Is Jane Street Behind Bitcoin’s Daily Dumps? Chart Pattern Raises Big Questions

Bitcoin’s on-chain activity has shown a sharp slowdown since spot Bitcoin exchange-traded funds (ETFs) launched. While institutional inflows into these products have accelerated, the number of active BTC addresses has declined. As Wall Street embraces BTC exposure, the network’s grassroots participation appears to be undergoing a significant transformation.

In an X post, the CEO of SwanDesk, financial analyst Jacob King, pointed out that Bitcoin active addresses have been in a steady decline since the US spot BTC ETFs launched in January 2024, and the irony is obvious.

Why Retail Participation Shows Signs Of Fatigue

 For years, BTC maximalists have pushed for Wall Street adoption, believing institutional involvement would unlock the next wave of mass usage. Instead, on-chain participation has dropped sharply as retail lost interest.

King noted that these Bitcoiners have piled into the ETF for a quick, early FOMO bump, and then bailed, leaving behind a market where the asset is increasingly traded by proxy. According to King, ETF investing kills BTC’s core principles. While investors no longer hold or control their own assets as banks do, which is the very system BTC was designed to challenge, greed always beats ideology.

Market watcher Crypto Seth has revealed that the net inflows into BlackRock and Fidelity’s spot BTC ETFs have been relatively subdued since October 10, when the largest liquidation events happened. Seth believes that this might turn into a momentum reversal soon, as the US stock market is at 1% below new highs despite retail sentiment remaining stuck in extreme fear.

Seth also pointed out that the macro backdrop is shifting in BTC’s favor. This is because the Federal Reserve ended its Quantitative Tightening (QT) program on December 1, 2025, wrapping up a multi-year effort that shaved nearly $3 trillion from the balance sheet since 2022. 

Since the US Fed rate is still at 4.00%, more interest rate cuts are on the horizon, which is higher than both Europe and China. The BlackRock iShares BTC Trust (IBIT), which was launched in January 2024, is currently the firm’s most profitable exchange-traded fund (ETF) based on annual fee revenue, despite being less than two years old.

Unlocking Bitcoin Without Compromising Its Core Principles

Bitcoin is seeing key initiatives that improve its ecosystem. Every market cycle that has promise to unlock Bitcoin for decentralized finance (DeFi), RioSwap is one of the few products built on infrastructure that was capable of unlocking it in a truly decentralized way. 

According to Mintlayer, this was powered by Mintlayer’s native HTLC architecture, as RioSwap introduces a Decentralized Exchange (DEX) that allows BTC to move directly into decentralized markets without wrapping, unbridging, and is fully in the user’s control. With the RioSwap testnet now live, Mintlayer sees this as the start of a new liquidity phase for BTC where the asset will become an active participant in the decentralized market on its own terms.

Funds that track a basket of cryptocurrencies are likely to rocket in popularity next year as investors look to get easy exposure to a broader range of digital assets, according to Bitwise’s investment chief Matt Hougan.

“Crypto index funds are going to be a big deal in 2026,” Hougan said in a note on Monday. “The market is getting more complex and the use cases are multiplying.”

He added that while the overall crypto market is poised to grow, it isn’t possible to predict which tokens will perform, so owning a fund that tracks the market is a “great place to start,” although it’s “not right for everyone.”

Many exchange-traded fund issuers, including Bitwise, offer funds that track multiple cryptocurrencies, drawing inspiration from indexes such as the S&P 500, which track the top 500 companies on US stock exchanges. 

Multi-crypto ETFs already exist, with some going live in the US earlier this year that hold crypto in proportion to each token’s market capitalization. However, these have seen relatively modest inflows as they largely hold Bitcoin (BTC), which currently dominates nearly 60% of the market, per CoinGecko.

“Buy the market” as crypto is unknowable

Hougan said that despite his experience and network of experts within crypto, he can’t say “with confidence which chain will win, or precisely how things will turn out.”

“At this stage of crypto’s development, I’d argue it’s unknowable,” he added. “Outcomes will be shaped by regulation, execution, macro conditions, the actions of a few key individuals, luck, and a hundred other variables.”

“Forecasting all of that correctly would require supernatural foresight.”

Crypto markets rallied from November 2024 to January through Donald Trump’s presidential election and inauguration and have remained elevated on his pro-crypto policies.

