CFTC launches digital assets pilot, allowing Bitcoin and Ethereum as collateral

The Commodity Futures Trading Commission (CFTC) has launched a pilot program that allows Bitcoin (BTC), Ethereum (ETH), and USDC to be used as collateral in derivatives markets. This initiative is part of a broader effort to integrate digital assets into traditional financial systems, enhancing the regulatory framework surrounding cryptocurrencies.

Twenty One Capital opened lower on its debut on the New York Stock Exchange (NYSE) as investors assessed its Bitcoin treasury model, which includes a significant holding of 43,500 BTC valued at approximately $4.5 billion. This debut follows a merger with Cantor Equity Partners and comes amidst concerns about potential sell-offs in the cryptocurrency market.

Dogecoin (DOGE) has stabilized above a key support level around $0.14, marking a period of consolidation as market participants assess technical indicators and adoption trends. Despite a muted response to its 12th anniversary, network activity has surged, with daily active addresses exceeding 67,000, reflecting increased engagement within the community.

Senators engaged in bipartisan discussions regarding the anticipated crypto market structure bill, with Senator Cynthia Lummis expressing optimism for a new draft to be released soon. The discussions are aimed at finalizing the legislation before Congress adjourns for the holiday break. Lummis highlighted the urgency of progressing with the bill during a panel hosted by the Blockchain Association.

Ethereum has experienced significant inflows to Binance, marking the largest daily exchange netflow since 2023, amidst a period of price consolidation between $3,000 and $3,200. This development has raised concerns among analysts about a potential bearish phase due to weakening demand and market uncertainty.

The number of Bitcoin addresses holding over 0.1 BTC has not increased in the past two years, breaking a long-standing trend of growth that persisted through various market cycles. This stagnation suggests a shift in the engagement of smaller and mid-sized investors with Bitcoin, even as institutional interest in the cryptocurrency market continues to rise.

A prominent crypto investor has made headlines by selling all of his Bitcoin holdings, which he initially purchased at $3,000, to invest entirely in XRP. This decision comes amid a turbulent market where Bitcoin's price has dropped significantly, while XRP is also facing a downturn, with recent reports indicating a negative shift in social sentiment towards the token.

Standard Chartered and Bernstein have revised their Bitcoin price targets, with Standard Chartered lowering its forecast to $100,000 by year-end, while Bernstein maintains a long-term bullish outlook, predicting Bitcoin could reach $1 million by 2033. This adjustment comes amid recent declines in Bitcoin's price and ETF outflows, reflecting shifting institutional demand.