Today's Cryptocurrency News (December 24) | Polymarket account hacked; Arthur Hayes converts ETH to DeFi tokens

This article summarizes cryptocurrency news as of December 24, 2025, focusing on the latest Bitcoin updates, Ethereum upgrades, Dogecoin trends, real-time crypto prices, and price forecasts. Major Web3 events today include:

1. Florida Pension Fund Increases Bitcoin Exposure, Invests $47 Million in MicroStrategy Stock

As MicroStrategy (MSTR) stock continues to strengthen, the Florida pension fund has recently taken significant investment actions by increasing its holdings in related stocks to indirectly gain exposure to the Bitcoin market. According to the latest disclosures, the fund has purchased approximately $47 million worth of MicroStrategy shares. This move indicates that, without directly holding Bitcoin, the Florida pension fund has gained an asset exposure highly correlated with Bitcoin prices.

MicroStrategy is currently one of the largest publicly traded companies holding Bitcoin, with a substantial portion of its balance sheet in BTC. Founder and Executive Chairman Michael Saylor has long publicly supported Bitcoin, viewing it as an important reserve asset to hedge inflation and enhance long-term corporate value. Therefore, investing in MicroStrategy stock has become an important alternative route for institutional investors to participate in Bitcoin markets.

For public funds like pension funds, directly purchasing and custody of Bitcoin still face certain compliance, accounting, and operational hurdles. In contrast, buying Bitcoin-related stocks allows sharing potential gains from Bitcoin price increases while operating within existing financial frameworks. This approach is seen as a safer, more controllable Bitcoin investment strategy.

In recent years, more state-level funds and public pension funds have begun to focus on Bitcoin and related assets. Analysts note that this trend reflects Bitcoin’s gradual recognition as a new asset class within mainstream finance. For pension funds, allocating to stocks like MicroStrategy, which are highly correlated with Bitcoin, helps diversify investment portfolios and potentially increase long-term returns.

From a market impact perspective, continued inflows from public funds could further boost demand for Bitcoin-related stocks. Since MicroStrategy’s stock price is highly linked to Bitcoin’s price movements, a rise in Bitcoin’s price often benefits related stocks, which also encourages institutional participation.

Looking ahead, Florida’s approach may serve as a reference for other states and large institutions. As regulatory clarity improves and market understanding matures, indirect exposure to crypto assets via Bitcoin-related stocks could become a preferred method for traditional funds entering the crypto space. This also demonstrates that Bitcoin’s institutional investment position continues to rise.

2. Polymarket User Accounts Hacked, Official Response: Related to Third-Party Login Tools

Decentralized prediction market Polymarket recently faced account security controversy. Multiple users reported that their Polymarket accounts were hacked without abnormal activity, with funds quickly transferred out. In response to these incidents, Polymarket officials attributed the issue to an unnamed third-party login service provider.

According to the platform’s response on their official Discord channel, after user reports of fund loss and suspicious login activity, Polymarket confirmed a security incident. Multiple posts on Reddit and X (Twitter) show users receiving login alerts for unauthorized access, with account balances emptied. Some users stated their devices and other accounts were not compromised, but their Polymarket accounts only had $0.01 remaining.

Other users revealed that even with two-factor authentication (2FA) enabled, they lost about $2,000 worth of assets. One user reported that their top 1,000 Polymarket main account was emptied, and even test accounts were affected. These cases further heighten concerns about account security and third-party authentication risks on Polymarket.

Although Polymarket did not specify the exact third-party service involved, many users pointed to Magic Labs. Magic Labs offers email login and automatic crypto wallet creation, lowering barriers for new users to access Web3 platforms, and is widely used for accessing Polymarket and other decentralized apps.

Polymarket acknowledged the existence of security vulnerabilities but did not disclose the number of affected users or the scale of stolen funds. A company spokesperson stated that the issue stemmed from vulnerabilities introduced by the third-party authentication provider, which has now been fixed. The platform claims no ongoing security risks and will proactively contact affected users.

As of now, neither Polymarket nor Magic Labs has responded further to external inquiries. This incident has reignited industry discussions on third-party login tools, security custody solutions, and user asset protection mechanisms on decentralized platforms. As prediction markets and Web3 user bases grow, account security and identity verification are likely to become key competitive factors.