However, crypto has felt the negative effects of sweeping US tariffs and uncertainty over further interest rates cuts as traditional finance becomes more involved in the market.

“Given that uncertainty, my approach is simple: I buy the market,” Hougan said. “Specifically, I buy a market-cap-weighted crypto index fund.”

He added that crypto “will be far more important in 10 years than it is today,” and the market could grow up to 20 times over that time.

Hougan pointed to Securities and Exchange Commission chair Paul Atkins’ comment on Wednesday that the US financial system could embrace tokenization in a “couple of years.”

“Stablecoins will matter more. Tokenization will matter more. Bitcoin will matter more. And I think a dozen other major use cases will follow: prediction markets, decentralized finance (DeFi), privacy tech, digital identity,” Hougan said.

“I don’t want to risk picking the wrong chain,” he added. “Imagine correctly calling a market that goes up 100,000x—and still underperforming because you backed the wrong horse.”

“So I use a crypto index fund as the core of my portfolio,” Hougan said, “knowing that, however crypto evolves, I’ll own exposure to the potential winners.”

December 9, 2025 06:27:41 UTC

Solana Validator Count Drops Sharply, Sparking Debate

Community data shows Solana’s active validators have dropped from over 2,500 in March 2023 to about 800 today, a fall of nearly 68%. Some believe this is positive, saying weak or fake nodes were removed. Others, including infrastructure teams, argue many real validators quit due to high costs and technical pressure. Experts say the real risk to decentralization depends less on raw numbers and more on how evenly stake and voting power are spread among remaining validators.

December 9, 2025 06:24:46 UTC

Bitcoin ETFs See Outflows as Ethereum and XRP Attract Inflows

Data from SoSoValue shows that on December 8 (ET), U.S. spot Bitcoin ETFs recorded net outflows of $60.48 million. This came despite BlackRock’s IBIT leading the day with $28.76 million in inflows. In contrast, spot Ethereum ETFs saw $35.49 million in net inflows. Spot Solana ETFs added $1.18 million, while spot XRP ETFs posted strong inflows of $38.04 million, showing shifting investor interest across crypto funds.

December 9, 2025 05:58:36 UTC

Terra LUNA Surges as Volume Spikes, Speculation Drives Rally

Terra is seeing a sharp price rise as renewed market optimism and heavy trading push the token higher. Traders are betting on upcoming network upgrades, which has lifted short-term confidence. LUNA also broke important price levels, attracting momentum buyers and boosting activity on social platforms. Trading volume has jumped sharply, helping fuel fast moves. However, the rally looks mostly driven by speculation rather than long-term progress, so price swings are likely. Still, the move shows LUNA can react strongly when market focus returns.

December 9, 2025 05:58:36 UTC

Do Kwon Case Nears Verdict, Sending Signal to Crypto Market

Do Kwon’s case has reached a key moment. U.S. prosecutors are seeking a 12-year sentence, while his lawyers want five years, pointing to time already spent in custody. The final decision could shape how regulators worldwide respond to major crypto failures. Meanwhile, LUNA is seeing short-term price swings driven by speculation, not real progress. The bigger takeaway for crypto is clear: rules are tightening, accountability is rising, and legal outcomes will play a major role in future market trust.

December 9, 2025 05:54:19 UTC

Terra Price Jumps as Traders React to Key Events

Terra surged over 20% in the last 24 hours, driven by a mix of news and market signals. Traders are watching Do Kwon’s Dec 11 sentencing, which many see as closing the 2022 collapse chapter. LUNA also gained support from a major v2.18 network upgrade backed by Binance. On charts, the price broke a key level, with strong momentum indicators and a sharp rise in trading volume. Optimism is high, but post-event moves remain key to watch.

December 9, 2025 05:52:43 UTC

XRP’s Global Payments Push Gains Attention, Faces Competition

DAS Research says XRP and Ripple are shaping up as global payment infrastructure, offering fast and low-cost transfers with growing interest from institutions. However, they face tough competition from stablecoins and ongoing regulatory pressure. Future growth depends on RippleNet partnerships, the expansion of stablecoins like RLUSD, and possible ETF approvals. While adoption is rising, DAS notes that direct on-chain usage by banks is still limited, leaving real-world payment volume as a key test ahead.

