Bitcoin rebounded above $90,000 midweek as crypto markets steadied after a sharp sell-off, while French banking group BPCE prepared to open crypto trading to millions of customers and policymakers from Japan to China continued to shape sentiment. Analysts were split on whether the latest bounce marks a durable bottom or a pause within broader consolidation.

Banking and policy developments

France’s Groupe BPCE plans to enable retail clients to buy and sell Bitcoin (BTC), Ether (ETH), Solana (SOL) and USD Coin (USDC), expanding access to digital assets for millions of customers. The move underscores ongoing integration of crypto within mainstream financial platforms across Europe.

In Asia, China’s central bank reaffirmed the country’s 2021 ban on cryptocurrency trading and vowed to crack down on stablecoins, citing signs of renewed activity. Separately, U.S. lawmakers continued to advance crypto-related legislation, though progress remains incremental.

Bitcoin rebounds as markets consolidate

BTC/USD posted an 8% daily gain on Wednesday, recovering from a weekend slide that briefly pushed prices below $84,000. By Tuesday U.S. morning hours, Bitcoin had reclaimed the $90,000 handle and was recently near $91,000, trimming losses from the prior two sessions. The latest bounce followed a drawdown of up to 36% from the Oct. 6 all-time high near $126,000.

Market breadth remained uneven. Total crypto market capitalization hovered around the low-$3 trillion range after dipping below $3 trillion earlier in the week. Derivatives data showed roughly $400 million in long positions liquidated during the downturn, reflecting thin liquidity and elevated leverage. Sentiment gauges stayed in “fear” territory, with a modest uptick from deeply depressed levels.

Equities and government bonds stabilized after a global risk-off move linked to expectations of tighter policy in Japan. The Kobeissi Letter noted that volatility has frequently clustered around late-week and weekend sessions, with sizable crypto moves on Friday and Sunday nights.

Drivers and outlook: mixed signals

Arthur Hayes, former BitMEX CEO, attributed the latest bout of volatility to shifting expectations around the Bank of Japan. Meanwhile, some traders cited unverified chatter about a more crypto-friendly U.S. Federal Reserve chair as a factor behind Wednesday’s crypto bid; BTC briefly eyed the $94,000 region during the move.

Technical analysts highlighted the first “velocity RSI” reversal signal for Bitcoin since 2022, suggesting a potential local bottom after the recent washout. Others warned that BTC slipping below $90,000 at times and weakness across select altcoins, including Zcash, keep downside risks in play. Coinbase Institutional projected scope for a stronger year-end for Bitcoin, though the forecast remains contingent on macro conditions and liquidity.

Corporate and market microstructure

Shares of American Bitcoin Corp., a U.S.-listed mining company, plunged at the open on Tuesday, dropping more than 40% within the first half hour of trading before stabilizing. The move underscored the ongoing sensitivity of crypto-exposed equities to spot price swings and funding conditions.

On corporate treasury strategy, MicroStrategy CEO Phong Le reiterated that selling Bitcoin would be a last-resort option, considered only if the firm’s adjusted net asset value fell below one and access to capital dried up.

Key levels to watch

• Bitcoin support: $90,000 psychological level; sub-$90,000 tests raise risk of extended consolidation.
• Bitcoin resistance: $94,000 near-term area, followed by recent two-week highs; reclaiming these levels would strengthen the rebound case.
• Market structure: Liquidity and leverage remain pivotal; derivatives positioning could amplify moves into late week.

Groupe BPCE, France’s second-largest banking group, will begin offering in-app cryptocurrency trading to retail customers on Monday, December 8, 2025. The service, integrated into the Banque Populaire and Caisse d’Épargne mobile apps and operated by BPCE’s crypto subsidiary Hexarq, will initially reach around two million clients in four regional banks, with a phased expansion through 2026.

What BPCE is launching

The bank is introducing a native service that allows eligible customers to buy and sell select digital assets directly inside their existing banking apps. Accounts and operations are handled by Hexarq, BPCE’s dedicated digital-asset subsidiary, which has obtained French regulatory approval to provide these services.

