Although December started off rough for cryptocurrencies, significant developments are suggesting increased volatility. Despite massive Bitcoin (BTC) 
$78,258 sales, the exchange supply continues its downward trend. As we approach the end of 2025, the upcoming year promises to be full of surprises for cryptocurrencies. Here are the latest developments and crucial insights that shouldn’t be overlooked.
Bitcoin Supply Scarcity and Market Cycle
BTC, while nearing its daily peak, remains below $90,000. With two hours until U.S. market opening at the time of writing, there’s curiosity about how ETF volumes might shift under the Vanguard effect. Despite witnessing major sales and declines, BTC quantities on exchanges continue to shrink. Currently, exchange supply has dropped to 1.8 million units.
The supply across all cryptocurrency exchanges is less than three times Strategy’s 650,000 BTC reserves, indicating that Strategy holds more than 33% of all exchange reserves. This figure, once above 3 million, has plummeted rapidly.
Quinten, a pseudonymous analyst, pointed out that this cycle is different from the previous ones, stating:
“Everyone expects a classic altseason like in 2017 or 2021. However, the entire market structure has changed. In 2017, a few hundred coins competed for capital. By 2021, there were thousands. Now, in 2025, there are over 11 million tokens, memecoins, and worthless experiments. The days of ‘everything rises in a bull market’ are gone. This is the toughest cycle in crypto history. You need a portfolio of real projects with genuine demand, or you will disappear.”
Eight Significant Developments
Vanguard has reversed its long-standing anti-crypto stance, now offering crypto ETFs to its clients. China’s central bank has doubled down on its crypto ban with stricter measures on stablecoins, a move that isn’t particularly supportive. Grayscale is launching its first spot Chainlink 
$9 ETF today.
The fourth major development comes from Japan, imposing a consistent 20% crypto tax like on stocks and trusts. The FDIC will implement the GENIUS Act framework to supervise stablecoin issuers this month. Ripple 
$1 has secured MAS approval to expand its licensed payment services in Singapore. Kalshi has launched event contracts on the Solana 
$84 network. Sony Bank has announced plans to launch USD stablecoins in the U.S. by the 2026 fiscal year. In addition to these eight major developments, the Fed has announced a policy change.
“WOW!! The Fed injected $13.5 billion into the market as an overnight repo operation. This is one of the BIGGEST liquidity injections since COVID and exceeds any overnight repo amount seen during the dotcom period.” – Lark Davis
There are many reasons to remain optimistic about the future of cryptocurrencies.
