Global crypto derivatives trading surged to record levels in 2025, underscoring the market’s rapid institutionalization and growing complexity. Total derivatives volume reached $85.7 trillion, averaging $265 billion per day, according to new data from CoinGlass.The report highlights Binance’s continued dominance, the rising role of institutional hedging, and heightened systemic risks exposed by major liquidation events.Binance Captures Nearly 30% of Global Derivatives VolumeBinance remained the clear leader in crypto derivatives trading, processing $25.09 trillion in cumulative volume during 2025 — roughly 29.3% of all global derivatives activity.In practical terms, nearly $30 out of every $100 traded worldwide flowed through Binance, reinforcing its position as the industry’s primary liquidity hub.Each recorded between $8.2 trillion and $10.8 trillion in annual derivatives volume. Combined, these four platforms accounted for 62.3% of total global market share, illustrating a high level of concentration among top venues.Institutional Channels Drive Structural GrowthCoinGlass noted that derivatives growth in 2025 was increasingly driven by institutional pathways, including:Spot crypto ETFsOptions marketsCompliant futures productsThis shift helped accelerate activity on Chicago Mercantile Exchange (CME), which had already overtaken Binance in Bitcoin futures open interest in 2024 and further solidified its role in 2025.The derivatives market has steadily moved away from a purely retail-driven, high-leverage boom-and-bust model toward a more sophisticated mix of hedging, basis trading, and ETF-linked strategies.Open Interest Swings Reveal Rising Systemic RiskDespite explosive trading volumes, derivatives positioning remained volatile throughout the year.Global open interest fell to a 2025 low of ~$87 billion after Q1 deleveragingIt then surged to an all-time high of $235.9 billion on Oct. 7A sharp reset in early Q4 erased over $70 billion, roughly one-third of total open interest, in a rapid deleveraging eventEven after that shakeout, year-end open interest stood at $145.1 billion, still 17% higher than at the start of the year, highlighting the market’s growing scale despite repeated stress events.October Liquidation Shock Exposes Market “Plumbing” RisksThe most severe stress test arrived in early October. CoinGlass estimates total forced liquidations in 2025 at approximately $150 billion, with a significant portion concentrated over just two days.On Oct. 10 and Oct. 11, liquidations exceeded $19 billion, with 85%–90% coming from long positions, as traders betting on higher prices were rapidly wiped out.CoinGlass linked the crash to heightened macro risk following trade policy headlines, including Donald Trump’s announcement of 100% tariffs on Chinese imports, which pushed markets into a sharp “risk-off” regime.Derivatives Market Grows More Complex — and More FragileCoinGlass warned that while derivatives markets have matured, they have also become more interconnected and fragile.“Extreme events that erupted during 2025 imposed stress tests of unprecedented scale on existing margin mechanisms, liquidation rules, and cross-platform risk transmission pathways,” the report stated.Deeper leverage chains, tighter correlations, and faster cross-exchange contagion mean that while liquidity has expanded, tail risks have grown alongside it.Outlook: Bigger Market, Higher Stakes in 2026The $86 trillion surge in crypto derivatives volume marks a milestone for the industry, reflecting its evolution into a global financial market with institutional depth. At the same time, repeated liquidation shocks underscore the need for improved risk controls as leverage, complexity, and capital continue to scale.As crypto heads into 2026, derivatives will remain central to price discovery — but also the primary channel through which volatility and systemic stress propagate.

According to BlockBeats, the stablecoin market capitalization has exceeded $310 billion, marking a significant milestone with a 70% increase within a year. This growth is not merely another indicator of a cryptocurrency bubble but signifies a fundamental shift in the global use of digital assets. The report highlights several key drivers behind the rapid expansion of stablecoins, including the widespread adoption of global payment applications, institutional demand, and the development of decentralized finance (DeFi). Additionally, various industry analysis models predict that, with broader integration of stablecoins by major financial institutions, the supply could reach $2 trillion by 2028. These forecasts are based on the expectation that stablecoins will evolve from transaction-focused tools to a more general digital cash layer, applicable in areas such as e-commerce, inter-company payments, and embedded finance.

