At 00:25, Bitcoin fell $2,000 in minutes to $86,888 on Coinbase after over $360 million in leveraged longs were liquidated, a 9% slide over 48 hours. Gold futures reached $4,820, edging toward $5,000. U.S. stocks posted their worst day since October 10, while futures later showed modest gains.

Fundstrat head of research Tom Lee, who also chairs Ethereum treasury firm BitMine, forecasts a "painful" pullback in crypto and equities in 2026 before a strong recovery toward year-end. He still expects Bitcoin to reach a fresh all-time high this year, viewing it as confirmation that the October 10 deleveraging shock is behind the market. Lee and other analysts also see energy, basic materials and metals as potential outperformers in 2026, though some warn of a later sharp correction that could hit crypto even harder.

Bitcoin is holding a critical support area near $90,000 as risk appetite weakens, according to a market review. Shiba Inu dropped below its 50 EMA, turning a former base into resistance. XRP is attempting to stabilize within the $1.90–$2.00 zone, where a decisive break could open the door to deeper retracement.

NYSE said it is developing an on-chain platform to trade and settle tokenized U.S. equities and ETFs, and will seek regulatory approvals for a proposed venue built on that infrastructure. According to ICE, the system targets 24/7 operations, instant settlement, dollar-sized orders, and stablecoin-based funding, with post-trade systems capable of supporting multiple chains for settlement and custody.

Shiba Inu fell 7% and briefly broke below short-term support before buyers quickly stepped in, signaling notable dip-buying interest. XRP has logged a death cross only days after a golden cross, with its price slipping nearly 4% and trading in a tight range around $1.97 to $2.06. At the same time, the New York Stock Exchange revealed plans for a separate 24/7 blockchain-based market for tokenized securities with instant settlement using stablecoins.

CFTC Chair Michael Selig has launched the Future-Proof initiative to overhaul decades-old U.S. derivatives, crypto, and prediction market regulations as he begins his term at the agency. Taking office on December 22 after Senate confirmation on December 18, he aims to replace enforcement-led oversight with tailored rules for blockchain, AI-driven trading, and digital asset markets. The program will review existing frameworks, modernize requirements, and build on reforms advanced under former acting chair Caroline Pham.

The combined stablecoin market cap has climbed to a record $307.7 billion, while tokenized funds and other RWAs are also at all-time highs. At the same time, Bitcoin's market cap has dropped faster than stablecoin supply, driving the Stablecoin Supply Ratio sharply lower and signaling unusually large sidelined buying power. This pattern has historically appeared near local market bottoms, with on-chain liquidity waiting for clearer risk conditions before rotating back into volatile assets.

The Digital Asset Market CLARITY Act of 2025 is a U.S. market structure proposal that seeks to define when a digital asset is treated as a security or a commodity and how trading venues and intermediaries should register under federal oversight. The House passed H.R. 3633 in July 2025, and in January 2026 the Senate Banking Committee postponed a key markup amid criticism from industry leaders over CFTC authority and stablecoin rewards. Supporters say the framework could reduce regulation-by-enforcement, while critics warn it may weaken state powers and create new pressure points for decentralization and DeFi.