The Federal Reserve's rate trajectory for 2025 shows a 25-basis-point cut in December, bringing the federal funds rate to approximately 3.5%-3.75%, with forward curves projecting at least three additional cuts through 2026 to around 3%, Delphi Digital reports. Quantitative tightening concluded on December 1, while the Treasury General Account is planned for gradual reduction and the Overnight Reverse Repurchase facility has been fully depleted. These factors have produced the first net-positive liquidity environment since early 2022, with SOFR and the federal funds rate retreating to the high-3% range and real rates declining from 2023-2024 peaks in a controlled manner. The research firm noted this shift from policy headwinds to moderate tailwinds in 2026 favors long-duration assets, large-cap equities, gold, and digital assets supported by structural demand.

The address labeled 'pension-usdt.eth' increased its 3x leveraged BTC short position by approximately $60 million over the past hour, bringing total holdings to $93.2 million at an average entry of $92,700 with a floating loss of $460,000 (1.4%), Coinbob address monitoring shows. This makes it the largest BTC short position holder on Hyperliquid as of December 4. The address partially closed around $60 million in BTC shorts at breakeven at 0:00 today before re-establishing the position this morning. The whale frequently engages in swing trading with low-leverage large positions, averaging 8-hour hold times this week, and has generated $6.6 million in monthly profits.

Strategy has established a 24-month dollar buffer reserve, acknowledging non-zero probability of deep or prolonged Bitcoin corrections, CryptoQuant reported Wednesday. The dual-reserve model holding both dollars and Bitcoin reduces forced liquidation risks during downturns, marking a shift from the company's 2020-November 2025 approach of continuous Bitcoin accumulation through equity and convertible debt issuance. CryptoQuant notes this transition means reduced marginal Bitcoin buying will weaken demand channels seen in previous bull cycles, while dollar reserves and disclosed hedging capabilities significantly lower forced-sale probability during financial stress.

Bitcoin dropped below $93,000 on Dec. 4, trading at $92,986 with a 24-hour gain of 1.85%, HTX market data show. The decline marks a retreat from recent levels as intraday momentum moderated.

Bitcoin briefly exceeded $94,000 on Dec. 4, HTX market data show. The cryptocurrency was trading at $93,781, up 2.02% in 24 hours.

BlackRock CEO Larry Fink said his earlier opposition to Bitcoin and cryptocurrency was a mistake, speaking at The New York Times DealBook Summit on Dec. 4. Asked about his 2017 remarks describing cryptocurrency as a tool for money laundering and thieves, Fink said his views evolved through ongoing self-examination and annual meetings with thousands of clients and government leaders. BlackRock now manages the largest Bitcoin spot ETF by assets.

Bitcoin fell below $92,000 on Dec. 3, with its 24-hour gain narrowing to 4.5%, HTX market data show. The move marked a pullback from earlier highs as the cryptocurrency consolidated gains.

A cryptocurrency whale withdrew 171 BTC valued at $15.79 million from Binance on Dec. 3, marking the address's first on-chain activity in one year, OnchainLens data show. The transaction was detected through blockchain monitoring.