Ripple Wraps Up Acquisition of Stablecoin Firm Rail

Zcash ZEC is one of today’s most trending cryptocurrencies in the crypto market, jumping about 13% and trading around $460. The rally has pushed ZEC’s market cap above $7.5 billion, with trading volume surging over $1.14 billion in the past 24 hours. 

While overall cryptocurrencies are moving sideways and struggling to rally upwards, ZEC is outperforming them.

So, what’s behind this jump? Will it continue its rally or dip? 

Zcash Dynamic Fee Proposal Boosts Confidence

One of the main reasons ZEC is rising is the new dynamic fee proposal from the Zcash developer team. Developers and Shielded Labs propose to replace Zcash’s old static transaction fees with a dynamic fee market system, which sometimes causes high or unpredictable transaction costs.

The goal is to make transactions cheaper and smoother during busy times. This update has caught traders’ attention and is seen as a strong step forward for the project.

Strong Market Activity Boosts Institutional Interest

Another factor supporting ZEC’s rise is the jump in trading activity. Market data shows ZEC’s 24-hour volume surged by 26% to $1.14 billion, showing stronger interest from both retail and professional traders.

This growing activity has also encouraged more institutional attention. Cypherpunk Technologies has expanded its ZEC holdings, which has helped highlight the token’s long-term value.

On top of it, Cypherpunk added Zcash founder Zooko Wilcox as an advisor. 

Whale Activity Heavily Supports the Price

Interestingly, large holders and whale investors have also played a big role in today’s rise. On-chain data shows heavy accumulation, around $100 million worth of ZEC. Another big wallet increased its position from 31,000 to 45,000 ZEC, sending tokens to Hyperliquid to open long positions. 

This kind of buying reduces available supply and often pushes the price higher as demand grows.

Zcash ZEC Price Outlook

After this sudden rise, ZEC now sits right below a resistance area that has been difficult to cross in the past. According to trader Crypto Pulse, this zone has stopped several strong rallies before, each time sending the price lower.

If ZEC breaks above the $460 level, it could trigger a bigger rally toward the $600 level, which acted as an important area in earlier cycles. 

Bitcoin Price correction has triggered widespread uncertainty, but top analysts Anthony Pompliano and Raoul Pal say the market is far from breaking down. Instead, they argue the pullback is setting up one of the strongest bullish phases for BTC heading into 2025–2026.

Pompliano: “Huge Institutional Big Money Demand to Buy Bitcoin”

Crypto investor Anthony Pompliano says Bitcoin’s sharp dip is not a sign of weakness but a deliberate move by major institutions preparing for accumulation.

According to Pompliano, large players are pushing BTC lower to secure better entry points ahead of a major liquidity expansion.

Pompliano had previously predicted $150,000 by the end of February, and although he now admits the timeline may shift as “facts have changed,” his target remains unchanged.

Bitcoin Price To Rebound Soon 

A series of macro and structural factors are forming a strong support base for BTC’s next leg upward:

1. Deflationary Pressures Increasing

Oil, energy, housing, and food costs continue to decline. Analysts expect CPI to fall toward 2%–2.5% in 2025, improving risk sentiment.

2. Fed Interest Rate Cuts 

With inflation cooling, the Federal Reserve’s policy rate cuts are historically bullish for Bitcoin and other risk assets.

3. Institutional Accumulation Patterns

Large investors may be contributing to downside volatility, accumulating at lower prices before next year’s liquidity expansion.

Pompliano believes this “institutional pounce” will trigger Bitcoin’s next explosive move.

Raoul Pal Says “This Is a Correction, Not a Bear Market”

Macro expert Raoul Pal agrees that Bitcoin is not entering a bear cycle. He says the pullback is a normal correction in an ongoing bull market, and the old halving-cycle narrative is rapidly fading. Pal argues that global liquidity will be the dominant force moving markets in 2026.

According to Pal, several factors could trigger a significant surge in global liquidity, potentially boosting Bitcoin. These include large fiscal stimulus under the Trump administration, regulatory easing for banks through the Supplementary Leverage Ratio (SLR), a potential term repo program to stabilize funding markets, and a weaker U.S. dollar, historically a strong driver of Bitcoin rallies. If this thesis holds, Pal expects Bitcoin to show strong performance in January and February.

