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 tip 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% probability of a 25 foundation level rate of interest reduce on the US Federal Reserve’s Dec. 10 assembly, up from 39% every week earlier than, according to the CME Group’s FedWatch device.
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, according to 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 establishing for a year-end reversal as liquidity improves and US financial coverage turns extra supportive following the tip of the document authorities shutdown.
Enhancing market circumstances shall be pushed by the growing liquidity, which has already returned $70 billion into markets for the reason that finish of the US government shutdown, with one other $300 billion anticipated to return over the subsequent 5 to 6 weeks because the Treasury Basic Account normalizes, in keeping 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 consider circumstances are constructing for markets to probably reverse current drawdowns,” wrote Ark in a Wednesday X post.
Crypto and AI liquidity squeeze could ease
The present “liquidity squeeze” limiting the upside of the cryptocurrency and synthetic intelligence markets is about to “reverse within the subsequent few weeks,” wrote Cathie Wooden, the CEO and chief funding officer of ARK Make investments, in a Thursday X post.
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 function as a safe-haven asset, the bullish value goal stays unchanged.
“The stablecoins have accelerated, taking a few of the function 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 internet, our bull value, which most individuals deal with, actually hasn’t modified.”
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 features taxes on crypto lending and liquidity pool customers till the underlying token is offered, which the native business has welcomed.
HM Revenue and Customs (HMRC) proposed on Wednesday a “no achieve, no loss” method to DeFi that will cowl lending out a token and receiving the identical kind again, borrowing preparations and transferring tokens right into a liquidity pool.
Taxable features or losses could 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 keeping with the proposal.
At present, when a consumer deposits funds right into a protocol, whatever the cause, the transfer could also be topic to capital features tax. Within the UK, capital features 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, said HMRC’s no achieve, no loss method is a “significant step ahead for UK DeFi customers who borrow stablecoins towards 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 at the DeFi platform Aave, said the change “would carry readability that DeFi transactions don’t set off tax till you really promote your tokens.”
“Different international locations going through related questions could need to be aware of HMRC’s method and the depth of analysis and consideration behind it,” she added.
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 “revolutionary 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 progress as crypto liquidity continues its structural migration onchain,” DWF Labs stated.
As a part of the announcement, DWF Labs managing partner Andrei Grachev emphasised the significance of constructing DeFi infrastructure “with actual utility” that may support institutional demand.
“DeFi is getting into its institutional part,” he stated, including: “We’re seeing actual demand for infrastructure that may deal with dimension, defend order stream, 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 assist in methods equivalent to “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.
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.
Nonetheless, the proposal covers solely the $8 million recovered by white hat hackers and inside rescue groups, whereas the practically $20 million retrieved by StakeWise shall be distributed individually to its customers.
The authors proposed that every one reimbursements needs to be non-socialized, that means that funds could be distributed solely to the particular liquidity swimming pools that misplaced the funds and paid out on a pro-rata foundation in keeping 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 completely different digital property, in keeping with the authors.
The Balancer hack was one of many “most sophisticated” attacks in 2025, in keeping with Deddy Lavid, the CEO of blockchain cybersecurity firm Cyvers, highlighting the necessity for crypto consumer security as safety threats proceed to evolve.
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 whilst 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 boost $212 million via 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 keeping with the corporate’s submitting with the US Securities and Change Fee.
The corporate plans to speculate 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 keeping with a Monday announcement shared with Cointelegraph.
“We see prediction markets as some of the thrilling rising sectors within the blockchain area,” with “distinctive” long-term progress potential, Shai Novik, government chairman at Enlivex Therapeutics, informed Cointelegraph.
“By getting into now, we profit from a first-mover benefit in a essentially robust class.”
When requested concerning the cause 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.
DeFi market overview
In accordance with knowledge from Cointelegraph Markets Pro 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 largest winner, adopted by the Layer-1 blockchain Kaspa’s (KAS) token, up 39% in the course of 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 schooling relating to this dynamically advancing area.
