Ethereum's Fusaka upgrade activates Wednesday, introducing fee structure changes analysts expect to drive supply contraction. The upgrade addresses a structural issue where Layer 2 solutions generated substantial user fees but contributed minimal revenue to the base layer, potentially shifting Ethereum toward deflationary supply dynamics. Analysts project the changes could burn an additional 200,000 to 400,000 ETH annually under conservative estimates.

Strategy CEO Phong Le disclosed that the company could sell Bitcoin if its stock price falls below the net asset value of its cryptocurrency holdings and it cannot secure capital for preferred dividends. Bitcoin dropped below $85,000 amid the speculation. The firm revised its year-end BTC price forecast from $150,000 to a range of $85,000–$110,000.

South Korea's National Police Agency has opened an investigation into unauthorized withdrawals of approximately $36.9 million in Solana network assets from Upbit, the country's largest cryptocurrency exchange. Authorities are examining possible links to North Korea's Lazarus Group, a state-affiliated entity previously connected to multiple cryptocurrency thefts. Upbit has suspended all deposit and withdrawal services and moved remaining assets to cold storage.

Bitcoin has stabilized above $90,000, prompting BTIG analysts to forecast a potential advance toward $100,000. Jonathan Krinsky of BTIG said the cryptocurrency is positioned for a continued reflex rally, supported by historical patterns showing momentum typically builds after late November. The firm also highlighted Strategy (formerly MicroStrategy) as a mean reversion trading candidate, maintaining a buy rating with a $630 price target.

S&P Global downgraded Tether's USDT stablecoin to a rating of 5 (weak), the lowest on its assessment scale, citing persistent disclosure gaps regarding custodians and counterparties. The rating agency highlighted concerns about high-risk asset allocations including Bitcoin, gold, corporate bonds, and secured loans. Tether CEO Paolo Ardoino dismissed the assessment, stating that traditional credit rating methodologies do not apply to digital asset issuers.

Bitcoin has maintained support above $80,000 since dropping to that level on November 21. On-chain data show institutional wallets reducing positions while mid-sized holders accumulate. Technical indicators point to weakening selling pressure, though distribution from large whale cohorts continues.

Bitcoin fell to $80,000 on Friday, an eight-month low, capping what may be the worst week since November 2022. Crypto Banter founder Ran Neuner links the decline to MSCI's October 10 announcement that it is reviewing whether Digital Asset Treasury firms should be reclassified as funds rather than companies. A final ruling is expected January 15, 2026, and could force index exclusions and institutional sell-offs.

Bitcoin has retreated nearly 26% from record highs, triggering a sell signal from the SuperTrend indicator—the first since 2022. Market analyst Ali Martinez notes that the previous signal preceded a 67% decline from $69,000 to approximately $17,000. If similar patterns emerge, BTC could potentially fall to around $31,185 in coming months. Additional technical indicators, including a death cross, have also appeared on Bitcoin charts.

Circle (CRCL), issuer of the USDC stablecoin, has seen its stock decline 68% from its June 23 peak of $298 to around $82. The company faces its lockup period expiration this Friday, two days after third-quarter earnings release. Analysts warn that historical data shows 58% of outperforming IPOs underperform post-lockup.