According to Odaily, crypto data analyst CyrilXBT shared on the X platform that Grayscale's Bitcoin (BTC) holdings have been decreasing following the approval of a Bitcoin ETF. This decline is attributed to outflows from the Grayscale Bitcoin Trust (GBTC) as investors are taking profits or reallocating their portfolios, causing BTC prices to fluctuate under supply pressure. In contrast, Grayscale's Ethereum (ETH) holdings have remained more stable in recent weeks, with significantly less selling pressure compared to BTC. This indicates stronger market confidence in holding ETH, possibly driven by expectations of an ETH ETF, staking rewards, and lower urgency to sell. Currently, BTC is in a distribution and rotation phase, while ETH is in a phase of patient waiting and positioning. During the period of BTC's selling pressure, Grayscale is viewing ETH as the next asymmetric investment opportunity.

@joshyote, a Solana ecosystem builder, posted on the X platform that in November 2025, Solana ecosystem DEXs surpassed Binance for the first time in SOL-USD spot trading volume. According to Blockworks data, in the past three weeks, HumidiFi's SOL-USD spot trading volume has exceeded the combined volume of Binance and all CEXs, and its spreads are narrower than centralized exchanges. He believes that, at this stage, the Solana network is the best channel for purchasing SOL.

Bitcoin exchange-traded funds (ETFs) extended their losing streak into the Christmas holiday period, with U.S. investors emerging as the largest net sellers of Bitcoin amid tax-driven selling and derivatives expiry pressure.Data shows that institutional outflows remain heavy, even as analysts argue the move is seasonal rather than structural, keeping hopes alive for a post-holiday rebound.Bitcoin ETF Outflows Continue on Christmas EveAccording to data from Farside Investors, U.S. spot Bitcoin ETFs recorded $175.3 million in net outflows on Christmas Eve, despite the shortened U.S. trading session.That marked the fifth consecutive losing session, bringing total ETF outflows over the past five trading days to $825.7 million.Since Dec. 15, only one trading day — Dec. 17 — posted positive flows, when ETFs recorded $457.3 million in net inflows. Every other session has closed in the red.U.S. Investors Lead Selling PressureThe sustained ETF selling has coincided with persistent weakness during U.S. trading hours, reinforcing the narrative that American institutions are currently driving the sell-side.This trend is visible in the Coinbase Premium Index, which measures the price difference between BTC/USD on Coinbase and BTC/USDT on Binance. The index has remained negative for most of December, signaling weaker demand from U.S.-based investors.“U.S. is now the biggest seller of Bitcoin. Asia is now the biggest buyer,” said crypto analyst Ted Pillows, pointing to session-by-session return data showing stronger performance during Asian trading hours.Tax Loss Harvesting and Options Expiry BlamedMarket participants largely attribute the ETF drawdown to year-end tax loss harvesting and the impact of a major quarterly options expiry.“Most of the selling is due to tax loss harvesting, which means it’ll be over in a week,” trader Alek wrote on X, adding that Friday’s record options expiry likely dampened institutional risk appetite.He noted that these pressures are temporary, predicting that institutional buyers will return once seasonal distortions fade.Bitcoin and Ether ETF Flows Still WeakThe weakness has not been limited to Bitcoin alone. Spot Ether ETFs have also struggled to attract consistent inflows, with both asset classes showing negative 30-day moving average netflows since early November.Despite this, traders caution against interpreting ETF outflows as a definitive market top.“Price stabilizes first, flows turn neutral, and only then do inflows return,” said trader BitBull, referring to both Bitcoin and Ether ETF behavior.“For now, the data suggests liquidity is inactive, not destroyed.”Institutions Expected to Return After HolidaysWhile near-term sentiment remains cautious, analysts broadly agree that ETF outflows reflect timing and positioning, not a collapse in institutional conviction.With tax considerations largely behind the market and derivatives pressure easing, ETF flows are expected to normalize in early 2026 — potentially setting the stage for renewed institutional demand.As Bitcoin continues to consolidate, investors will be watching closely for ETF netflows to turn positive, a signal many see as a prerequisite for the next sustained price move.

