Overview:

• Security trends improved in December, with crypto hack losses falling nearly 60% to $76 million, though large scams and wallet exploits remain a persistent risk.

• Speculation returned selectively, as PEPE surged 20% and Dogecoin broke key resistance levels, signaling short-term risk appetite despite weak broader sentiment.

• Regulation and institutional activity expanded, with Turkmenistan legalizing crypto operations and firms such as Tether and Bithumb highlighting deeper capital and longer-term holdings in the ecosystem.

As we enter 2026, the cryptocurrency marketplace has been steadily improving its security measures. Increased speculative activity and greater focus on regulation and institutional involvement are now major talking points. Overall, market sentiment continues to be cautious optimism, and recent trends indicate that the consumer base is also beginning to recognize the industry's ongoing structural maturation.

Decline Heavily in Hack Attacks on Crypto Wallets

The December report from PeckShield indicates that losses from crypto wallet hacks declined significantly. In December, total losses from hacks fell by nearly 60% (compared to November) to approximately $76 million, down from $194.2 million in November.

Of the total $76 million in December losses, approximately $50 million was attributed to an address-poisoning scam. In this type of scam, the perpetrators send small amounts of cryptocurrency from wallet addresses that are very similar to legitimate ones to confuse victims into copying down the wrong address.

Other notable incidents included a $27.3 million loss linked to a private key leak in a multi-signature wallet and a Christmas-day exploit of a browser wallet extension that drained about $7 million.

In parallel, US authorities charged a 23-year-old Brooklyn resident with stealing roughly $16 million from around 100 Coinbase users through phishing and social engineering.

PEPE Jumps 20% as Bold 2026 Call Rekindles Memecoin Speculation

PEPE surged more than 20% and briefly reignited talk of a broader memecoin revival. The rally followed a prediction from trader James Wynn, who suggested PEPE could reach a $69 billion market cap by the end of 2026, a 34.5x increase from its current $2 billion market cap.

The forecast quickly spread across crypto social media, triggering a spike in speculative interest and trading activity. 

PEPE’s 24-hour trading volume jumped above $600 million, its highest level in over a month, according to CoinMarketCap. 

Price action accelerated shortly after Wynn’s comments, highlighting how narrative-driven meme assets remain highly sensitive to influencer sentiment.

Also Read: Can Ethereum Hit $3,900 Again? Price Predictions for 2026–2030

Tether Expands Bitcoin and Gold Reserves

Tether CEO Paolo Ardoino said that Tether purchased 8,888 Bitcoin on New Year's Eve, worth approximately $780 million. 

This transaction brought the stablecoin issuer's publicly disclosed Bitcoin holdings to over 96,000 BTC. 

Additionally, Tether acquired 26 tons of gold in the third quarter of 2025, bringing its total gold holdings to 116 tons, placing it among the top 30 largest gold holders globally. 

Paolo Ardoino stated that a portion of Tether's Bitcoin holdings has been injected into Twenty One Capital, a joint venture backed by Tether, which holds 43,514 Bitcoin.

Dormant Crypto Worth $200M Found on Bithumb

South Korean exchange Bithumb revealed it identified more than $200 million in dormant crypto assets across 2.6 million inactive accounts. 

One account alone held $2.84 million after nearly 12 years of inactivity. Some dormant holdings recorded gains exceeding 61,000%, highlighting how early crypto exposure combined with long-term inactivity can generate extreme returns.

The discovery came as part of a dormant asset recovery campaign, with the exchange planning to notify users and assist with account access.

Turkmenistan Legalizes Crypto Mining and Trading Under New Regulatory Framework

Turkmenistan has officially permitted the mining and trading of cryptocurrencies under a new regulatory framework enacted earlier this year.

The law, approved by the President of Turkmenistan, Serdar Berdymukhamedov, at the end of November, is now fully implemented and requires crypto exchanges and mining companies to obtain licenses under a regime monitored by the country's central bank.

Despite not being accepted as legal tender, the law provides a clear definition of the legal and economic status of cryptocurrencies, thereby providing the long-awaited clarity in one of the world's most repressive economies.

Traditionally, Turkmenistan's economy has relied heavily on natural gas, which is considered one of the world's largest reserves. The new framework signals a strategic move to restructure the economy and attract investment in state-controlled digital technology.

Also Read: How to Sell Bitcoin in India Easily: A Step-by-Step Guide

Dogecoin Breaks Key Resistance as Spot-Led Rally Lifts DOGE 7%

Dogecoin rose around 7% as buyers pushed the price above the critical $0.121 resistance level. DOGE climbed to roughly $0.126, its highest level in weeks, on its most substantial trading volume in weeks.

Technical analysts describe the move as a double-bottom breakout, formed after multiple failed recovery attempts near the same resistance zone.

Trading volume surged to approximately 1.23 billion DOGE, nearly 180% above the daily average, confirming demand rather than short-lived derivatives-driven spikes.

Crucially, Dogecoin held above the $0.124- $0.125 area following the breakout, suggesting that buyers were willing to defend the newly reclaimed levels. 

FAQs:

1. Why did crypto hack losses fall sharply in December?
Losses declined mainly due to fewer large-scale exploits, though a single address poisoning scam still accounted for most of the $76 million stolen.

2. What caused PEPE to surge over 20%?
PEPE rallied after trader James Wynn predicted a potential $69 billion market cap by 2026, sparking heavy social media interest and pushing daily trading volume above $600 million.

3. Why is Tether’s Bitcoin and gold accumulation important?
Tether’s growing Bitcoin and gold reserves signal the growing adoption of institutional-style treasury management in crypto, reinforcing confidence in digital assets as long-term balance-sheet holdings.

4. What does Turkmenistan's legalization of crypto mining and trading mean?
The move reflects a strategic effort by a gas-dependent economy to diversify and digitize under state oversight, showing broader global acceptance of regulated crypto activity.

5. Does Dogecoin’s breakout indicate a new rally?
Dogecoin’s spot-led breakout above $0.121 suggests short-term strength, but sustained upside will depend on holding key support levels and broader market momentum.