Supported assets and pricing

• Assets at launch: Bitcoin (BTC), Ether (ETH), Solana (SOL), and USDC.
• Fees: €2.99 per month for a dedicated digital-asset account, plus a 1.5% fee per trade.

Rollout plan and availability

The initial rollout begins with four regional banks within the Banque Populaire and Caisse d’Épargne networks, covering approximately two million customers. BPCE plans a phased expansion across its regional banks through 2026, ultimately making the service available widely across the two networks.

Why it matters

BPCE’s move brings cryptocurrency trading into mainstream retail banking channels in France, offering direct access to leading digital assets through trusted mobile apps. The integration under a regulated entity such as Hexarq may lower barriers to entry for customers seeking exposure to crypto while keeping activity within the bank’s compliance and risk frameworks.

South Korea is preparing to apply bank-level, no-fault liability standards to cryptocurrency exchanges following a major breach at Upbit that authorities have attributed to North Korea’s Lazarus Group. The Financial Services Commission (FSC) is reviewing rules that would require virtual asset service providers (VASPs) to compensate users for losses from hacks or system failures regardless of fault, aligning crypto platforms with protections already mandated for banks and electronic payment firms.

FSC weighs no-fault compensation for exchanges

The FSC is considering provisions that would obligate crypto exchanges to reimburse customers for losses stemming from security incidents or operational outages, even when the platform is not directly at fault. This approach mirrors the no-fault compensation standard under South Korea’s law governing electronic financial transactions, which currently covers financial institutions and e-money providers. The review follows heightened scrutiny of exchange security and consumer protection after the recent Upbit incident.

Upbit breach and operational response

On November 27, Upbit detected abnormal withdrawals on the Solana network at approximately 4:42 a.m. KST. Investigators say about 44.5 billion won (roughly $30 million) in digital assets were transferred to external wallets within 54 minutes. Upbit halted deposits and withdrawals, deleted existing deposit addresses, and required users to generate new ones as the company rebuilt parts of its wallet infrastructure.

Upbit said it uncovered and repaired a flaw in its internal wallet system during the investigation and pledged full coverage for customer assets. The exchange announced it would resume digital asset transfers on December 1 after reinforcing security controls. Separate media reports cited the operator, Dunamu, as indicating the theft involved a Solana wallet vulnerability; the company has not publicly detailed the technical exploit.

Attribution to Lazarus and ongoing supervision

South Korean authorities have attributed the attack to the Lazarus Group, alleging the hackers impersonated administrative personnel to facilitate unauthorized transfers and then deployed laundering tactics to move the funds. The Financial Supervisory Service has conducted on-site reviews through December 5, with additional regulatory pressure expected to strengthen custody and key-management standards across the industry.

Policy outlook and broader implications

The Upbit incident has intensified debate over digital asset risk management and consumer safeguards in South Korea as the government advances broader crypto regulation. Officials have set January 2026 as the target for passing the Digital Asset Basic Act, a framework expected to address stablecoins, market integrity, and custody requirements. Extending no-fault liability to VASPs would mark a significant shift, aligning crypto platforms with the accountability standards applied to traditional financial services.

Italy’s financial markets regulator, Consob, has set firm deadlines for cryptocurrency service providers operating in the country, requiring firms to secure authorization under the EU’s Markets in Crypto-Assets Regulation (MiCA) or exit the market. The move ends Italy’s lighter registration regime and ushers in a stricter, license-based framework aimed at investor protection and market integrity.

Key deadlines for crypto platforms

• December 30, 2025: Consob says virtual asset service providers (VASPs) that do not intend to seek authorization as crypto-asset service providers (CASPs) under MiCA must cease operations in Italy by this date, close existing contracts, and return crypto-assets and related funds to customers.
• June 30, 2026: According to the regulator, a firm that misses the filing date for authorization must stop Italian operations by this date and return client assets.