3. DWF Labs Completes First Physical Gold Transaction of 25 Kilograms, Accelerating Traditional Commodities Market Entry

Crypto market maker DWF Labs has taken a significant step into traditional commodities by completing its first physical gold transaction, involving a 25-kilogram gold bar. This move marks DWF Labs’ transition from solely crypto assets to systematically entering the traditional commodities market, exploring the integration of digital finance and physical assets.

The gold transaction occurred amid rising gold prices. In an environment of increasing global inflation, macroeconomic uncertainty, and geopolitical risks, gold’s appeal as a safe-haven asset has surged. DWF Labs’ entry into the physical gold market at this time is seen as a strategic and forward-looking move.

Long known as a liquidity provider and market maker in the crypto space, completing a physical gold trade signifies an extension of its business scope into tangible assets. A 25 kg gold bar has high asset value and sends a clear signal: DWF Labs is attempting to bridge crypto financial infrastructure with traditional assets.

For investors, this move also has practical significance. Some institutional and high-net-worth investors prefer allocating to low-correlation assets like gold during volatile markets. Engaging in gold trading through blockchain and digital systems could bring higher efficiency and innovative models to traditional commodities investing.

From an industry perspective, DWF Labs’ action reflects an accelerating trend of crypto institutions expanding into traditional finance. Future developments may include products combining physical gold, other precious metals, or energy assets with crypto settlement, tokenization, or on-chain clearing.

Overall, DWF Labs’ completion of its first physical gold transaction is not only an asset allocation experiment but also a key signal of crypto market makers’ move into traditional commodities. In the context of high gold prices, this strategy could open new avenues for diversification and long-term growth.

4. Mentei Gorge Hacker Possibly Sold 1,300 BTC in 7 Days, Still Holds 4,100 BTC

According to Arkham analyst Emmett Gallic, the entity related to the Mentei Gorge hacker Aleksey Bilyuchenko has deposited 1,300 BTC (worth about $114 million) into unknown trading platforms over the past 7 days. The address still holds 4,100 BTC (worth $360 million). In total, they have sold 2,300 BTC.

5. US Debt Interest Exceeds $1 Trillion, Stablecoins May Become Key Variable Under US Debt Pressure

The US government faces unprecedented fiscal pressure. In FY2025, US federal debt interest payments surpassed $1 trillion for the first time, exceeding defense spending and also surpassing Medicare, setting a record. This change has sparked widespread debate on US fiscal sustainability and has brought high attention to the role of stablecoins in the macro financial system.

Data shows that in FY2020, net interest expense was only $345 billion, but by 2025 it neared $970 billion; including all public debt interest, the total officially crossed $1 trillion. The Congressional Budget Office projects that over the next decade, total interest payments could reach $13.8 trillion, nearly double the past twenty years. Some institutions warn that in a more pessimistic scenario, annual interest could rise to $2.2 trillion by 2035.

The core issue is the imbalance between debt and economic size. US federal debt is now about 100% of GDP and expected to continue rising over the next decade. This structure has a clear “self-reinforcing” characteristic: the government needs to borrow more to pay existing interest, and if market confidence wanes or interest rates rise, debt burdens will increase further, creating a potential debt spiral.

This outlook has triggered intense reactions on social media, with keywords like “Weimar-style inflation” and “buy gold” frequently appearing, reflecting concerns over fiat stability. In the short term, large debt issuance has absorbed market liquidity, and with risk-free rates near 5%, stocks and crypto assets face valuation pressures.

Long-term, stablecoins are increasingly seen as strategically significant. The recently passed “GENIUS Act” in 2025 requires stablecoin issuers to hold 100% USD or short-term US debt reserves, effectively making them structural buyers of US debt. Standard Chartered estimates that stablecoin issuers may absorb about $1.6 trillion of US debt over the next four years, becoming a major force in the global debt landscape.

In the context of debt repayment, US regulation and acceptance of stablecoins are no longer just about financial innovation but part of the self-regulation of the fiscal system. As traditional systems come under pressure, crypto assets and stablecoins may play a more critical role in global capital flows.

