Market Volatility and Regulatory Shifts Unfold Across Global Markets in Late December

Late December brought a cascade of significant market developments that rippled across commodities, cryptocurrencies, and regulatory landscapes globally. From record-breaking precious metal valuations to transformative U.S. legislative proposals, the period captured in this Beijing time-stamped data snapshot reveals a market in active transition, with major price movements, policy evolution, and substantial shifts in trader positioning all converging within a compressed timeframe.

Commodities Rally and Records Fall in Late December

Precious metals staged a remarkable ascent in late December. Shanghai silver futures surged past the 16,000 yuan/kg threshold, marking a new all-time high and capping off a year of extraordinary gains—the commodity had accumulated more than 114% appreciation since January. Simultaneously, spot gold broke through the October 20 benchmark of $4,381.4 per ounce, establishing a new record high. These rallies underscore growing investor appetite for safe-haven assets amid global uncertainty and shifting monetary policy expectations.

Cryptocurrency Tax Framework: U.S. House Moves Forward

In a significant regulatory development, bipartisan members of the U.S. House of Representatives advanced cryptocurrency taxation proposals that could reshape how digital assets are treated under federal law. Ohio Republican Max Miller and Nevada Democrat Steven Horsford drafted legislation to establish a tax safe harbor for regulated stablecoins, proposing exemptions for transactions where stablecoin values remain between $0.99 and $1.01. The framework also introduces safe harbor provisions for staking and mining rewards that involve blockchain transaction verification. By aligning digital asset taxation with traditional securities treatment, the proposal grants foreign investors and securities lenders the same capital gains tax exemptions they currently enjoy. Industry observers view this legislative push as a critical step forward after broader regulatory frameworks remained stalled in negotiations.

Beijing Time Data: Major Token Unlocks Loom Large

Scheduled for the Beijing time window starting December 23rd and extending through December 25th, 2025, several substantial token unlock events carry significant market implications. Humanity (H) faces approximately 105 million token unlocking at 8:00 AM Beijing time on December 25th, representing 4.79% of circulating supply and valued at roughly $14.8 million at December timeframe valuations. Plasma (XPL) will release approximately 88.89 million tokens at 8:00 PM Beijing time the same day, constituting 4.5% of circulation and valued near $11.7 million. SOON token will unlock approximately 21.88 million units at 4:30 PM Beijing time on December 23rd, worth around $8 million and representing 5.97% of supply. MBG by Multibank Group will release 15.84 million tokens at 8:00 PM Beijing time on December 22nd ($8.1 million equivalent, 8.42% of supply), while Undeads Games (UDS) unlocks 2.15 million tokens at 8:00 AM Beijing time on December 23rd ($5.2 million, 1.46% of supply). These coordinated releases create a compressed supply shock window that traders monitor closely.

Whale Movements and Leveraged Position Dynamics

Within hours spanning late December, major trader movements shifted market dynamics substantially. A whale liquidated 230,350 AAVE tokens within a three-hour window, converting holdings into approximately 5,869.46 stETH (worth roughly $17.52 million) and 227.8 WBTC (valued near $20.07 million), triggering AAVE price depreciation of approximately 10%. This liquidation coincided with broader market volatility, as approximately $30 million in cryptocurrency futures contracts faced forced closure across all networks within a four-hour span. Bitlight Labs (LIGHT) and Audiera (BEAT) led liquidation volumes, with LIGHT experiencing particularly acute downside—the token plummeted approximately 80% in early Beijing time hours, collapsing from $4.6 to below $0.8, while BEAT tokens registered substantial volatility.

A trader using the moniker “Brother Machi” demonstrated aggressive position management during this volatile window. The address established a 10x leveraged long position in ZEC with approximately $390,000 exposure at entry prices near $439.24, while maintaining a separate 25x leveraged ETH position consisting of 5,200 tokens with $266,000 floating gains and liquidation risk at approximately $2,789. However, this bullish stance reversed dramatically—15 minutes before the period closed, the account liquidated all Bitcoin and HYPE long positions, realizing approximate losses of $1.46 million for the week despite maintaining an 80% win rate (12 profitable versus 3 losing trades across 15 total transactions).

A separate whale showed more selective accumulation behavior. A newly minted wallet withdrew 104,503 LINK tokens from major exchange holdings roughly half an hour into the reporting period, valued at approximately $1.32 million at then-current pricing. This move appeared consistent with broader whale-tracked LINK accumulation patterns, as another major address labeled “0xf44” had withdrawn approximately 630,000 LINK tokens ($8 million) within the preceding two days. Another substantial whale withdrew 2,000 ETH ($5.98 million equivalent at $2,991.65 per token withdrawal price) from exchange wallets, continuing a pattern of profitable swing-trading spanning 11 months, through which this address had accumulated $1.506 million in gains across three distinct ETH trade cycles before initiating its fourth swing attempt.

Policy Stimulus and Credit Reconstruction

China’s People’s Bank of China announced a one-time credit repair initiative targeting individuals whose credit ratings suffered pandemic-related damage but who demonstrated commitment to debt repayment recovery. Records of single overdue payments not exceeding 10,000 yuan, originated between January 1, 2020 and December 31, 2025, and repaid by March 31, 2026, face deletion from credit reporting systems. The PBOC Credit Reference Center will manage implementation uniformly without requiring individual applications, with rollout expected commencing in 2026. Additionally, from January through June 30, 2026, individuals gain access to four free annual credit report inquiries (double the standard allotment) from the Financial Credit Information Basic Database, signaling policy support for credit reconstruction.

Regulatory Stance and Market Governance

Coinbase CEO Brian Armstrong publicly advocated that prediction markets warrant regulation by the U.S. Commodity Futures Trading Commission (CFTC) rather than state-level oversight. Armstrong’s position escalated into litigation, with Coinbase subsequently suing Michigan, Illinois, and Connecticut over prediction market regulatory authority, arguing that state-level restrictions hinder American access to tools enhancing competitive positioning.

Strategic Accumulation Signals and Market Outlook

Michael Saylor, founder and executive chairman of Strategy (formerly MicroStrategy), circulated updated Bitcoin Tracker data on social platforms, signaling continued institutional positioning in the leading cryptocurrency. Based on historical patterns, Strategy typically discloses specific bitcoin accumulation figures within 24 hours following such public announcements, suggesting forthcoming disclosure of its expanded digital asset position.

Market commentary from 10x Research characterized the late December period as one of consolidated downside. Bitcoin prices remained depressed amid global policy uncertainty and legislative delays, while the broader market downturn resisted reversal. Cryptocurrency-listed equities underperformed uniformly—Coinbase’s new product initiatives failed to offset market-wide weakness, and Strategy maintained trading pressure. Despite ARK Invest increasing BitMine holdings, such institutional support proved insufficient to arrest share price declines. Bitcoin mining companies faced headwinds across the board: Bitdeer encountered class-action lawsuit pressures, CleanSpark disappointed on earnings guidance with simultaneous insider selling, Iren received neutral ratings and declined, while TeraWulf’s substantial financing round offered insufficient buffer against equity dilution effects.

Federal Reserve official Hamak suggested that neutral interest rates may exceed conventional expectations while attributing November inflation data strength partly to collection distortions. October government operations suspension and early-November measurement challenges, Hamak indicated, may have underestimated 12-month price growth relative to the Bureau of Labor Statistics’ reported 2.7% year-on-year CPI rise. Adjusted estimates approached the 2.9% to 3.0% forecaster consensus, positioning interest rate discussions within a framework of structural economic strength, as Hamak emphasized the economy’s independent momentum supporting robust 2026 growth prospects without Federal Reserve accommodation requirements.