Turkmenistan legalizes crypto with new laws effective January 1

Turkmenistan has announced plans to legally accommodate cryptocurrency operations starting January 1, 2026, marking a significant shift in its regulatory approach to digital assets. This decision aligns the country with a growing trend among nations to regulate rather than ban cryptocurrencies.

Arthur Hayes has raised concerns regarding Tether's investment strategy, particularly its significant exposure to Bitcoin and gold, which he warns could lead to substantial financial instability and undermine market confidence in the USDT stablecoin. This warning comes amid a backdrop of declining Bitcoin prices and recent downgrades from S&P Global Ratings, which cited similar vulnerabilities in Tether's financial practices.

Ethereum ETFs experienced significant outflows totaling $1.4 billion in November, reflecting a retreat by investors amid increasing caution and volatility in the cryptocurrency markets. This trend indicates a growing wariness among investors regarding the stability of Ethereum as a viable investment option.

Arthur Hayes, co-founder of BitMEX, has stated that most Layer 1 (L1) cryptocurrencies outside of Ethereum and Solana are likely to decline significantly, potentially heading towards zero. This assertion highlights concerns about the sustainability and viability of numerous blockchain projects in the current market landscape.

BlackRock's Bitcoin ETF has recorded $114 million in net outflows amid ongoing market volatility, reflecting a cautious stance from investors as they navigate the uncertain cryptocurrency landscape. This trend follows a series of significant withdrawals from the fund, indicating a potential shift in institutional investment strategies.

Turkmenistan has enacted a landmark law that legalizes and regulates virtual assets, set to take effect on January 1, 2026. This legislation marks a significant shift in the country's approach to cryptocurrency, establishing a legal framework for digital assets and trading within its borders.

Bitcoin's dominance has decreased to the 23.6 Fibonacci level and 59% overall, indicating a potential shift towards altcoins as market leadership transitions. This drop follows a period of volatility in the cryptocurrency market, where Bitcoin's price has fluctuated significantly.

The Coinbase Bitcoin Premium has turned positive, indicating a resurgence in demand from US institutions as they are willing to pay above global prices for Bitcoin. This shift comes after a period of negative sentiment where institutional selling was prevalent, reflecting a potential change in market dynamics.