6. Airdropped Tokens: Hold or Sell? Data Reveals Most Projects’ Tokens Drop by Over 50% After Issuance

The debate over whether “airdropped tokens should be held long-term or sold quickly” has once again become a hot topic in crypto. A recent on-chain and market data analysis shows that most airdropped tokens perform far below expectations after issuance, with rapid price declines becoming the norm. This has led to the view that “cash out immediately” is increasingly seen as a more rational strategy.

Crypto trader Didi shared his airdrop records over the past year on X, with harsh results: out of 30 received airdrops, only 1 token is currently above its issuance price (TGE). Among these, M3M3 fell 99.64%, Elixir down 99.50%, USUAL down 97.67%; even well-known projects like Magic Eden dropped 96.6%, Jupiter down 75.9%, Monad over 39%. The only token with positive return is Avantis, up 30.4%.

Didi states that long-term holding of altcoins is inherently low probability, with losses far more common than sustained gains. He emphasizes that, in the current market environment, prioritizing capital preservation and locking in profits is more logical than “faithful holding.”

Institutional research supports this view. Memento Research analyzed 118 token issuance events in 2025, finding that 84.7% of tokens are now below their TGE valuation, with 65% experiencing declines near or exceeding 50%, and over half dropping more than 70%. Especially for projects with initial fully diluted valuation (FDV) over $1 billion, nearly all are in loss.

The study indicates that the lowest-valued projects have the highest survival rate, with about 40% still profitable, while overvalued projects are being re-priced by the market, with median declines of 70–83%. This reflects a systematic correction of “overvalued, low-maturity” tokens.

Meanwhile, investor enthusiasm for airdrops is waning. Compared to early “simple participation, high returns” models, 2025’s airdrop mechanisms have higher thresholds, longer cycles, more complex unlocks, but significantly lower actual returns. Some analysts believe that “witch attacks” and mechanism abuse further erode fairness and attractiveness.

Overall, data clearly shows that most airdropped tokens face strong selling pressure and valuation reversion after issuance. In the context of normalized overvaluation and market rationalization, whether airdrops are worth holding long-term is becoming an increasingly cautious question.

7. Arthur Hayes Moves 682 ETH Back to CEX: Ethereum Under Pressure, DeFi Rotation Signals Emerge

Recently, legendary trader Arthur Hayes has again attracted market attention. On-chain data shows he transferred 682 ETH into mainstream centralized exchanges, worth about $2 million at current prices. This move is widely interpreted as a potential sell signal, reinforcing market expectations that Hayes is betting on DeFi and temporarily bearish on ETH.

Lookonchain reports that Hayes has been systematically reducing his ETH holdings, shifting funds into yield-oriented DeFi tokens. Data shows he previously sold about 1,871 ETH (roughly $5.53 million) and allocated the proceeds into DeFi projects like ENA, PENDLE, and ETHFI. Over the past week, he invested millions of dollars into Ethena, Pendle, and ether.fi ecosystems, indicating strong confidence in DeFi yield models and protocol tokens.

In terms of fund flow, Hayes has recently transferred large amounts of ETH to Galaxy Digital and Flowdesk, with over $3.5 million transferred between December 19–20 alone. This ongoing ETH outflow is viewed as part of his core strategy to “sell ETH and rotate into DeFi.” Hayes has also publicly stated that, with marginal improvement in fiat liquidity, high-quality DeFi projects have the potential to outperform mainstream crypto assets.

Under this bearish signal, ETH price remains under pressure, currently around $2,900, below the $3,000 resistance. Some technical analysts suggest that if ETH cannot recover the $3,000 level effectively, further downside to the $2,800 range cannot be ruled out.

Additionally, market selling pressure is not solely from Hayes. A large Ethereum fund manager, ETHZilla, recently sold over 24,000 ETH to repay loans, further adding to downward pressure. Overall, ETH is in a phase of capital rotation and sentiment battle, with Hayes’ shift to DeFi acting as an important market indicator for ETH’s medium-term trend.

8. Analyst: Metaplanet Stock Could Surge 1500% by 2027

Japanese Bitcoin asset management firm Metaplanet’s recent capital and Bitcoin reserve plans continue to boost bullish expectations. Many analysts in the Bitcoin fund management space believe that, if macro and crypto market conditions align, Metaplanet’s stock could see significant gains by 2027.

