ETH open interest on Binance exceeds $10 billion as speculative trading dominates price action, signaling high leverage and volatility.
Japan drafts strict crypto infrastructure laws following the DMM hack, while the Bank of England’s £20,000 stablecoin cap sparks industry backlash.
Ripple’s expanding ODL network and strong institutional support lift XRP 11% as Bitcoin reclaims $106,000, boosting market sentiment.
The global cryptocurrency market has commenced the new week marked by speculation among trading participants, regulation within the crypto sphere, and an expectation of renewed bullish sentiment. Ethereum's growth in derivatives activity at Binance is contributing to higher volatility.
Japan is considering even stricter infrastructure rules following the $3 billion DMM Bitcoin hack, the Bank of England has proposed a £20,000 cap on stablecoin holdings, and XRP led the major altcoins following a 7% rally as Bitcoin once again traded above $106,000.
The trading volume for Ethereum's contracts on Binance is currently at an all-time high, with open interest exceeding $10 billion, which is the highest open interest since early 2025.
ETH open interest recently moved from $18 billion to a new high of over $19 billion, and the open interest grew at a faster rate than Bitcoin. However, the concentration of positions in one exchange certainly raises the risks of liquidation.
In the past 24 hours, more than $90 million in shorts were liquidated, causing sharp intraday volatility. Ethereum is currently range-bound between $3,300 and $3,700, with limited liquidity suggesting a low probability of a breakout to $4,000 in the near term.
Also Read: Can Ethereum Overtake Bitcoin in Q4? Key Signals Explained
Japan's Financial Services Agency (FSA) is working on a new set of regulations that will require crypto infrastructure service providers to first register with the FSA before offering systems to exchanges.
The move comes after last year’s massive ¥48.2 billion ($3 billion) hack of DMM Bitcoin, where attackers exploited vulnerabilities in vendor software.
The draft proposal, discussed by the Financial System Council, marks a major shift from regulating exchanges to supervising the technology behind them.
The FSA’s recommendations are expected by year-end, and modifications to Japan's Financial Instruments and Exchange Act are likely to be amended in 2026.
The Bank of England unveiled a draft regulatory framework for sterling-denominated stablecoins, proposing temporary holding limits of £20,000 for individuals and £10 million for corporations.
The cap, aimed at preventing rapid deposit outflows from commercial banks, has drawn strong criticism from the crypto industry.
As per the scheme, the companies releasing stablecoins will be required to keep 60% of their reserves in UK government short-term securities and the remaining 40% in deposits at the Bank of England.
Industry leaders, including Coinbase’s Tom Duff Gordon, warned that the cap could hinder adoption and make the UK less competitive.
In one of the UK’s largest crypto-related criminal cases, Chinese national Zhimin Qian is facing up to 14 years in prison after authorities seized over 61,000 BTC (worth more than $6 billion) linked to a multi-billion-dollar Ponzi scheme.
Qian, also known by aliases Yadi Zhang and “Goddess of Wealth,” defrauded more than 128,000 victims in China before fleeing to the UK in 2017.
Her sentencing at London’s Southwark Crown Court is expected to conclude this week. The Bitcoin seizure, one of the largest in the world, demonstrates the expanding overlap between cryptocurrency fraud and cross-border financial enforcement.
Bitcoin spot ETFs saw a net outflow of $1.22 billion last week, which is the third-largest amount withdrawn in a single week on record.
The largest outflows came from BlackRock’s IBIT ETF, at -$581 million, and Fidelity’s FBTC ETF, at -$438 million.
Grayscale’s Bitcoin Mini-Trust and Bitwise’s BITB had slightly positive inflows of $21.6 million and $4.7 million, respectively.
Despite the sell-off, Bitcoin ETFs still had a total net asset value of over $138 billion, or 6.7% of Bitcoin’s total market cap.
Also Read: Bitcoin Price Surges to $106,000 After Weekend Dip: Is the Bull Run Back?
XRP surged 11% to $2.53, breaking out above a month-long period of consolidation, as the broader crypto market rallied following the end of the US government shutdown and Bitcoin’s recovery above $106,000, fueling momentum in altcoins.
Ripple’s growing On-Demand Liquidity (ODL) network, currently active in over 30 countries and processing hundreds of millions of dollars digitally per day, is attracting more and more institutional interest.
Analysts are hopeful that Ripple, which has increased close to a $40 billion valuation and began launching pilot programs with Mastercard, WebBank, and BlackRock for its RLUSD stablecoin, may recapture the $3 price again very soon, with a target of $6 by 2026.
1. Why is Ethereum becoming more speculative?
ETH’s rising derivative open interest on Binance indicates traders are leveraging futures rather than spot buying, driving volatility and short-term swings.
2. What prompted Japan’s new crypto regulations?
The move follows the $3 billion DMM Bitcoin hack, pushing regulators to oversee crypto infrastructure providers directly to prevent systemic vulnerabilities.
3. What does the Bank of England’s stablecoin proposal include?
It sets a temporary £20,000 cap on individual holdings and mandates issuers to back reserves with UK government debt and central bank deposits.
4. Why did Bitcoin ETFs experience major outflows?
Investors withdrew $1.22 billion last week amid profit-taking after October’s rally and caution over global economic conditions.
5. How high can XRP go after its recent surge?
Analysts expect XRP to retest $3 soon, with potential for $6 by 2026 if Ripple’s ODL expansion and stablecoin integration continue driving institutional demand.
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