Pal also highlights the upcoming Clarity Act, which aims to provide regulatory certainty for digital assets. This, he says, could unlock new institutional demand and remove long-standing market uncertainty.

Pal believes the coming liquidity wave will mark the end of the traditional four-year halving cycle.

Altcoin Season Set for 2026

Pal says the altcoin season hasn’t started yet. Key triggers are the ISM Manufacturing Index rising above 50, signaling economic expansion.

Once that flips likely in 2026, he expects Bitcoin dominance to drop as investors rotate into smart-contract and high-beta altcoins.

FAQs

The Bitcoin dip is driven by institutional accumulation, allowing big investors to buy at lower prices before a major liquidity surge.

Yes, macro factors like cooling inflation, potential Fed rate cuts, and institutional demand suggest a strong rebound in 2025–2026.

No, experts see this as a normal correction within an ongoing bull market, not the start of a bearish cycle.

Global liquidity expansion, regulatory clarity, a weaker U.S. dollar, and possible fiscal stimulus could drive Bitcoin’s next surge.

Coinbase is set to make a major move in the crypto space by launching prediction markets and its own tokenized equities on December 17. The new offerings bring the exchange closer to its goal of becoming an all-in-one digital asset “everything app.” This expansion comes amid rising competition and growing global interest in tokenized financial assets.

Coinbase Aims for Full Vertical Integration

One of Coinbase’s most significant changes is its shift to issuing tokenized stocks directly, rather than relying on external partners. This gives the company more control over product design, compliance, and settlement, an important advantage as global regulators increase scrutiny of tokenized securities.

Rumors about Coinbase’s expansion have circulated for weeks after leaked screenshots showed prediction tools and tokenized equity sections inside the Coinbase app. The company has now confirmed that full details will be revealed through a livestream on December 17.

By combining prediction markets, tokenized securities, and crypto trading in one platform, Coinbase is signaling its ambition to build a complete digital asset ecosystem functioning like a next-generation brokerage, derivatives venue, and blockchain hub.

Exchanges Race to Lead the Tokenization Boom

Tokenization has quickly become the new battleground for competition. Robinhood and Kraken already offer tokenized U.S. stocks in select regions, while global trading of tokenized equities has jumped 32% in the past month, reaching $1.45 billion in transfer volume, according to rwa.xyz data.

As more traditional assets such as stocks, treasuries, and commodities move onto blockchains, major exchanges are racing to secure early dominance. Coinbase’s push is both a strategic defense and an attempt to capture market share as tokenization accelerates worldwide.

Prediction Markets Are Becoming a Core Financial Product

Prediction markets are also seeing strong growth, with users trading on outcomes related to elections, inflation, sports events, and global affairs. Gemini recently received CFTC approval to launch its Gemini Titan prediction platform in the U.S., Robinhood now supports Kalshi’s event contracts, and Crypto.com is expanding its presence in the sector through partnerships. Major trading firms, including Susquehanna, are also investing heavily in event-driven derivatives infrastructure.

Coinbase’s entry into prediction markets signals that they are becoming a mainstream financial instrument rather than a niche product.

Major Firms Are Competing to Build Full-Stack Crypto Ecosystems

Analyst Kartik Swaminathan notes that Coinbase’s upcoming rollout is part of a broader trend toward full vertical integration, where major companies control everything from wallets and trading platforms to layer-2 networks and real-world asset issuance.

He highlights that Robinhood, Kraken, Stripe, and Coinbase now operate increasingly complex financial stacks each positioning RWAs as the central pillar of their long-term strategy. Meanwhile, projects such as Ondo, Shift, and xStocks are expanding on BNB Chain, raising fresh questions about Binance’s future role in the tokenization race.

According to the analyst, the industry is heading toward a major competitive showdown, with every major platform pushing to dominate the full digital asset stack—where tokenized assets will play a defining role.

FAQs

Coinbase will issue tokenized stocks directly, giving users faster settlement, improved transparency, and tighter control over compliance.

Coinbase aims to offer a wider range of financial tools as prediction markets grow into mainstream products used for trading real-world events.

Investors gain access to more asset types—crypto, tokenized stocks, and event markets—all in one platform with unified tools and security.