Analyst Hermes Lux predicts that Metaplanet’s US OTC stock MPJPY could rise about 1500% by the end of 2027, with a potential 402% increase in 2026. This is based on two key assumptions: first, Bitcoin’s price maintains an average annual growth rate of about 40%; second, Metaplanet plans to increase its Bitcoin holdings to 100,000 BTC by 2026 and further to around 210,000 BTC by 2027.

In the short term, Metaplanet’s stocks have already begun to outperform. There are three related stocks: MPJPY (collateralized), MTPLF (uncollateralized) traded on US OTC, and 3350 listed on Tokyo Stock Exchange. Over the past month, these stocks have rebounded 6% to 28%, while Bitcoin’s price increased less than 1%, creating a stark contrast. Meanwhile, Strategy (MSTR) declined about 12%, highlighting market valuation differences for Metaplanet’s Bitcoin strategy.

Fundamentally, Metaplanet’s model is similar to Strategy’s, both issuing common stock, preferred stock, and credit instruments to increase Bitcoin holdings. However, Metaplanet also plans stock buyback programs and does not need to sell its Bitcoin reserves for capital operations, which is viewed positively in current Bitcoin corporate holding models.

Valuation metrics show that recent capital plans are key catalysts for 2026 stock prices. Its mNAV (enterprise value to crypto net asset value ratio) has risen from 0.93 in Q4 2025 to 1.25. Analysts suggest that in the next Bitcoin bull market, mNAV could expand to 1.4x or even 3–5x, significantly amplifying Metaplanet’s stock price.

On the funding side, Metaplanet has attracted international institutional interest. Norway’s long-term funds have invested about $400 million, with expectations of resuming large-scale Bitcoin accumulation in 2026. Currently, Metaplanet holds 30,823 BTC and plans to add about 70,000 BTC in 2026.

Overall, driven by long-term Bitcoin bullishness, corporate Bitcoin reserve expansion, and potential mNAV growth, Metaplanet’s stock is viewed as a high-elasticity asset at the intersection of crypto and traditional markets in the coming years.

9. Russia Accelerates Crypto Regulation Under Sanctions, Central Bank Plans to Open Crypto Trading and Strengthen Compliance Framework

Amid ongoing Western sanctions, Russia is rapidly adjusting its crypto regulatory stance. The Russian Central Bank recently drafted a new crypto regulation blueprint, aiming to cautiously open the domestic crypto market to retail and professional investors. This move is seen as a significant signal of Russia re-evaluating its digital asset strategy under sanctions.

Bloomberg reports that the new framework will categorize investors. Non-qualified investors, after passing a basic knowledge exam, can purchase highly liquid cryptocurrencies but must operate through a single intermediary, with an annual trading cap of 300,000 rubles (~$3,800). Qualified investors, after completing risk awareness tests, can trade most cryptocurrencies without limits, excluding anonymous tokens.

The Central Bank has submitted this regulatory plan and related legislative amendments to the government, aiming to establish formal crypto trading regulation by July 1 next year. Details are not yet public, but this direction marks a major shift. In early 2022, the Central Bank publicly advocated banning crypto issuance and use, citing threats to financial stability and comparing crypto to pyramid schemes.

While the stance has softened, the Bank emphasizes risk control and states that cryptocurrencies remain high-risk assets. Future crypto trading will be conducted through licensed entities, including exchanges, brokers, and trust management firms, with differentiated regulatory standards.

The new rules also permit Russian residents to buy cryptocurrencies abroad and transfer them via domestic intermediaries, subject to tax reporting and disclosure. However, the government remains firm in banning the use of Bitcoin and other cryptocurrencies as legal tender domestically; all domestic payments must be settled in rubles.

This policy shift continues Russia’s trend from early 2024 of easing restrictions on corporate crypto use. As sanctions cut off some banks from the global financial system, digital assets are increasingly used in cross-border settlements. Overall, Russia is seeking to build a more rigorous yet practical crypto regulatory system balancing financial sovereignty, risk management, and actual market needs.

10. Logan Paul Auctions $5.3 Million Record Pokémon Card, Sale Price May Reach $12 Million

Social media influencer and WWE star Logan Paul recently announced he will auction one of the rarest Pokémon cards—the Pikachu illustrator card. He bought this card in 2021 for about $5.3 million, setting a Guinness World Record as the most expensive Pokémon trading card sold in private transactions. The sale is seen as a major liquidity event for Logan Paul amid a high cycle in collectibles markets.

