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Bitcoin’s drop below $88,000 highlighted ongoing volatility, while altcoins and AI-driven crypto projects attracted fresh capital during the market pullback.
Institutional activity remained strong, with Tether backing Lightning Network payments and governments improving crypto enforcement capabilities.
On-chain data shows Ethereum pulling further ahead of Bitcoin in real network usage, underscoring shifting adoption dynamics beyond price action.
The December 19 Friday session saw the broader crypto market facing a heavy impact from volatility. Bitcoin price also fell below $88,000. The same day, altcoins, infrastructure, regulators and on-chain adoption. One of the changes in the market was the AI-assisted crypto projects raising millions in their presales, and the regulation getting a new direction.
The Bitcoin price fell to below the $88,000 mark while the cryptocurrency project Ozak AI (OZ), focusing on AI, was getting more and more investor attention.
Despite the overall market feeling being weak, OZ has managed to sell more than 1 billion of its native tokens and to raise $4.9 million in its presale.
The value of Ozak AI's tokens has increased from $0.001 to $0.014, which is a 14-fold increase during the presale period.
Experts who analyze the project predict that if OZ reaches $5 by 2028, the early backers will receive a whopping 400 times return on their investment at the current rate.
Tether was the primary investor in Speed1 Inc.'s $8 million financing round, a firm that processes payments on Bitcoin’s Lightning Network.
Speed has more than 1 million customers and it processes over $1.5 billion in annual transactions, which include consumer, creator and big merchant payments.
Tether stated the investment aligns with its objective of making USDT more useful as a payment method in the real world, especially in areas that use Bitcoin for settlement.
The total supply of USDT has reached $186 billion. The action demonstrates that stablecoin issuers are increasingly investing in payment channels and financial infrastructure rather than just providing liquidity for trading.
The US Securities and Exchange Commission (SEC) said some hosted Bitcoin mining services could fall under US securities laws.
In a lawsuit against VBit, the SEC argued that the company’s hosting agreements met the criteria of investment contracts under the Howey Test, citing pooled hashrate, profit expectations, and lack of investor control.
However, industry executives pushed back, emphasizing that legitimate hosted mining services typically involve direct ownership of mining hardware and electricity, without pooled profits or reliance on promoters.
While the case is notable, experts believe it is unlikely to broadly impact compliant mining operators.
In Asia, Taiwan’s justice system revealed it is currently holding over 210 BTC, worth around $18 million, seized across multiple criminal investigations.
Rather than liquidating the assets, authorities have developed internal systems to securely custody and manage digital assets as financial evidence.
This development underscores a broader shift: governments are becoming technically capable of handling crypto directly.
While Taiwan is not pursuing Bitcoin as a reserve asset, its approach reflects growing institutional familiarity with digital assets, signaling normalization rather than ideological adoption.
Bitcoin spot ETFs recorded a net outflow of $161.32 million on December 18, according to SOSOvalue.
BlackRock’s IBIT was the only Bitcoin ETF fund in the category, with an addition of $32.76 million, while FBTC of Fidelity experienced the largest withdrawal at $170.28 million.
The daily withdrawals did not change the situation of spot Bitcoin ETFs, whose total net asset value still stands at $111.04 billion, with inflows already over $57.5 billion.
Also Read: Bitcoin Rallies Above $87K as CPI Miss Fuels Risk and Liquidity Swings
Ethereum has come a long way: according to Santiment, there are almost 168 million non-empty wallets on the Ethereum network, far more than the 57 million on Bitcoin.
Ethereum achieving this gap shows it is the main actor, in a positive sense, as a blockchain for activities such as DeFi, NFTs, Layer-2 networks, and stablecoins.
Stablecoins, like USDT and USDC, have become particularly active in terms of wallets, thus confirming their status as liquidity bridges.
At the same time, other major altcoins like Dogecoin, XRP, Cardano, and Chainlink have different strategies when it comes to adoption, some being retail-oriented while others acting as backend infrastructure.
Also Read: Ethereum Price Drops: Where is the Next Support Level?
1. Why did Bitcoin fall below $88,000 today?
Bitcoin faced renewed selling pressure amid broader market volatility, ETF outflows, and cautious investor sentiment across risk assets.
2. Why is Ozak AI attracting attention during a market downturn?
Ozak AI raised $4.9 million in its presale and saw strong token demand due to its AI-focused utility, upgrades, and long-term growth projections.
3. What does Tether’s investment in Lightning payments signal?
It highlights a strategic push to expand USDT’s real-world payment use and strengthen Bitcoin-aligned financial infrastructure.
4. Will the SEC lawsuit impact Bitcoin mining businesses?
Experts believe compliant hosted mining firms are unlikely to be affected, as the case targets specific operational and disclosure failures.
5. Why is Ethereum leading in on-chain adoption?
Ethereum supports a broad ecosystem of DeFi, NFTs, Layer-2 networks, and stablecoins, resulting in significantly more active wallets than Bitcoin.
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