The Commodity Futures Trading Commission has issued “no-action” letters to a group of prediction markets, exempting them from requirements related to swap data reporting and record-keeping regulations.

The CFTC’s Division of Market Oversight and the Division of Clearing and Risk won’t initiate enforcement action against several prediction market platforms for shirking certain recordkeeping demands, provided they follow other specific requirements, the agencies said in a statement on Thursday.

“The no-action letters apply only in narrow circumstances and are comparable to no-action letters issued for other similarly situated designated contract markets and derivatives clearing organizations,” they added.

The companies that received a no-action letter are Polymarket US, LedgerX, PredictIt and crypto exchange Gemini’s prediction markets arm, Gemini Titan.

The blockchain gaming sector is shifting to more sustainable economics and has improved sentiment and market maturity as it recalibrates its outlook, reported the Blockchain Game Alliance (BGA).

The Web3 gaming advocacy group said in its annual state of the industry report released on Wednesday that the sector is “moving beyond its speculative origins toward a more operationally disciplined, product-led future.”

In a survey of over 500 global blockchain gaming professionals, the level of optimism rebounded to 65.8% from its 2024 lows, with the focus shifting from token economics to sustainable revenue models. 

Growth is now anchored in delivering high-quality games, resilient revenue models, and payment infrastructure to support real-world commerce at scale, the report noted. 

On Thursday, Bitcoin (BTC) once again fell below the critical $90,000 mark, even after what many had anticipated to be a bullish event stemming from the US Federal Reserve’s (Fed) decision to cut rates by a quarter point. Analysts from Bull Theory note several factors contributing to this unexpected downturn.

Bitcoin Sell-Off Amid Market Unease

The analysts pointed out that the rate cut itself was largely anticipated by investors weeks prior, with a 95% probability already priced into the market. 

Ahead of the announcement, they identified that many positioned themselves in expectation of some form of liquidity support from the Fed, leading to a rally in Bitcoin prices. 

However, when the actual cut and the accompanying plan for $40 billion in monthly T-bill purchases were confirmed, many of these “whales”—large investors in the market—began to take profits. 

Adding to the market’s unease was Fed Chair Jerome Powell’s post-announcement press conference, where he highlighted persistent weaknesses in the labor market and ongoing inflation concerns. Furthermore, the Fed’s dot plot projections indicated the likelihood of only one additional rate cut in 2026.

The situation was compounded by disappointing earnings results from Oracle, which reported its second quarter’s financials after the market’s close. The tech giant missed its adjusted revenue estimates, and higher capital expenditure projections led the stock to plunge by more than 11% in after-hours trading. 

This drop also negatively impacted US stock futures, as concerns grew that the artificial intelligence (AI) boom may be peaking. The widespread fear from Oracle’s results quickly spread from equities into the cryptocurrency space.

Ultimately, all three factors converged to create a significant sell-off: the rate cut was already factored into the market, liquidity trades had been preemptively enacted, and Powell’s remarks did not provide the strong easing signal that some traders had hoped for. 

Positive Liquidity Conditions Expected In 2026

Interestingly, Bull Theory analysts assert that the crypto market’s recent decline is not indicative of a fundamental shift towards bearish conditions but rather an overreaction based on high expectations leading up to the Fed’s announcement. 

The Fed has now enacted rate cuts three times in as many meetings, and their plans to purchase $40 billion in T-bills over the next month are designed to inject liquidity into the markets. 

Moreover, Powell indicated that further rate hikes are not on the horizon as a base case, and forecasts for solid economic growth next year remain intact.

Although job gains may have been overstated, suggesting a softer labor market, this could afford the Fed greater flexibility to ease monetary conditions in the future if necessary. 

The current market movements illustrate that the dumping of assets was largely driven by overly optimistic expectations rather than any deterioration in underlying fundamentals.

Looking ahead, the analysts believe that next year is expected to be more favorable for Bitcoin and broader crypto prices in terms of liquidity, contrasting sharply with the conditions projected for 2025. 

Bitcoin recovered above $91,100 as of this writing, amid rising volatility. This puts the top cryptocurrency 26% behind its all-time high of $126,000, set in October of this year. 

Featured image from DALL-E, chart from TradingView.com