The Pokémon card will be auctioned through the globally renowned sports memorabilia and collectibles auction house Goldin Auctions. As part of the deal, Logan Paul received a $2.5 million prepayment from Goldin Auctions founder and CEO Ken Goldin, indicating high market valuation confidence.

The auction process is also featured in Netflix’s new season “King of Collectibles: The Goldin Touch,” which launched on December 23. Goldin stated the card will go live on Goldin Auctions’ website on January 12, with an expected final price between $7 million and $12 million, potentially setting a new record for Pokémon collectibles.

Notably, Logan Paul previously rejected a private offer of up to $7.5 million, reflecting the rapid appreciation of high-end Pokémon cards in recent years. Goldin notes that rare collectibles are increasingly viewed as alternative assets, attracting more high-net-worth individuals, especially in Pokémon cards, sports cards, and cultural IP collectibles.

The timing of this auction is also symbolic. Pokémon will celebrate its 30th anniversary in 2026, with many fans who grew up with the franchise now in high-income brackets, actively competing for top collectibles. This generational shift is seen as a key long-term driver of Pokémon card prices.

Amid ongoing collectibles investment enthusiasm, Logan Paul’s auction is not only a key personal asset move but also an important indicator for the valuation of Pokémon cards and high-end collectibles.

11. Regulatory Environment Improves, Mergers and Acquisitions Reach New High of $8.6 Billion in 2025

Against the backdrop of clearer regulation, 2025 saw the most active year ever for the crypto industry. With policy shifts in Washington, crypto firms have been active in M&A, strategic investments, and industry consolidation, with total transaction volume reaching $8.6 billion, a new record.

Data shows that in 2025, the industry completed 267 deals, including exchange acquisitions, infrastructure integrations, and institutional-level business setups, up 18% year-over-year. The total transaction scale is about four times that of 2024, reflecting a significant rebound in long-term confidence.

Among notable deals, the largest was the US’s largest compliant CEX acquiring derivatives platform Deribit for about $2.9 billion in May, one of the biggest M&A cases in crypto. Another major deal involved a CEX acquiring US retail futures platform NinjaTrader for $1.5 billion, seen as a milestone for traditional finance-crypto integration.

Additionally, blockchain payments firm Ripple accelerated its institutional market expansion by acquiring crypto broker Hidden Road for $1.25 billion in April, further extending its influence in traditional finance.

Beyond M&A, 2025 is also called the “Year of Crypto IPOs.” Eleven crypto-related companies went public, raising a total of $14.6 billion, far exceeding the $310 million in 2024. Stablecoin issuer Circle listed on NYSE with a valuation of $16.7 billion, becoming one of the most prominent IPOs. Peter Thiel-backed Bullish also went public, with a valuation of about $13 billion.

Market analysts believe that clearer regulatory frameworks are key to driving activity and capital inflows. As policy uncertainty diminishes, more traditional financial institutions are entering crypto via M&A and investments. Looking ahead, the ongoing wave of crypto M&A and IPOs is expected to continue into 2026.

12. Spain Accelerates Implementation of MiCA and DAC8, Leading in Crypto Regulation Ahead of US

In the global crypto regulation race, Spain is rapidly emerging. The country plans to fully implement the EU’s Markets in Crypto Assets Regulation (MiCA) and the Administrative Cooperation Directive (DAC8) by early 2026, significantly ahead of the US. These measures are expected to position Spain as a key regulator of crypto assets in Europe and globally.

According to local media, Spain aims to fully roll out the MiCA framework by mid-2026 and simultaneously implement DAC8. DAC8, effective from January 1, 2026, focuses on crypto taxation and information reporting, requiring exchanges and service providers to automatically report user transactions, balances, and flows to EU tax authorities. This will greatly reduce anonymity in crypto trading, making sales, exchanges, and transfers more transparent and improving compliance and tax enforcement.

