Market Overview - The crypto market has shown minimal movement, with Bitcoin trading between $86,000 and $88,000, while the CoinDesk 20 Index (C20) remained stable, and the CoinDesk 80 Index recorded a modest 1% gain, indicating some strength in the altcoin market [1] - Year-to-date, Bitcoin is down 7%, contrasting with a 2.5% increase in the U.S. 10-year Treasury note, suggesting that investing in bonds would have been a more prudent choice this year [2] Macro Perspective - The outperformance of the 10-year Treasury bond raises concerns for other risk assets, including stocks, hinting at potential institutional outflows from spot Bitcoin ETFs as a precursor to broader market challenges [3] - The Federal Reserve's anticipated dovish stance, with a possible 25 basis point rate cut, could alter market dynamics, particularly affecting the Dollar Index (DXY), which is currently maintaining levels above its 200-day simple moving average [4] Trading Environment - Recent trading activity indicates a spike in hedging around the $80,000 Bitcoin put, alongside significant block trades suggesting a potential price range shift above $100,000 by year-end, although a notable $220,000 call purchase was paired with a $40,000 call, indicating a focus on volatility rather than a straightforward bullish outlook [5] - The current trading environment is characterized as challenging, with options flows lacking clear directional signals [5] Regulatory Developments - A new U.S. bank rule reducing capital requirements for low-risk assets like Treasuries may enhance liquidity at banks, potentially increasing lending and enabling dealers to better manage government bond markets during periods of stress, signaling a trend towards deregulation [6]

By Jamie Crawley (All times ET unless indicated otherwise) Bitcoin (BTC) showed signs of a Thanksgiving week rally on Monday, almost reclaiming $90,000 and offering a ray of hope that the weekend's recovery from below $85,000 may turn into something a bit more sustained. The optimism was short-lived, with BTC dropping back to $87,000 during the European morning Tuesday. The CoinDesk 20 Index (CD20) also looked like it was getting into the holiday spirit rising almost to 3,000 before retreating around 3% ...

The crypto market is weary after relentless waves of sell pressure on Tuesday. Several assets have now settled as they begin to establish levels of support, although if the U.S. dollar continues to show strength it could signal a period of prolonged downside. Bitcoin (BTC) rose about 1% since midnight UTC after two days of declines that saw it drop to the lowest price since June at one point. Ether (ETH), which slid as much as than 20% over the 48 hours — the steepest drop in three months — added 2%. Whi ...