The U.S. stock markets are in shambles, while Bitcoin is flying past $108,000, rewriting the rules of the financial game. The S&P 500 has now set a record for failure, dropping for 12 straight days—the longest losing streak in its entire history.
The Dow Jones isn’t doing much better, limping into a nine-day losing streak after shedding another 0.61% on Tuesday. The Nasdaq Composite followed suit, slipping 0.32%.
This chaos isn’t confined to Wall Street. Over in Europe, the Stoxx 600 index dropped 0.42%, dragged down by a 1.4% nosedive in banking stocks. Somehow, tech stocks managed to claw out a 0.61% gain, defying gravity in a market that seems allergic to good news.
Nvidia fell another 1.2% on Tuesday, solidifying its position in correction territory, with its stock down more than 10% from recent highs. Broadcom was right there with it, dropping 3.9% as its recent rally lost steam.
Meanwhile, the Dow is drowning, and UnitedHealth is holding the anchor. Over the last eight sessions, this one stock has accounted for more than half of the Dow’s total losses. That’s because the company’s CEO, Brian Thompson, was allegedly shot to death, sending the company into a tailspin.
Outside of the Dow, the broader market is still showing some signs of life. The S&P and Nasdaq are hovering near record closes, even though they also ended Tuesday in the red.
While Wall Street scrambles, Bitcoin is stealing the show. The largest crypto hit $108,315 on Tuesday before settling back to $106,400 so the bulls can cool down a bit.
President Donald Trump has emerged as crypto’s newest hype man, backing Bitcoin-friendly policies and even floating the idea of a strategic national Bitcoin reserve.
If that wasn’t enough, MicroStrategy—famous for pouring billions into Bitcoin—is about to join the Nasdaq 100 Index. Investors are piling in, betting that Bitcoin’s star is only beginning to rise.
Since Trump’s election victory on November 5, Bitcoin has surged more than 55%. Its ETFs are seeing huge inflows as both institutional and retail investors jump in, shrugging off the usual concerns about volatility and the lack of traditional valuation metrics.
On the Deribit options exchange, traders are stacking bullish bets at the $120,000 strike price. Open interest there—the number of outstanding contracts—shows strong confidence that Bitcoin’s momentum isn’t slowing down anytime soon.
Back in the traditional market, some are hoping for a Santa Rally—the usual uptick in stock prices during the last week of December. But with the Fed meeting’s outcome still uncertain, it’s unclear whether Santa’s bringing gifts or coal this year. For now, Bitcoin seems to be running the show.
All-eyes are on the Federal Reserve as its two-day meeting comes to an end. Traders expect the Fed to cut rates by 25 basis points, but it’s not a done deal. Inflation refuses to back off, and the labor market is still holding strong.
Elsewhere, ByBit, the second largest crypto exchange by trading volume, announced that it was leaving the French market beginning January 8th, 2025, citing regulatory hurdles.
The exchange will temporarily stop withdrawals between January 8th and 16th, 2025, during the transfer of unclaimed digital assets for ByBit users with matching Coinhouse accounts.
The ByBit crypto exchange will no longer provide withdrawal and custody services to nationals or residents of the French Territories – ‘French users’ effective January 8th next year, the exchange Tuesday.
The affected users have been requested to transfer their digital assets to the Coinhouse exchange before the deadline to avoid losing their funds or paying extra fees.
Accounts with 10 USDC or less will be charged a fee of 10 USDC and be closed permanently. Those with more than 10 USDC will incur the same fee amount, and then the difference will be forwarded to their corresponding Coinhouse accounts.
Users without verified Coinhouse accounts will be required to open and verify the Coinhouse accounts through the necessary KYC process. All subsequent withdrawals will then be handled through their Coinhouse accounts.
All unclaimed digital assets still held on ByBit after the deadline will be transferred automatically between January 8th and January 16th, 2025, for ByBit users with matching Coinhouse accounts. Withdrawals will be unavailable during this transfer period.
Those with verified accounts will not face extra costs, but unverified users will have to pay a monthly fee of 0.16% of their holdings or 1 USDC – whichever is higher.
ByBit has been under increasing scrutiny from the French Autorité des Marchés Financiers since 2022, and French users have been restricted to ‘Close-Only’ mode since August of this year. The restrictions applied to all products offered by ByBit.
According to the FSB (Financial Stability Board), trading and investment were the main use cases of crypto assets in France.
Stablecoins were mostly used as a medium of exchange for crypto-to-crypto transactions. However, the use of crypto assets for payments remained limited, just like the direct links between traditional finance and the crypto market.
ByBit’s exit from France emphasized the tightening regulatory environment in the country and Europe in general.
Exchanges face increasing scrutiny and pressure to align with the evolving compliance frameworks in the French market. ByBit’s decision signaled the importance of users staying informed about regulatory changes and acting swiftly to secure their digital assets.
The ByBit exchange is expected to focus on European markets where compliance pathways are clearer as regulators refine their crypto oversight.