Global Markets Mixed Ahead of Bumper Central-Bank Week

At first glance, XRP's on-chain payment volume declining to almost zero levels appears concerning, but the background is more important than the headline. At the moment, timing market mechanics and the source of liquidity–or lack thereof–are more important than XRP's structural flaws.

XRP is still moving down

After failing to recover important moving averages, XRP is still stuck in a wider declining channel on the price side. With the 200-day serving as far-off overhead resistance, the asset stays below its 50-day and 100-day averages. Instead of being impulsive, this keeps price action constrained and responsive. Chart by TradingView">

Momentum indicators show this reluctance: the RSI is in the low 40s, not oversold, but obviously weak. The price is weak, but not broken, to put it briefly.

The XRP Ledger payments volume chart, which displays activity collapsing toward zero, is the more perplexing signal. This is the point at which many people make incorrect assumptions. The decline does not indicate that XRP use has abruptly stopped or that the network is dead. 

The weekend effect associated with institutional and ETF-related activity is the primary driver. The recent volume expansions of XRP have been significantly impacted by the U.S.-based engagement, especially via regulated platforms like Coinbase. It's important because in the U.S. the way that markets function varies throughout the week.

Liquidity is suspended

Over the weekend, ETF-related flows, institutional desks, and numerous compliance-focused participants essentially stopped or reduced their activity. On-chain payment volume can quickly dry up once those players leave, particularly if retail isn't making up for it. This dynamic explains why the volume of payments falls, but the price does not. Liquidity has been suspended, not eliminated.

Similar declines have historically happened during times when institutional demand momentarily vanished, only to sharply reappear after traditional markets reopened. If ETF-related flows and U-return during weekday sessions, what should investors anticipate?

The US Securities and Exchange Commission is seeking public Feedback to decide whether Nasdaq can list and trade tokenized stocks. The move comes as regulators closely examine how blockchain-based assets could fit into existing market rules.

If approved, blockchain-based shares could trade like regular stocks, offering faster and cheaper settlements. 

SEC Seeks Feedback On Nasdaq Tokenized Securities Plan

According to the SEC filing on Nasdaq’s rule change, the SEC has asked for public Feedback to decide whether Nasdaq should be allowed to list and trade securities in tokenized form. 

This marks the start of a deeper review process covering legal, technical, and policy issues.

Under Nasdaq’s plan, tokenized stocks and exchange-traded products would trade alongside traditional shares. Both would use the same order book, offer the same investor rights, and settle through the DTCC, while blockchain technology improves efficiency.

A key example of this shift is Galaxy Digital, which recently became the first Nasdaq-listed company to tokenize its stock on Solana, showing how traditional finance and blockchain are merging.

Industry Reactions Remain Mixed

Market participants have shown mixed responses to the proposal. Groups like the Securities Industry and Financial Markets Association support the plan, saying tokenization can improve how markets work.

At the same time, the US Commodity Futures Trading Commission has approved a test program that allows tokenized assets to be used as collateral, showing growing acceptance.

However, firms like Ondo Finance and Cboe Global Markets have opposed the idea. They want the SEC to wait until DTCC clearly explains how tokenized trades will be settled, since all such trades would still depend on DTCC systems.

DTCC Approval Strengthens Tokenization Push

In a related development, the SEC recently issued a no-action letter to the Depository Trust Company, part of DTCC, allowing it to tokenize certain custody assets. This decision is seen as a critical building block, as any tokenized trades on Nasdaq would still need to clear and settle through DTCC systems.

Meanwhile, the CFTC now allows tokenized bitcoin, ether, and USDC as derivatives collateral. 

Banks like JPMorgan and BMW are testing on-chain transactions, showing tokenization can make trading faster, cheaper, and available 24/7 despite some challenges.

Base creator Jesse Pollak is facing growing criticism after publicly promoting what appeared to be a meme token linked to rapper Soulja Boy.

This case reignites long-standing concerns about celebrity involvement in speculative crypto projects.

Base Exec Jesse Pollak Faces Backlash After Promoting Soulja Boy–Linked Meme Token

A day later, Pollak appeared to amplify the message while positioning Base, Coinbase’s Ethereum Layer‑2 network, as a new creator-focused monetization layer.

With this remark, Jesse Pollak framed on-chain tools as a superior alternative to traditional social platforms.

