The week of December 1–7, 2025, proved eventful for the crypto market, dominated by major network upgrades, macroeconomic expectations, and price corrections in leading assets. Bitcoin endured a deep correction, dipping below $95,000, though K33 Research analysts identified signs of a bottom with rebound potential by month-end. Total market capitalization neared $3 trillion, amid bearish sentiment driven by declining liquidity and rate hike concerns.
Key Network Upgrades and Forks
The first week of December marked an "infrastructure super-cycle": five blockchains executed critical upgrades in quick succession. Ethereum activated the Fusaka hard fork on December 3, raising gas limits and launching PeerDAS to enhance scalability. VeChain launched Hayabusa Mainnet on December 2, while Flare, MultiversX, and Siacoin completed hard forks, straining nodes and underscoring the ecosystem's growing maturity.
Additionally, Lido and Renzo initiated votes on treasuries and token burns to manage emissions. Mina Protocol began voting on the Mesa upgrade on December 8, maintaining a 22 KB chain for mobile decentralization.
Token Unlocks and Market Events
Major unlocks injected significant volumes: EIGEN released 36.82 million tokens ($21.8 million) on December 1, and ENA unlocked 40.63 million ($11.6 million) on December 2. Binance secured its first global ADGM license, while French bank SocGen announced the EURCV stablecoin. Trust Wallet integrated Kalshi prediction markets, with the CNN partnership bolstering event probability data.
India Blockchain Week occurred December 2–3 in Bangalore, highlighting Web3 growth in India. MicroStrategy built a $1.44 billion dollar reserve against prolonged BTC correction in the $55,000–$70,000 range.
Macroeconomics and Forecasts
The market responded to Fed expectations: Polymarket indicated a 93% chance of a 25 basis point rate cut in December. Coinbase Institutional predicted recovery via improved liquidity and Fed easing, despite Japanese rate hike risks and yen carry trade unwinding. BTC hovered below $95,000 due to low liquidity, while altcoins like ETH and SOL showed relative resilience.
Experts spotlighted promising assets: BTC, ETH, SOL, BNB, and OFFICIAL TRUMP amid institutional inflows. By December 7, BTC gained $5,591 over the week to $91,345.
Regulatory and Institutional Shifts
The U.S. Congress advanced crypto legislation slowly. Concerns over U.S. inflation on December 18 and the Fed decision on December 10 dominated the calendar. 21Shares co-founder questioned a January BTC rally. Memecoins surged 1600% across the top 900, while DeSci lagged.