A recent quantitative report from Gate Research, titled "BTC and ETH Maintain Low-Level Consolidation, Moving Average Breakout Strategy Captures Structural Market Trends," indicates that the crypto market remains weak and volatile after a pullback, with declining capital participation and risk appetite. BTC and ETH rebounds are weak, with the long/short ratio and funding rates fluctuating repeatedly, indicating insufficient directional sentiment. In the derivatives market, deleveraging has not led to position replenishment, and leveraged inflows are limited. While long liquidation is relatively concentrated, it hasn't triggered a stampede, and overall market sentiment is cautious. The report points out that until there are clear signals of capital inflow and price-volume resonance, the short-term trend is likely to maintain a weak and volatile pattern, with localized liquidation pressure still warranting attention. Strategically, the moving average trend breakout model remains valuable in a weak and volatile environment. Assets such as DOGE, ADA, and SOL have shown a stepped cumulative rise after the moving averages shifted from convergence to divergence, but in a sharp, one-sided rally, the delayed confirmation may cause investors to miss the initial upward move. In contrast, Gate Quantitative Funds, with their core focus on neutral arbitrage and hedging strategies, emphasize drawdown control and return smoothness. They are more suitable as a stable underlying allocation for investment portfolios and complement trend-following strategies to improve overall risk-adjusted returns.

Crypto data analyst CyrilXBT wrote on the X platform that Grayscale's BTC holdings have been declining since the ETF was approved due to outflows from GBTC, indicating that investors are taking profits or rebalancing their portfolios, causing BTC prices to fluctuate under supply pressure. In contrast, Grayscale's ETH holdings have been more stable in recent weeks, with significantly less selling pressure than BTC. This suggests stronger market confidence in ETH, possibly driven by expectations of an ETH ETF, staking yields, and lower urgency to sell. Currently, BTC is in a distribution and rotation phase, while ETH is in a patient waiting and positioning phase. Grayscale is viewing ETH as the next asymmetric game opportunity while BTC digests selling pressure.

Crypto mergers and acquisitions reached a record $8.6 billion in 2025, marking the most active year on record for dealmaking in the digital asset industry, according to a report by the Financial Times.The surge in deal value reflects growing confidence among both crypto-native firms and traditional financial institutions, fueled by a more favorable regulatory environment in the United States under President Donald Trump.Deal Count and Value Soar in 2025According to the Financial Times, 267 crypto-related deals were completed in 2025 up to this week — an 18% increase compared to 2024. More notably, total deal value jumped nearly 300% year over year, rising from $2.17 billion in 2024 to $8.6 billion in 2025.Industry participants expect the momentum to carry into 2026 as regulatory clarity improves across major jurisdictions, including the U.S., UK, and European Union.Coinbase–Deribit Deal Leads Record-Breaking YearThe largest transaction of the year was Coinbase’s $2.9 billion acquisition of Deribit, the biggest acquisition ever recorded in the crypto sector.The deal underscores Coinbase’s push to expand into crypto derivatives and institutional trading infrastructure, particularly as options volumes continue to grow globally.Other major transactions in 2025 included:Kraken acquiring futures trading platform NinjaTrader for $1.5 billionRipple purchasing prime brokerage Hidden Road for $1.25 billionThese deals highlight strong demand for regulated trading platforms, derivatives infrastructure, and licensed financial entities.Crypto-Friendly U.S. Policy Boosts Deal ConfidenceAnalysts cited the Trump administration’s crypto-friendly stance as a key catalyst behind the M&A boom. The rollback of regulatory lawsuits and broader deregulation efforts have encouraged traditional financial institutions to enter the crypto space through acquisitions rather than building in-house capabilities.The shift has made crypto firms with licenses, compliance frameworks, and established infrastructure particularly attractive targets.Crypto IPO Activity Also ExplodesIn addition to M&A growth, crypto initial public offerings (IPOs) surged in 2025. The Financial Times reported that $14.6 billion was raised globally across 11 crypto IPOs, compared with just $310 million from four IPOs in 2024.Notable public listings included:Bullish (parent company of CoinDesk), raising $1.1 billionCircle Internet Group, issuer of USDC, raising over $1 billionGemini, raising $425 millionRegulatory Compliance Drives Acquisition StrategyLegal experts say regulatory compliance is becoming a central driver of crypto M&A activity.Diego Ballon Ossio, partner at law firm Clifford Chance, told the Financial Times that firms are actively acquiring companies for their regulatory licenses, particularly those aligned with the EU’s MiCA framework.Similarly, Charles Kerrigan, partner at CMS, said companies are willing to spend heavily to remain compliant under emerging U.S. and UK crypto regulations — often opting for acquisitions over lengthy licensing processes.Deal Boom Continues Despite Market PullbackThe record year for crypto dealmaking comes even as the broader market cooled in the second half of 2025.Bitcoin has fallen more than 30% from its October high above $126,000, recently trading just below $88,000. Despite the price decline, institutional appetite for long-term crypto infrastructure appears undiminished.Outlook: M&A Momentum Likely to Extend Into 2026With clearer regulatory frameworks taking shape and traditional finance increasingly engaging with digital assets, analysts expect crypto mergers, acquisitions, and IPO activity to remain elevated in 2026.The data suggests that institutional commitment to crypto is shifting from speculation toward permanent market integration, even amid short-term price volatility.