The situation escalated when Pollak directly replied to Soulja Boy. The crypto executive stated that he had just backed Soulja Boy on Base and had “instantly earned,” describing the dynamic as “new internet” behavior.

Notably, Pollak did not explicitly promote a specific token by name. Nonetheless, many users interpreted the exchange as an endorsement of a Soulja Boy–linked meme token and, more broadly, of the rapper’s crypto activity.

ZachXBT Calls Out Soulja Boy’s Crypto History

That perception triggered a swift response from blockchain investigator ZachXBT. The sleuth publicly questioned Pollak’s decision to engage with Soulja Boy at all.

ZachXBT pointed to research he published in April 2023 documenting what he described as a pattern of exploitative behavior.

According to that investigation, Soulja Boy was involved in 73 crypto promotions and 16 NFT launches. Many allegedly ended in collapses, abandoned projects, or rug pulls.

The research detailed repeated instances in which promoted tokens lost value shortly after heavy marketing, followed by the deletion of promotional posts.

The investigator also highlighted alleged regulatory and legal issues surrounding the rapper’s past activity. Among them are past SEC charges related to Tron promotions and a lawsuit connected to SafeMoon.

Beyond tokens, the research described numerous NFT drops that advertised future utility but were later abandoned, with some collections reportedly removed from marketplaces due to concerns over intellectual property.

For critics, the issue extends beyond any single token. They argue that when prominent builders like Pollak, who plays a key role in shaping Base’s public image, engage with controversial figures, it risks undermining trust in the broader ecosystem.

Base has positioned itself as a mainstream-friendly, compliant Layer‑2 network backed by Coinbase, making reputational risk particularly sensitive.

The episode has reignited a familiar debate in crypto. Responsibility lies when influential developers amplify celebrity-driven projects with troubled track records.

Supporters of open networks argue that permissionless systems should not police who can build or promote on‑chain.

Critics counter that visibility from senior ecosystem leaders functions as implicit validation, especially for newcomers.

The backlash facing Pollak highlights the growing scrutiny on how major platforms balance openness with due diligence. It also shows how quickly past controversies resurface when trust is at stake. This is as crypto once again experiments with creator monetization and meme-driven distribution.

The Russell 2000 Value index has officially surged to a new all-time high (ATH), reigniting debate across financial markets about what this milestone means for Bitcoin and the broader crypto market.

The move highlights a renewed appetite for risk assets, but cracks beneath the surface suggest the signal may not be as straightforward as past cycles.

Russell 2000 Hits New All-Time High — Is Crypto Next?

Market commentator Kevin Gordon highlighted the breakout this week, noting that the Russell 2000 Value is “soaring to a new all-time high.” However, the Head of Macro Research and Strategy at Schwab Center for Financial Research also cautioned that past performance offers no guarantees.

Still, for crypto traders, the development is difficult to ignore. Historically, strength in small-cap equities has often coincided with bullish phases for Bitcoin and altcoins.

The Russell 2000, which tracks approximately 2,000 US small-cap companies, is widely regarded as a gauge of investor risk appetite. Unlike the S&P 500’s large-cap dominance, the Russell 2000 tends to outperform when investors rotate toward higher-risk, higher-reward assets. Notably, this dynamic closely mirrors behavior in crypto markets.

Earlier this month, BeInCrypto reported that the index’s decisive break above long-term resistance marked a classic “risk-on” signal.

In previous cycles, such breakouts have preceded major crypto rallies. According to The Bitcoin Vector, an institutional research report by Swissblock, a similar setup in late 2020 saw the Russell 2000 turn prior resistance into support, after which Bitcoin surged roughly 380%.

Other analysts echo that view, with RogueMacro pointing out that in the three prior instances where the Russell 2000 reached new highs, Bitcoin followed with its own breakout.

Ash Crypto went further, arguing that the index’s latest ATH has historically been followed by strength in Ethereum as well.

Altcoins May Stand to Benefit Even More

Analyst Cryptocium highlighted a recurring pattern where the total altcoin market capitalization (excluding Bitcoin and Ethereum) tends to surge after the iShares Russell 2000 ETF breaks above prior highs, a phenomenon observed in both 2017 and 2021.

If the correlation holds, some traders are already looking ahead to a potential altcoin boom in 2026.

However, not everyone is convinced the rally paints a clean bullish picture. Duality Research noted that despite the index’s rise, small-cap ETFs have seen roughly $19.5 billion in net outflows this year. This represents a sharp contrast to previous rallies, which were supported by strong capital inflows.

