An address linked to Arthur Hayes added DeFi tokens again on Dec. 31, Lookonchain data show. Over the past two weeks, the address sold 1,871 ETH (approximately $5.53 million), then bought 961,113 PENDLE (approximately $1.75 million), 2.3 million LDO (approximately $1.29 million), 6.05 million ENA (approximately $1.24 million), and 491,401 ETHFI (approximately $343,000).

Federal Reserve officials are sharply divided on the 2026 rate path, with views nearly evenly split between zero, one or two cuts, the Dec. 31 dot plot showed, after three rate reductions in 2025 brought the target to 3.5%–3.75%, BlockBeats reports. CME data show market-implied probabilities of a January cut at 20% and 45% in March, with most forecasts pointing to only one reduction in 2026. Analysts said that if employment weakens and inflation remains contained, one to two cuts could support risk assets, while a rebound in inflation could pause rate cuts and pressure equities and crypto. Jerome Powell is set to step down in May, and a potentially more dovish successor is viewed as an additional variable for the 2026 crypto market, according to BlockBeats.

On December 31, major whale accounts on Hyperliquid were carrying large unrealized losses on long positions in Ethereum, Bitcoin, and Solana, according to Coinbob data cited by BlockBeats. The “BTC OG Insider Whale” showed about $39.4 million in losses, mainly from ETH longs, while the “CZ Counterparty” faced roughly $27.6 million in ETH and XRP losses. At the same time, accounts such as “The Ultimate Short” and “Altcoin Short Leader” opened new LIT short positions, signaling a tactical shift amid market pressure.

U.S. crypto investors face major tax changes for 2025 trades, with new reporting rules taking effect for the 2026 filing season. Under the rollout of Form 1099-DA, centralized exchanges and brokers will report crypto sales to the Internal Revenue Service, initially focusing on gross proceeds and often excluding cost basis, according to BlockBeats. The shift to wallet-by-wallet cost tracking replaces pooled methods and may lead the IRS to assume a zero cost basis if records are missing. Tax experts warn that reconstructing historical ledgers is complex, and despite transitional relief under IRS Procedure 2024-28, many investors remain unprepared, increasing the risk of reporting errors without early action.

Tom Lee's Bitmine entity purchased 32,938 ETH worth $97.6 million and staked an additional 118,944 ETH valued at $352.16 million over the past four hours, Lookonchain reported. The on-chain activity was tracked using Arkham Intelligence addresses. This follows previous accumulations by the Fundstrat-backed group amid Ethereum's staking ecosystem growth.

Binance founder CZ said on Dec. 31 that Pakistan could join the ranks of leading global cryptocurrency markets by 2030 if it maintains its current pace on regulation and real-world adoption, BlockBeats reports. He praised the country's leadership for moving quickly and recognizing demand for digital assets from its young, tech-savvy population, citing steps such as creating a virtual asset regulator, allowing Binance and HTX to operate in compliance, exploring Bitcoin reserves, and advancing real-world asset tokenization to attract foreign capital and improve liquidity. On stock market tokenization, CZ said this would allow global investors to access Pakistani assets directly and described it as a "truly global investment channel", adding that jurisdictions that move first may see the largest benefits.

Circle has minted $1 billion worth of its USD Coin (USDC) stablecoin on the Solana blockchain, CoinDesk reported. According to the report, when combined with recent Tether issuances, a total of $2 billion in stablecoins has been issued on Solana over the past 11 hours.

BitMine chairman Tom Lee said on Dec. 31 that year-end holiday trading often sees institutions step away, with quant programs, bots and tax-related stop-loss selling dominating, BlockBeats reports. On Dec. 29, CoinShares reported weekly outflows from digital asset products totaled $446 million, bringing the total since Oct. 10 to $3.2 billion and indicating sentiment has not fully recovered.

Prediction market Polymarket is indicating an 87% probability that the U.S. Federal Reserve will not cut interest rates at its January policy meeting, according to data cited by Bitcoin Magazine. The pricing reflects traders’ current expectations based on recent economic data and Federal Reserve communications.