Bitcoin’s long-term market fundamentals remain exceptionally strong in 2025, even as prices and investor sentiment weakened toward the end of the year, according to Phong Le, CEO of Strategy.Speaking on the Coin Stories podcast on Tuesday, Le said Bitcoin’s recent price decline does little to change the broader investment thesis.“The fundamentals of the market this year for Bitcoin couldn’t be better,” Le said, adding that he pays little attention to short-term price fluctuations.Bitcoin Price Falls Nearly 30% From Record HighBitcoin reached an all-time high of $125,100 on Oct. 5, but has since dropped nearly 30%, trading around $87,700 at the time of publication, according to CoinMarketCap.The price weakness has coincided with a sharp deterioration in market sentiment. The Crypto Fear & Greed Index has remained in “Extreme Fear” territory since Dec. 12, reflecting persistent caution among retail investors.Despite the pullback, Le emphasized that Bitcoin’s price behavior is often difficult to interpret in the short term.“Bitcoin does what it does,” he said. “When you’re an investor, you think about the long term of the asset class.”Strategy Focuses on Long-Term Metrics Over Price VolatilityLe said Bitcoin investors should take a disciplined, data-driven approach when navigating short-term price movements.“Bitcoiners should be fairly methodical and mathematical about it,” he said.That philosophy underpins Strategy’s treasury strategy, which focuses on metrics such as mNAV — the company’s market value relative to the value of its Bitcoin holdings — rather than daily price swings.Strategy currently holds 671,268 BTC, worth approximately $58.6 billion, making it the largest publicly traded corporate Bitcoin holder. According to Saylor Tracker, the firm’s mNAV recently fell below 1.0, trading near 0.93, as the company’s stock declined alongside Bitcoin.U.S. Government Support Seen as Major Long-Term TailwindLooking beyond market cycles, Le highlighted what he described as unprecedented institutional and government support for Bitcoin in the United States.“The U.S. government is fully supportive of Bitcoin like it’s never been before,” he said.Le noted that both he and Strategy executive chairman Michael Saylor have been meeting with traditional banks in the U.S. and the UAE, where financial institutions are increasingly trying to understand how to integrate Bitcoin into their operations.“If you think about what’s happening with traditional powers of the world — the U.S. government, the U.S. banking system — they are all getting on board with Bitcoin,” Le said. “That’s extremely bullish for this year and 2026.”Strategic Bitcoin Reserve Still UnclearIn March, U.S. President Donald Trump signed an executive order formally establishing the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile. However, a detailed implementation plan has yet to be confirmed.Some analysts previously expected a clearer announcement in 2025. In September, Alex Thorn, head of firmwide research at Galaxy Digital, said there was “a strong chance” the U.S. government would officially announce the reserve this year.Long-Term Outlook Remains Bullish Despite Short-Term FearWhile Bitcoin’s price and sentiment have weakened into year-end, Strategy’s leadership remains focused on structural adoption, regulatory progress, and institutional alignment rather than short-term volatility.Le’s message to investors is clear: market fear may dominate headlines today, but Bitcoin’s underlying fundamentals continue to strengthen — potentially setting the stage for renewed growth beyond the current downturn.

