoins subtracting from Bitcoin’s position as a safe-haven asset, the bullish value goal stays unchanged.
“The stablecoins have accelerated, taking a few of the position away from Bitcoin that we anticipated,” however the “gold value appreciation has been far higher than we anticipated,” defined Wooden throughout a webinar on Monday, including:
“So web, our bull value, which most individuals concentrate on, 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 beneficial properties 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 achieve, no loss” strategy to DeFi that may cowl lending out a token and receiving the identical sort again, borrowing preparations and transferring tokens right into a liquidity pool.
Taxable beneficial properties 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, in accordance with the proposal.
At present, when a person deposits funds right into a protocol, whatever the motive, the transfer could also be topic to capital beneficial properties tax. Within the UK, capital beneficial properties tax charges can fluctuate 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, stated HMRC’s no achieve, no loss strategy is a “significant step ahead for UK DeFi customers who borrow stablecoins towards their crypto collateral, and strikes tax remedy 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, stated the change “would carry readability that DeFi transactions don’t set off tax till you actually promote your tokens.”
“Different international locations going through comparable questions might need to be aware of HMRC’s strategy 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 might assist institutional adoption.
The corporate shared its announcement through X on Wednesday, saying the fund will assist tasks with “progressive 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 stated.
As a part of the announcement, DWF Labs managing associate 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 stated, including: “We’re seeing actual demand for infrastructure that may deal with measurement, shield order move, and generate sustainable yield.”
The fund will concentrate on tasks constructed throughout Ethereum, BNB Good Chain and Solana, in addition to Coinbase’s Ethereum layer-2 Base.
Alongside capital injections, DWF Labs will even provide assist in methods resembling “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, inside rescuers and StakeWise — an Ether (ETH) liquid staking platform.
Nevertheless, the proposal covers solely the $8 million recovered by white hat hackers and inside rescue groups, whereas the almost $20 million retrieved by StakeWise will likely be distributed individually to its customers.
The authors proposed that each one reimbursements ought to be non-socialized, that means that funds can be distributed solely to the particular liquidity swimming pools that misplaced the funds and paid out on a pro-rata foundation in accordance with 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 cost denominated within the tokens they misplaced to keep away from value mismatches between totally different digital belongings, in accordance with the authors.
The Balancer hack was one of many “most refined” assaults in 2025, in accordance with 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 at the same time as different digital-asset treasuries (DATs) battle to remain afloat.
Enlivex Therapeutics (ENLV), a clinical-stage macrophage reprogramming immunotherapy firm, stated on Monday it plans to lift $212 million by way of non-public funding in public fairness, promoting 212 million shares at $1 every. The worth represents an 11.5% low cost to Friday’s shut, in accordance with the corporate’s submitting with the US Securities and Alternate Fee.
The corporate plans to take a position nearly all 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, in accordance with a Monday announcement shared with Cointelegraph.
“We see prediction markets as one of the crucial thrilling rising sectors within the blockchain area,” with “distinctive” long-term development potential, Shai Novik, government chairman at Enlivex Therapeutics, advised Cointelegraph.
“By coming into now, we profit from a first-mover benefit in a essentially sturdy class.”
When requested in regards to the motive for selecting the Rain protocol, Novik stated 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
Based on 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 relating to this dynamically advancing area.
