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 patrons.
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 every 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% every week earlier than, in accordance with the CME Group’s FedWatch software.
Nonetheless, 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 information 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 establishing for a year-end reversal as liquidity improves and US financial coverage turns extra supportive following the top of the report authorities shutdown.
Bettering market circumstances will probably 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 Basic 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 entails 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 probably reverse latest drawdowns,” wrote Ark in a Wednesday X submit.
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 submit.
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 latest 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 larger than we anticipated,” defined Wooden throughout a webinar on Monday, including:
“So internet, our bull value, which most individuals deal with, 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 positive aspects taxes on crypto lending and liquidity pool customers till the underlying token is bought, which the native trade has welcomed.
HM Income and Customs (HMRC) proposed on Wednesday a “no acquire, no loss” strategy to DeFi that will cowl lending out a token and receiving the identical sort again, borrowing preparations and transferring tokens right into a liquidity pool.
Taxable positive aspects or losses can be calculated when liquidity tokens are redeemed, based mostly on the variety of tokens a consumer receives again in comparison with the quantity they initially contributed, in accordance with the proposal.
Presently, when a consumer deposits funds right into a protocol, whatever the motive, the transfer could also be topic to capital positive aspects tax. Within the UK, capital positive aspects tax charges can differ from 18% and 32%, relying on the motion.
Tax framework a “optimistic sign” for UK crypto regulation
Sian Morton, advertising lead on the crosschain funds system Relay protocol, stated HMRC’s no acquire, no loss strategy 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 optimistic 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 really promote your tokens.”
“Different nations going through comparable questions might need to pay attention to 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 section” 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 help institutional adoption.
The corporate shared its announcement through X on Wednesday, saying the fund will help tasks with “progressive worth” propositions that may scale to help 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 progress as crypto liquidity continues its structural migration onchain,” DWF Labs stated.
As a part of the announcement, DWF Labs managing companion Andrei Grachev emphasised the significance of constructing DeFi infrastructure “with actual utility” that may help institutional demand.
“DeFi is getting into its institutional section,” he stated, including: “We’re seeing actual demand for infrastructure that may deal with measurement, defend order circulation, and generate sustainable yield.”
The fund will deal with tasks constructed throughout Ethereum, BNB Good Chain and Solana, in addition to Coinbase’s Ethereum layer-2 Base.
Alongside capital injections, DWF Labs can even supply help in methods resembling “TVL and crypto liquidity provisioning, hands-on go-to-market technique and execution help,” 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.
Nonetheless, 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 every one reimbursements ought to be non-socialized, that 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 in accordance with every holder’s share within the liquidity pool, represented by Balancer Pool Tokens (BPT).
Reimbursements also needs to be paid in-kind, with victims of the hack receiving cost denominated within the tokens they misplaced to keep away from value mismatches between completely different digital belongings, in accordance with the authors.
The Balancer hack was one of many “most subtle” assaults in 2025, in accordance with Deddy Lavid, the CEO of blockchain cybersecurity firm Cyvers, highlighting the necessity for crypto consumer 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) wrestle to remain afloat.
Enlivex Therapeutics (ENLV), a clinical-stage macrophage reprogramming immunotherapy firm, stated on Monday it plans to boost $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, in accordance with the corporate’s submitting with the US Securities and Alternate Fee.
The corporate plans to speculate 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, in accordance with a Monday announcement shared with Cointelegraph.
“We see prediction markets as probably the most thrilling rising sectors within the blockchain area,” with “distinctive” long-term progress potential, Shai Novik, government chairman at Enlivex Therapeutics, instructed Cointelegraph.
“By getting into now, we profit from a first-mover benefit in a essentially sturdy class.”
When requested concerning the motive for selecting the Rain protocol, Novik stated that its “decentralized” structure stood out, because it serves as a “scalable mannequin which helps world entry and progress.”
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 information from Cointelegraph Markets Professional and TradingView, a lot 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% throughout the previous week.
Thanks for studying our abstract of this week’s most impactful DeFi developments. Be part of us subsequent Friday for extra tales, insights and schooling relating to this dynamically advancing area.