December 9, 2025 05:51:30 UTC

CFTC Launches Pilot Allowing Bitcoin and Ethereum as Collateral

Acting CFTC Chairman Caroline Pham announced a new pilot program that allows Bitcoin, Ethereum, and USDC to be used as collateral in U.S. derivatives markets. The move supports the use of digital and tokenized assets in regulated trading. Along with this, the Market Participants Division withdrew Staff Advisory 20-34, saying it is no longer relevant. Officials said recent progress in digital assets and new laws like the GENIUS Act made the old guidance outdated.

December 9, 2025 05:43:10 UTC

Vitalik Buterin Says Ethereum Has Fixed a Key Network Weakness

Ethereum co-founder Vitalik Buterin said the Ethereum Foundation earlier paid too little attention to the network layer, focusing more on economics, consensus, and blocks. He admitted that peer-to-peer networking skills were lacking before. However, Vitalik said this has changed now. He highlighted the strong performance of PeerDAS as proof, praising Raul Victor and Ethereum Foundation contributors for their “heroic” work. The new roadmap aims for faster data sharing, better stability, and improved network privacy.

By Jason Chau

Crypto exchange HashKey Holdings is seeking to list in Hong Kong via an initial public offering that could give it a market valuation of US$2.47 billion.

Hong Kong-based HashKey, which says it is the largest digital asset manager in Asia in by asset size, plans to raise a maximum of about US$215 million.

It is the latest in a string of companies to raise funds in the city, which has become one of the world's busiest IPO hubs.

The offering also comes amid a flurry of activity in the sector in Asia, with major exchanges looking to expand in the region as digital-asset trading becomes more mainstream.

Earlier this week, Robinhood Markets said its preparing to enter Indonesia as it grows in Southeast Asia, and is pursuing a brokerage license in Singapore. Coinbase recently announced an investment in CoinDCX, a crypto exchange in India.

Regulatory activity in the financial hubs of Hong Kong and Singapore suggest wider adoption too.

Hong Kong has granted virtual asset trading licences to 11 operators since 2020, while Singapore has so far issued 36 major payment institution licences to digital asset platforms. The Singapore exchange also recently launched bitcoin and ethereum perpetual futures trading.

In a filing Wednesday, HashKey said it plans to issue 240.6 million shares at HK$5.95 to HK$6.95 each. At the top end of the range, that would give it a market capitalization of HK$19.21 billion.

HashKey is backed by venture capital firm Gaorong Ventures, an early investor in Chinese startups like Meituan and Pinduoduo. It has secured UBS and existing shareholder Fidelity as cornerstone investors.

The trading platform, which also develops blockchain technology, plans to use the IPO proceeds to invest in technology and infrastructure, and for market expansion, among other purposes.

Shares are expected to start trading on Dec. 17.

J.P. Morgan and Guotai Haitong are among the banks advising on HashKey's offering.

Write to Jason Chau at jason.chau@wsj.com

Shiba Inu , one of the leading meme cryptocurrencies, has experienced a lot of activity from "whales." Specifically, there have been more large transfers than on any day since June 6, according to the data provided by analytics platform Santiment. 

At the same time, the total amount of Shiba Inu held on exchanges increased by 1.06 trillion SHIB. This essentially means that a lot of coins are now available on exchanges (possibly for selling). 

Due to these factors, the token is likely to experience more volatility in the next few days, Santiment warns. 

Will SHIB regain its momentum?

According to CoinGecko data, SHIB is up by nearly 6% over the past 24 hours. The token's market cap is currently sitting just below the $5 billion mark. 

As reported by U.Today, a moderate relief rally could be in the cards for the popular meme coin, but traders should not anticipate a sharp price spike. 

There are at least 400,000 fewer Bitcoin on exchanges compared to the same time last year, in a positive sign for the market, according to the market intelligence platform Santiment. 

Over 403,000 Bitcoin (BTC) have moved off exchanges since Dec. 7, 2024, representing roughly 2% of the total supply, Santiment said in an X post on Monday, citing data from its sanbase dashboard.

Users often move their Bitcoin away from exchanges into cold storage wallets, which, in theory, makes it harder to sell and could signal long-term plans to hold onto it. 

“As Bitcoin's market value hovers around $90K, crypto’s top market cap continues to see its supply moving away from exchanges,” Santiment added.