While MiCA officially took effect across the EU on December 30, 2024, Spain has set a longer transition period for existing crypto service providers, allowing them to operate under the old rules until July 1, 2026. This arrangement aims to ensure market stability and provide a buffer for compliance upgrades. Overall, the combination of MiCA regulation, Spanish crypto tax policies, and DAC8 data reporting creates a clearer, more predictable regulatory environment for investors and institutions.

In contrast, the US remains relatively lagging. Although the “Clear Framework” bill passed the House early 2025, progress in the Senate has been slow, with no final decision from key committees. Market concerns about ongoing regulatory uncertainty persist.

Industry insiders believe that a clear and transparent legal framework is crucial for attracting institutional capital. If the US continues to delay, it risks losing competitive advantage in global crypto regulation and innovation.

13. Hong Kong Finance Bureau and SFC: Virtual Asset Trading and Custody Services May Be Included in Regulatory Framework

Hong Kong’s Financial Services and the Treasury Bureau (FSTB) and Securities and Futures Commission (SFC) jointly issued a consultation summary on licensing proposals for virtual asset trading and custody service providers. They announced further public consultation on licensing for other virtual asset service providers and virtual asset management services, with a one-month period.

14. US Stocks Hit New Highs, Crypto Markets Show Fatigue: Bitcoin Under Pressure, Funds Seek Safe Havens

Despite global stock markets continuing to reach new highs, the crypto market remains weak. On Wednesday, Bitcoin and several major digital assets declined collectively, with total crypto market cap down about 1.4%, falling to $2.97 trillion, again below the key $3 trillion level, indicating insufficient rebound momentum.

Bitcoin hovered around $86,900, failing to break the $90,000 psychological level for the third consecutive day. Ethereum fell about 1.5%, to around $2,927. Meanwhile, Solana, XRP, and Dogecoin declined more sharply, with SOL dropping nearly 3% in a single day, reflecting high-beta assets under pressure. This suggests that, amid cautious macro conditions, investor appetite for high-risk crypto assets is waning.

In contrast, global equities remain optimistic. Strong US economic data has boosted earnings expectations, with MSCI’s global index rising for the fifth straight day, up 21% year-to-date. Asian stocks edged higher, with tech stocks performing well, and the S&P 500 recently hitting new all-time highs. However, holiday season trading volume is low, and European markets are cautious at open.

FxPro chief analyst Alex Kuptsikevich notes that repeated crypto rebounds have failed, with a seller-dominated pattern emerging. Large investors prefer cautious trimming in low-liquidity environments rather than volatile retail-driven swings, indicating a market closer to early bear phases. He also highlights that rising gold prices, a weakening dollar, and Bitcoin’s underperformance signal a reassessment of risk appetite.

Capital flow data supports this view. CoinShares reports that last week, global crypto investment products saw net outflows of $952 million, with Bitcoin funds outflow of $460 million and Ethereum funds outflow of $555 million. Only XRP and Solana funds saw small inflows, indicating ongoing structural divergence. Overall, Bitcoin’s price trend, Ethereum’s market performance, and capital outflows are key focus points in current crypto sentiment.

15. Yi Lihua: ETH’s Future Target of $10,000, Currently the Best Entry Zone

Yi Lihua posted on X that he believes now is the best entry zone for ETH and is optimistic about a 2026 bull market, setting a future target price of $10,000. He reviewed past experiences, recalling that he sold out during BTC’s $7,000–8,000 range due to inability to tolerate bear markets, missing the subsequent rally to nearly $69,000. Regarding the current market, he states he exited at the top around $1,011 but is now continuing to accumulate, advocating trend-following and patience.

16. “Maji” Huang Licheng Continues to Buy Low and Sell High ETH, Sets Take-Profit Orders Up to $2,980

On December 24, according to HyperInsight, over the past 10 hours, Huang Licheng has been continuously increasing ETH long positions by adding 475 ETH at prices around $2,932–$2,942, increasing holdings by about $1.4 million. He then placed partial take-profit orders between $2,960 and $3,125, some of which have been partially filled. Data shows he has held ETH longs since December 17, repeatedly buying low and selling high, rolling over positions. His ETH holdings have grown from $13.2 million to $21.62 million, with an average price of $2,978, currently showing an unrealized loss of about $110,000 (~13%), with a liquidation price around $2,870. Previously, he closed all positions in HYPE and ZEC longs.