Bitcoin Volatility to Start 2026, China Drove Crypto Crime in 2025

Group 1: Bitcoin and Gold Comparison - Bitcoin has seen a decline of approximately 4.8% over the past eight days, influenced by geopolitical threats and market sentiment, while gold continues to rise, surpassing $5,000 [2][3] - Investors have withdrawn over $1.3 billion from Bitcoin ETFs and related funds since Bitcoin's last record high, indicating a shift in investor preference towards gold [3] - The current market behavior suggests that Bitcoin holders are more influenced by risk appetite and liquidity rather than inflation concerns, which have benefited gold [4] Group 2: Traditional Finance and Digital Assets - Morgan Stanley has appointed Amy Oldenberg as the head of digital asset strategy, signaling a commitment to expanding their crypto-related initiatives [5][9] - Other banks, like JP Morgan, are further along in their crypto strategies, indicating a competitive landscape in traditional finance's approach to digital assets [7][8] - Morgan Stanley's efforts include filing for crypto-related ETFs and collaborating with cryptocurrency infrastructure providers to enhance client offerings [8][10] Group 3: Illicit Crypto Activities - A report indicates that illicit crypto money laundering reached over $82 billion in 2025, with Chinese language networks responsible for a significant portion [25][26] - The rise in crypto adoption has led to an increase in identifiable money laundering activities, contrasting with traditional cash-based methods that are harder to track [28][29] - Chain Analysis provides solutions to government and law enforcement agencies to combat these illicit activities, emphasizing the need for real-time data and effective disruption strategies [34][41] Group 4: Tether's New Stable Coin - Tether has launched a new US-focused stable coin, USAT, which is dollar-pegged and compliant with US regulations, marking its re-entry into the US market [44][46] - The new stable coin is backed by US treasuries, enhancing liquidity and ease of redemption for users [48] - Stable coins are primarily used for crypto trading, allowing firms to manage positions without converting to traditional cash, which can complicate transactions [50]