Ethereum may struggle to reclaim record highs in 2026 as broader crypto market conditions remain fragile, according to prominent analyst Benjamin Cowen.Speaking on the Bankless podcast on Tuesday, Cowen said Ethereum’s outlook is closely tied to Bitcoin’s market structure, which he believes increasingly resembles a bear market.“If Bitcoin truly is in a bear market — which is what it feels like — it would be kind of hard for Ethereum to go up there,” Cowen said.His comments come amid growing debate over whether the crypto market has already peaked for the current cycle following sharp drawdowns since October.Ethereum Rally in 2026 Could Be a “Bull Trap”Cowen warned that even if Ethereum manages to reclaim its all-time high of $4,878, last reached in August, such a move may not be sustainable.“If Ethereum does get back to all-time highs in 2026, I’d be worried that it’s just a bull trap,” Cowen said, suggesting a sharp reversal could follow.He added that a failed breakout could send Ether back toward the $2,000 level, reinforcing the idea that upside moves may be corrective rather than the start of a new bull phase.At the time of writing, Ether is trading near $2,900, meaning a return to its peak would require a rally of more than 40%.Ethereum’s Performance Hinges on Bitcoin’s Market CycleCowen’s caution aligns with a broader bearish narrative forming around Bitcoin. Veteran trader Peter Brandt recently projected that Bitcoin could fall as low as $60,000 by Q3 2026, reinforcing concerns that the current cycle may have already topped.Cowen emphasized that Ethereum would be the only altcoin he would even consider capable of retesting all-time highs under these conditions — and even that scenario remains uncertain.“The only altcoin I’m even considering this for is Ethereum. A lot of the other altcoins are kind of cooked at this point for the cycle,” he said.Other Analysts See Potential for Deeper DrawdownsSome firms are even more cautious. Fundstrat Global Advisors reportedly warned investors earlier this month about a potential “meaningful drawdown” in 2026, which could push Ether into the $1,800–$2,000 range.However, not all analysts agree with the bearish outlook. Crypto commentator Crypto With James argued on Dec. 16 that Ethereum is “not done yet,” suggesting a near-term push back toward record highs remains possible.Ethereum Faces a High-Stakes 2026With Bitcoin struggling to regain momentum and liquidity conditions tightening, Ethereum’s ability to reach new highs in 2026 may depend less on its own fundamentals and more on whether the broader crypto market can escape a prolonged downtrend.For now, analysts remain divided — but Cowen’s warning highlights a growing concern: any major ETH rally next year may come with elevated downside risk rather than a new cycle of sustained growth.

Kraken has officially launched the Krak Card, a Mastercard crypto debit card for residents living in the EU countries and the United Kingdom. The Krak card would allow users to spend more than 400 cryptocurrencies and fiat currencies seamlessly.

Trust Wallet confirmed a security incident affecting version 2.68 of its Chrome extension after users reported unauthorised wallet drains following a recent update. The company told users to disable the extension and upgrade immediately, saying its mobile app and other versions were not affected while the investigation continues.

Kyrgyzstan has taken another step toward embedding digital assets into its financial system after cryptocurrency exchange Binance listed the country’s first som-pegged stablecoin, a move that signals growing state-level confidence in blockchain-based payments and infrastructure.

A 23-year-old Brooklyn resident, Ronald Spektor, stands accused of orchestrating a sophisticated phishing scheme that drained $16 million from Coinbase users. Prosecutors say Spektor, using the online alias “lolimfeelingevil,” targeted unsuspecting victims by posing as an official Coinbase support agent, warning them that their crypto holdings were at risk of theft.

A Brazilian music project will turn real-time Bitcoin price changes into live orchestral performances using an algorithm to guide the instruments. The initiative has received government approval and funding through Brazil’s tax incentive programme to bring the concept to life in Brasília.

Ethena’s synthetic stablecoin USDe has suffered a sharp contraction since the Oct. 10 market crash, with roughly $8.3 billion exiting the protocol as investors reassessed the risks tied to leveraged and synthetic-backed designs.

Seven companies ran fake crypto platforms and WhatsApp investment clubs, tricking US investors out of over $14 million with false trading claims and AI-driven tips. Victims were pressured to pay extra fees to withdraw funds, and the stolen money was sent through overseas bank accounts and crypto wallets.

A South Korean man’s attempt to secure a lighter punishment for laundering funds through cryptocurrency has backfired dramatically, with an appeals court overturning his suspended sentence and sending him to prison for four years.

Trump Media & Technology Group bought 451 more Bitcoin, bringing its total holdings to 11,542 coins worth over $1 billion. The company is using Bitcoin as a long-term reserve and is expanding into crypto investments and related financial services.

Justin Sun has lost around $60 million after World Liberty Financial blacklisted his wallet, freezing his WLFI tokens following a $9 million transfer. The freeze has left him unable to access or trade his holdings, while the token’s price has dropped over 40% since September.