Happy Wednesday! In today’s newsletter, bitcoin and ether prices drop amid macro fears, South Korea plans to lift its institutional crypto trading ban, Movement Labs is reportedly closing in on $100 million in Series B funding and more.
Meanwhile, outgoing SEC Chair Gary Gensler defends his crypto stance less than two weeks before leaving the agency.
Let’s get started.
Bitcoin and ether prices slide amid macro fears
Bitcoin has dropped around 8% to below $95,000 since briefly breaking back above the $100,000 level on Monday amid rising macro fears.
- Ether fell even harder over the period, sliding 12% to under $3,300, while several other major cryptocurrencies have also witnessed double-digit declines.
- Earlier this week, bitcoin and ether surged on the back of growing market optimism for the pro-crypto incoming administration.
- However, Presto Research analyst Min Jung told The Block that broader markets, including stocks, were faltering amid macroeconomic concerns about sustained inflation.
- “Not just crypto, but both the NASDAQ and S&P 500 fell yesterday, driven by concerns over inflation after ISM data revealed faster-than-expected growth in the U.S. economy,” Jung said. “This heightened fears of persistent inflation, [leading] to a surge in bond yields, with the 10-year Treasury reaching its highest level since April.”
- BTC Markets crypto analyst Rachael Lucas also attributed the heightened volatility to fears of higher interest rates for longer after Federal Reserve Chair Jerome Powell’s December comments.
- Upcoming economic events, such as the release of the FOMC’s latest meeting minutes, CPI data and non-farm payrolls, will influence market sentiment in the days ahead.
- Donald Trump’s upcoming inauguration on Jan. 20 is also expected to cause volatility as investors anticipate potential policy shifts, Lucas said.
South Korea plans to lift institutional crypto trading ban
South Korea’s financial regulator plans a phased lifting of its de facto institutional crypto trading ban, according to local media reports.
- The FSC reportedly intends to gradually allow institutional investors to trade on crypto exchanges, starting with non-profit organizations.
- Under South Korea’s current financial information laws, only government-verified retail traders are allowed to trade cryptocurrencies, while the FSC advises banks to forbid institutions from opening crypto exchange accounts.
- Such lifting of restrictions was one of the ruling People Power Party’s election promises to boost the sector, alongside pushing for the launch of local spot crypto ETFs.
Movement Labs reportedly closing in on $100 million in Series B funding
Blockchain development firm Movement Labs is reportedly nearing the completion of a $100 million Series B funding round.
- The round will be co-led by CoinFund and Nova Fund — part of hedge fund Brevan Howard’s digital assets arm, according to Fortune, citing multiple sources close to the deal, valuing the company at $3 billion.
- Investors in the Series B round will receive a mix of equity and the project’s native Move token, with the deal expected to close by the end of January.
- Movement Labs previously raised $38 million in a Series A round led by Polychain Capital, announced in April 2025, and $3.4 million in a pre-seed funding round in 2023.
- The prior funding helped support Movement Labs’ mission to bring Facebook’s Move Virtual Machine to Ethereum.
SoSoValue hits $200 million valuation with $15 million Series A round
Crypto market data provider SoSoValue, best known for its ETF flow data tracking, has raised $15 million in a Series A round led by HongShan (formerly Sequoia China) and SmallSpark.ai.
- The round was structured as a simple agreement for future equity (SAFE) and brought SoSoValue’s valuation to $200 million, co-founder May Wang told The Block.
- SoSoValue raised $4.15 million in its seed round in June last year, bringing its total capital raised to $19.5 million amid plans to expand its workforce by at least 50% this year.
- Wang added that the $200 million valuation reflects SoSoValue’s soon-to-be-launched token on a fully diluted basis — marking a 300% increase from its $50 million post-seed valuation.
Canaan unveils a Bitcoin miner that doubles as a home heater
Blockchain hardware manufacturer Canaan launched the Avalon Mini 3, a 37.5 TH/s Bitcoin miner that doubles up as a home heater, aiming to make mining accessible and practical for residential use.
- The Avalon Mini 3 offsets energy costs by recycling heat from the mining process to effectively warm living spaces, with a current preorder price tag of $899.
- Canaan also unveiled the 6 TH/s “beginner-friendly” Avalon Nano 3S at CES 2025 in Las Vegas, designed to serve as an affordable and portable Bitcoin mining solution.
In the next 24 hours
- U.S. markets are closed on Thursday in observance of a national day of mourning for former President Jimmy Carter.
- U.S. FOMC members Patrick Harker, Thomas Barkin and Michelle Bowman are scheduled to speak at 9 a.m., 12:40 p.m. and 1:35 p.m. ET, respectively.
- CES 2025 continues in Las Vegas.
Never miss a beat with The Block’s daily digest of the most influential events happening across the digital asset ecosystem.
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