Crypto Compass by BitcoinWalletSG #147

📉 Bitcoin Slips Below $87K as Bear Market Debate Heats Up? Read it in our weekly newsletter now!

Author

BitcoinWallet SG
December 16, 2025

Hello Fam,

Bitcoin’s dip below $87K this week highlights how sensitive crypto remains to short-term liquidity shifts and macro uncertainty, even as longer-term demand indicators stay intact. At the same time, renewed assurances that the Federal Reserve will remain independent from political influence help anchor expectations around interest rates and monetary policy heading into 2026. Taken together, the message for investors is clear: near-term price swings are likely to persist as markets navigate data and rate expectations, but a more stable policy backdrop could set the stage for a healthier environment for risk assets, including crypto, in 2026.

Bitcoin Slips Below $87K as Bear Market Debate Heats Up

Bitcoin dipped below $87,000 this week as broader risk sentiment weakened, triggering renewed debate on whether the market is entering a deeper bearish phase. Analysts point to rising liquidation levels and on-chain stress indicators similar to early 2022, though spot Bitcoin and Ethereum ETFs continue to see net inflows, suggesting institutional demand remains intact.

Trump Ally Says Fed Would Stay Independent Under His Watch

Kevin Hassett, a senior economic adviser to Donald Trump, said this week that Trump would have “no weight” over Federal Reserve decisions even if he were to influence the appointment of the next Fed chair. The comments aim to reassure markets concerned about political interference in monetary policy, especially as investors remain highly sensitive to rate expectations and liquidity conditions.

US Moves to Bring Crypto Firms Into the Banking System

U.S. regulators have given preliminary approval for major crypto firms, including Ripple, to establish national trust banks, marking a significant step toward deeper integration between crypto and the traditional financial system. While these approvals do not allow full retail banking yet, they enable firms to custody assets and operate under federal oversight, a shift that could improve legitimacy and access for the industry.

đź”” Stay in the Loop if you enjoyed this issue, be sure to:

✅ Subscribe to get next week’s issue in your inbox

📱 Follow us on social media for real-time updates

💬 Got questions or feedback? Just hit reply – we read every message!