Double bottom or last gasp?
After months of decline, the market seems to be at a turning point. Altcoins are showing a pattern that offers hope for a possible recovery, but the reversal has not yet been confirmed. Meanwhile, a different battle is playing out in the US: the conflict between Trump and the central bank. It is this struggle that touches on one of Bitcoin's core values. How exactly? More on that in this edition of Market News.
Market update
On October 10, the floor fell out from under the crypto market. In a short period, prices dropped by tens of percent. Leveraged positions were closed and collateral was liquidated, pushing prices down even further. The damage ran into the tens of billions of dollars.
This marked the start of a sharp correction. Week after week, prices fell until a bottom was reached on November 21, about 40% lower than at the beginning of October. That was seven weeks ago. Investors are now processing the new reality in their scenarios and shaping their strategies for the new year. Some are still exiting the market. Others, however, are increasing their positions. Throughout this period, supply and demand have remained relatively well balanced.
A possible double bottom is forming on the altcoin market chart. A break above the highest point between the two bottoms would confirm this pattern. This corresponds approximately to a Bitcoin price of ā¬81,000. Sustained trading above that level could signal the start of a new rally.
Such a rally would be highly informative. If we reach new all-time highs, the bull market remains intact. However, if prices do not regain the level seen in early October, this would mark a lower high. That would be a strong indication that the bull market is over and that we are heading towards the bottom of a bear market, the final stage of this market cycle.
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Tensions escalate: Trump versus the central bank
Rarely does a Federal Chairman address the markets as if he has to account for his actions. Even rarer is doing so to defend against the threat of criminal prosecution. Yet that is exactly what Jerome Powell did on Sunday evening, just before the opening of the financial markets.
No figures, no charts, no policy changes. Powell spoke instead about subpoenas, investigations, and the possibility of prosecution. Officially, the issue was about a botched renovation of the Fed headquarters. In reality, it was about something else entirely: who gets to decide where the limits of monetary policy lie.
Powell was unequivocal. The attack, he stated, is not about concrete or budgets, but about the interest rates. About the fact that the Federal Reserve bases its decisions on economic data, not on political demands. The fact that he felt compelled to state this was telling. Central bankers are not meant to fight these battles publicly. That Powell chose to do so makes it clear how much he believes is at stake.
The reactions were predictable: ranging from surprise to discomfort. This does not fit the image of the United States as a country where institutions stand above individuals. But that image has long been under pressure. In a world where power is increasingly exercised in a personal way, this clash feels less like an isolated incident, and more like a symptom.
The markets understood that. There was no panic, no flight from the dollar. There was a modest reshuffle, however. A little less confidence, a little more uncertainty. It was as if investors were saying: this risk was already priced in, it has just become more visible.
What makes this incident so unsettling is not that the system is failing, but that its cracks are now on display. The strength of America has always been in the distance between power and policy. In rules that were stronger than individuals. But that distance proves less self-evident than once assumed when it has to be defended by a single man in front of a camera.
The conflict sheds new light on Bitcoin. Not as a winner, and certainly not as a safe haven. Bitcoin has long ceased to behave like an outsider, but as part of the same financial landscape. That is precisely why the contrast is interesting.
Where the traditional system relies on people having to defend their positions, Bitcoin was designed without a prominent figurehead, without statements, without the need for defence. It keeps running, regardless of who is under pressure or who seizes power. That doesn't make it a cure-all, but it does make it an important counterpoint.
Powell's appearance shows how vulnerable power becomes as soon as it has to be borne personally. Bitcoin reminds us that money can be organized differently. Sometimes that reminder alone is enough.
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In other news
South Korea scraps ban on corporate crypto investments. Listed companies and professional investors have been sidelined for nine years. They are now allowed to invest up to 5% of their own equity in the twenty largest cryptocurrencies, provided they are executed on one of the five major Korean exchanges. In total, around 3500 entities are eligible under the new rules. Whether dollar-backed stablecoins are covered is still under discussion.
BNY Mellon backs tokenized bank deposits. The US banking giant has launched a service that allows customers to move and use deposits via blockchain infrastructure. These deposit tokens can be used for payments, collateral, and leveraged transactions, with faster settlement as the main advantage. This is not a disguised form of stablecoins, but traditional bank deposits given a digital form.
Morgan Stanley takes the next step towards crypto. According to Barronās, the bank plans to enable trading in Bitcoin, Ether, and Solana via E*Trade in the first half of 2026. A proprietary digital wallet will follow later in the year. At the same time, Morgan Stanley is exploring the tokenization of shares in private markets. The move fits into a broader strategy in which crypto is integrated into wealth management and capital markets.
Another data breach at hardware wallet manufacturer Ledger. This time, hackers managed to obtain sensitive data via a payment processor. This does not mean that your hardware wallet has suddenly become unsafe. ItĀ does mean that you need to be extra vigilant about any communications that appear to be sent from Ledger in the coming weeks. You may receive letters by post, phone calls, or other prompts designed to get you to take action, for example.
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Satoshi Radio: The first episode of 2026 focuses on the troubled start of the year. Geopolitical tensions set the tone. Unsurprisingly, the crypto world hasnāt been a dull place either, with lots of developments. For example, the hosts discuss new ETF plans from Morgan Stanley, regulations in Europe and the US, and the Ethereum community looking back on 2025. As usual, the episode ends with a market update.
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.