From registration to authorization

The reminder confirms that Italy’s previous registration model will no longer suffice. To continue serving Italian users, firms must obtain MiCA authorization and demonstrate robust governance, transparency, and internal controls. MiCA introduces stricter oversight across custody, trading, reporting, and other operational standards, aligning Italy’s approach with broader EU policy.

Orderly exits and investor safeguards

Consob emphasized that operators choosing not to pursue MiCA authorization must follow orderly exit procedures. This includes terminating existing contracts, returning customer assets, and publishing clear notices to clients. The regulator frames the transition as necessary to build a more accountable and resilient market structure.

Broader policy backdrop

The notice comes as many exchanges, wallet providers, token issuers, and custodians work to meet MiCA’s requirements. Separately, Italy’s Economy Ministry has ordered an in-depth review of safeguards against cryptocurrency risks, a move acknowledged by the Bank of Italy and other financial regulators. Together, the measures mark a supervised phase for crypto activity in Italy that mirrors the EU’s tightening regulatory standards.

Crypto mergers and acquisitions accelerated in 2025, led by multi-billion-dollar exchange deals and a renewed push into regulated derivatives and prediction markets. Coinbase completed a high-profile purchase of derivatives platform Deribit, while South Korea’s Naver moved to take full control of Upbit operator Dunamu. Overall dealmaking surpassed prior records, according to multiple company statements and media reports.

Record year for crypto M&A

Companies in the digital asset sector announced more than $8.6 billion in acquisitions and mergers in 2025, the highest annual value to date, according to Bloomberg. Coinbase led the activity with six acquisitions, including its purchase of Deribit, one of the world’s largest crypto options and futures venues.

Naver to acquire Upbit parent Dunamu

Naver Financial, a unit of South Korean internet giant Naver, agreed to acquire Dunamu—operator of the country’s largest cryptocurrency exchange, Upbit—in an all-stock deal valued at approximately 15.13 trillion won (about $10.27 billion). Upon closing, Dunamu will become a wholly owned subsidiary of Naver Financial, aligning the group’s expansion into digital finance and blockchain with its broader technology strategy.

Local reports indicated the combination could create a fintech group valued around 20 trillion won (roughly $13.6 billion). Dunamu’s consolidated revenue for the first nine months of 2025 rose 22% year-over-year to 1.19 trillion won, with trading platform operations, including Upbit, contributing approximately 97.9% of total revenue.

Coinbase closes Deribit acquisition

Coinbase announced the acquisition of Deribit on May 8, 2025, and closed the deal on August 14. The transaction was reported at $2.9 billion, with additional disclosures indicating a combined cash-and-stock consideration of roughly $4.3 billion. The purchase expands Coinbase’s presence in crypto derivatives, a segment that has become a major driver of exchange volumes.

Robinhood and SIG target prediction markets via LedgerX

Robinhood Markets and Susquehanna International Group formed a joint venture to expand into prediction markets and will take control of LedgerX, a regulated crypto derivatives exchange previously owned by Miami International Holdings. LedgerX, which had ties to the former FTX group under prior ownership, remains one of the few regulated venues for crypto derivatives in the United States.

Paxos adds infrastructure as consolidation continues

Paxos acquired Fordefi, adding wallet and institutional infrastructure to its product suite. The deal follows Paxos’s February acquisition of Membrane Finance, a Finland-based stablecoin issuer, positioning the company to meet requirements under the European Union’s Markets in Crypto-Assets (MiCA) regime.

Other developments

• ABTC, which listed on Nasdaq via a reverse merger with Gryphon Digital Mining in early September, fell by more than half in early trading after its debut.
• Animoca Brands plans a public listing through a reverse merger next year, aiming to provide broader exposure to altcoin and Web3 projects, according to co-founder Yat Siu.

Together, the year’s transactions underline a shift toward scale, regulated derivatives, and integrated fintech platforms, even as crypto markets remain volatile. Further disclosures and closings in the fourth quarter will determine whether 2025 sets a lasting benchmark for sector consolidation.