Fundamental data also raises red flags. According to The Kobeissi Letter, approximately 40% of companies in the Russell 2000 reported negative trailing 12-month earnings in Q3 2025, at near-record levels and comparable to post–financial crisis peaks.

The figure has more than doubled since 2007, indicating a significant structural weakness within the small-cap segment.

Responding to comparisons between altcoins and the Russell 2000, investors caution that timing matters more than correlation.

For crypto investors, the Russell 2000’s new ATH is a compelling signal, but not a guarantee.

While history suggests upside potential for Bitcoin and altcoins, underlying fragilities in small-cap fundamentals could still complicate the narrative if risk-on sentiment fades.

Bitcoin price is trading near $89,700, almost flat on the day and down roughly 2% over the past week. On the surface, price action looks weak. Under the hood, something more interesting is happening.

Large Bitcoin holders are quietly stepping back. Whale support is fading, with on-chain data showing sustained distribution over the past few weeks. Yet despite this, Bitcoin has failed to break down. That resilience matters because a separate on-chain signal now suggests selling pressure may be running out, despite the whale indifference.

Whales Are Selling, but Overall Pressure May Be Nearing Exhaustion

Bitcoin’s whale address data shows clear weakness. The 30-day change in whale addresses holding 1,000–10,000 BTC has dropped to −72, its lowest level since late November. The total whale count is also sitting near monthly lows. This confirms that large holders have been reducing exposure rather than accumulating.

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Do note that these whales are mostly rotating into ETH, which shows more optimism for the second-largest crypto.

Normally, that kind of behavior leads to deeper pullbacks. This time, it hasn’t.

One reason may be the Bitcoin Seller Exhaustion Constant, a Glassnode metric that combines loss-taking behavior with price volatility. It highlights periods where many sellers are underwater, but volatility stays low. Historically, this combination appears near low-risk local BTC price bottoms.

The metric currently sits near 0.019, a level last seen around April 5, when Bitcoin traded near $83,500. Over the following six weeks, the price rallied more than 33%, peaking near $111,600. Today’s reading is slightly lower, placing it firmly within the same historical exhaustion zone.

This does not guarantee a rally. It does suggest that downside risk is shrinking.

Bitcoin Price Levels That Decide the Next Move

Despite whale selling, Bitcoin continues to hold above $89,250, a key support zone. As long as this level holds on daily closes, bears struggle to gain control.

If Bitcoin reclaims $91,320, momentum improves quickly. That opens the door to $94,660, where the prior supply sits. A clean break there would shift market structure back in favor of bulls.

The invalidation is clear. A daily close below $89,250 weakens the exhaustion thesis and exposes downside toward $87,570 and $85,900.

The UK Treasury plans to enact rules by 2027 to regulate crypto assets under the same framework as traditional financial products.

The upcoming legislation will impose a set of standards overseen by the Financial Conduct Authority, according to a report from The Guardian. By taking this action, the UK government aims to improve transparency in the crypto sector, making it easier to identify suspicious transactions, enforce sanctions, and hold firms responsible.

This comes after UK lawmakers passed the Property (Digital Assets etc.) Act 2025 earlier this month, which established digital assets as a legally recognized form of property.

“By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high-skilled jobs here in the UK, while giving millions strong consumer protections, and locking dodgy actors out of the UK market," Chancellor Rachel Reeves reportedly said.

The UK currently requires that crypto companies register with the FCA in compliance with the agency's anti-money laundering and counter-terrorist financing obligations. This includes know-your-customer due diligence and the obligation to report suspicious transactions.

Consensys Senior Counsel and Director of Global Regulatory Matters Bill Hughes previously told The Block that the UK's "heavy-handed" approach to crypto regulation has cost its position as a global crypto hub to the U.S., which has taken a friendlier approach to digital assets. "Deciding that everything in crypto is a financial instrument subject to all the applicable rules really hampers UK competitiveness," Hughes said. 

Meanwhile, the FCA is also ramping up efforts to promote and regulate sterling-pegged stablecoins. In a recent letter to Prime Minister Keir Starmer, FCA Chief Executive Nikhil Rathi said the agency will prioritize enabling local firms to experiment with stablecoin payments in 2026, based on a regulatory sandbox it opened earlier this year.

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