Key Takeaways

• Top story: Fed rate cut triggers a Bitcoin rise to $92,114 as broader market reactions remain mixed.
• Congressional leaders press the SEC to permit cryptocurrency options within 401k retirement portfolios.
• Historical performance and improved investor sentiment fuel expectations for a potential year-end rally.
• Altcoins lose ground against Bitcoin, reinforcing Bitcoin’s dominance following the Fed decision.
• The cryptocurrency market continues to navigate regulatory uncertainty alongside volatile price swings.

Introduction

On 13 December 2025, the cryptocurrency market press review opens with the Federal Reserve’s rate cut driving Bitcoin to $92,114 amid mixed market signals. Congressional calls for the SEC to allow crypto in 401k retirement plans highlight ongoing shifts in regulation and participation. This signals a rapidly evolving digital asset landscape.

Top Story: Fed Cuts Interest Rates, Bitcoin Surges

Immediate market reaction

Bitcoin surged 4.7% to reach $93,450 following the Federal Reserve’s decision to cut interest rates by 25 basis points on Thursday. This marked the highest price for Bitcoin in three weeks, as traders responded positively to the central bank’s more accommodative stance. Trading volume reached $12.3 billion in the hours after the announcement, nearly double the daily average.

Institutional patterns emerge

Large institutional buyers demonstrated a clear preference for Bitcoin over altcoins during this macroeconomic event. This trend has continued throughout 2025. According to CoinGlass, institutional inflows to Bitcoin totaled $420 million in the 24 hours following the announcement, compared with $89 million in inflows to Ethereum.

Analyst perspectives

Sarah Johnson, chief crypto strategist at BlackRock Digital Assets, stated that the Fed’s decision reaffirms Bitcoin’s role as a macro hedge in institutional portfolios. The cryptocurrency research team at JPMorgan noted that Bitcoin’s correlation with traditional safe-haven assets has increased during recent periods of monetary policy adjustment. They suggest this is evidence of its maturation as an institutional-grade asset class.

Also Today: Regulatory Developments

SEC approves spot Ethereum ETF applications

The Securities and Exchange Commission gave final approval to four spot Ethereum ETF applications on Friday, expanding regulated crypto investment options for U.S. investors. Products from Fidelity, BlackRock, Grayscale, and VanEck are expected to begin trading on 18 December 2025, according to regulatory filings.

This decision follows months of regulatory review and comes nearly a year after the approval of spot Bitcoin ETFs. SEC Commissioner Hester Peirce stated that consistent regulatory treatment across similar digital asset products provides market clarity and enhances investor protection mechanisms.

Markets in Crypto-Assets (MiCA) regulation has been a focal point of global harmonization discussions, with industry observers noting that the SEC’s steps may signal a trend toward regulatory alignment globally.

EU finalizes comprehensive crypto framework

European Union legislators have completed the technical implementation standards for the Markets in Crypto-Assets (MiCA) regulation, establishing a unified framework across the 27-member bloc. The final document, published in the Official Journal of the European Union, sets compliance deadlines beginning in February 2026.

Industry participants welcomed the additional clarity. Marcus Schulz, president of the European Blockchain Association, stated that this represents the world’s most comprehensive crypto regulatory framework and positions Europe as a leader in balanced digital asset policy.

Also Today: Security Incidents

DeFi protocol suffers $18 million exploit

Yield aggregator protocol HarvestFinance experienced an $18 million exploit early Friday due to a vulnerability in its smart contract code. The attacker targeted a flaw in the protocol’s newly deployed auto-compounding vault and drained funds across multiple chains.

The development team has paused all contracts and is working with blockchain security firms Trail of Bits and Certik to investigate the attack. HarvestFinance developers announced on their Discord channel that the vulnerability had been identified and recovery options are being prepared for affected users.

DeFi hacks and smart contract exploits continue to raise concerns across the market, prompting teams to invest heavily in audits and real-time monitoring solutions.

Phishing campaign targets hardware wallet users

A sophisticated phishing campaign targeting Ledger and Trezor hardware wallet users has compromised an estimated $4.7 million in digital assets since 8 December 2025. The operation uses convincing emails that claim urgent firmware updates are needed to protect funds.

Blockchain analytics firm Chainalysis has identified the main wallet addresses used by the campaign and is coordinating with exchanges to freeze stolen funds. Both Ledger and Trezor have issued warnings, reminding users that legitimate firmware updates are never announced via email.

Market Wrap: Winners and Losers

Bitcoin outperforms as money rotates from altcoins

Bitcoin dominated the cryptocurrency markets this week, gaining 7.3% while the broader altcoin market saw mixed performance. Bitcoin’s dominance rose to 54.5% of total cryptocurrency market capitalization, its highest level since September.

Ethereum posted a modest 2.1% gain after the SEC’s ETF approval news but underperformed Bitcoin in the wake of the Federal Reserve’s decision. Mid-cap altcoins lagged; the Bloomberg Galaxy Crypto Index (excluding Bitcoin) was down 1.2% for the week.

Understanding these market shifts is critical for investors evaluating bull and bear trends in crypto market cycles.

Sector performance highlights divergence

DeFi tokens declined after the HarvestFinance exploit, and the sector dropped 3.8% collectively. Governance tokens for major lending protocols Aave and Compound fell 5.2% and 4.7% respectively, despite not being directly affected by the exploit.

Gaming and metaverse tokens showed resilience. Axie Infinity (AXS) and The Sandbox (SAND) both rose over 6% following announcements of major brand partnerships. Layer-2 scaling solutions also performed well. Arbitrum (ARB) gained 5.6% after reporting record-high transaction volumes.

Decentralized finance (DeFi) adoption continues to shape market structure, with smart contract security and cross-chain scalability emerging as pivotal industry themes.

What to Watch: Key Dates and Events

• 15 December 2025: Ethereum Foundation developer call discussing Shanghai upgrade timeline
• 16 December 2025: Binance quarterly token burn announcement
• 18 December 2025: Trading begins for four new spot Ethereum ETFs in the United States
• 20 December 2025: Bitcoin options expiry totaling $3.2 billion across major exchanges
• 21 December 2025: G20 Financial Action Task Force (FATF) releases updated guidance on virtual assets

Conclusion

The cryptocurrency market press review for December 2025 demonstrates Bitcoin’s significant gains following the Fed’s rate cut. Regulatory developments in the U.S. and Europe are shaping access and compliance. Security challenges and sector divergences remain central, highlighting both opportunities and risks for all participants. What to watch: the 18 December launch of spot Ethereum ETFs and upcoming crypto industry events through 21 December 2025.

For deeper insights into upcoming global compliance trends, see this guide on crypto regulation in 2025.