PA Daily | Citigroup predicts Bitcoin may reach $143,000 in the next year; a user suffers $50 million loss due to address poisoning attack

Today’s Headlines:

1.CNBC: Federal Reserve Board Member Waller had a “strong interview for Fed Chair with President Trump”

2. US stock market’s three major indices all closed higher, with tech stocks and blockchain concept stocks rising across the board

3.Citigroup predicts Bitcoin could rise to $143,000 in the next year

4.CryptoQuant: Bear market may have begun, with medium-term support estimated at $70,000

5.Galaxy Research: Bitcoin is expected to reach $250,000 by the end of 2027

6.Market news: Tom Lee’s internal research report states BTC and ETH will undergo deep corrections, contrary to his claim of new highs at the end of January

7.A user encountered a “poisoning” attack with similar start and end characters in addresses, losing nearly 50 million USDT

Macroeconomics

US stock market’s three major indices all closed higher, with tech stocks and blockchain concept stocks rising across the board

The three major US stock indices all closed higher: Dow +0.38%, down 0.67% for the week; Nasdaq +1.31%, up 0.48% for the week; S&P 500 +0.88%, up 0.1% for the week. Large tech stocks rose broadly, with Oracle up over 6%, Nvidia nearly 4%, Broadcom over 3%, Google over 1%. Blockchain concept stocks also rose: Twenty One Capital (XXI) +7.62%; Galaxy Digital (GLXY) +6.62%; Circle (CRCL) +6.35%; Strategy (MSTR) +4.16%.

CNBC: Fed Board Member Waller had a “strong interview for Fed Chair with President Trump”

According to CNBC, Fed Board Member Waller had a “strong interview for Fed Chair with President Trump.”

Additionally, BlackRock CIO Rick Rieder will be interviewed at the Mar-a-Lago estate in the last week of this year for the Fed Chair position.

TikTok releases draft regulations for financial content, strictly prohibiting illegal information related to virtual currencies

TikTok recently released the “TikTok Community Financial Industry Convention (Trial)”, explicitly banning the packaging of content related to virtual currencies, digital assets, and other illegal financial content related to exchange, trading intermediaries, and pricing services. The purpose of this convention is to regulate the financial content ecosystem and combat speculation on virtual assets, illegal stock recommendations, money laundering, and illegal fundraising.

Federal Reserve seeks public opinion on establishing limited “payment accounts” for some financial institutions

The Federal Reserve announced on Friday that it is seeking public comments on establishing limited “payment accounts” for certain financial institutions. These accounts would allow these institutions to use Fed payment services for clearing and settlement but would not enjoy the broader rights currently available to banks. Fed Board Member Waller stated that such accounts could “support innovation” while protecting the security of the payment system. If established, these accounts will differ from the Fed’s main accounts, will not pay interest, and will not provide Fed credit services. These accounts will also be subject to balance limits. Waller first proposed this idea in October last year, seeking a balance between allowing fintech companies and other institutions broader access to Fed payment services without granting full main account privileges to less regulated entities.

Senator Lumis will not seek re-election after her term ends in January 2027

Republican Senator Cynthia Lumis’s term will end in January 2027, but she has stated she will not seek re-election. She posted on X platform on Friday that the upheavals last fall left her physically and mentally exhausted.

Lumis is Chair of the Senate Banking Committee’s Digital Assets Subcommittee and has actively participated in regulating the cryptocurrency industry in Congress over the past few years. She has worked closely with New York Democratic Senator Kirsten Gillibrand to promote comprehensive legislation aimed at establishing a digital asset regulatory framework, including clarifying regulatory responsibilities among agencies like the SEC and CFTC.

After multiple meetings, the Senate Banking Committee has been actively pushing this legislation, with participants including Democrats, Republicans, crypto industry representatives, and traditional financial stakeholders. The current goal is to revise and pass the bill through committee early next year, but it still needs to be coordinated with ongoing work in the Senate Agriculture Committee. Afterwards, the bill will need to be voted on by the full Senate and reconciled with the version passed by the House in summer.

Three former FTX executives, including Caroline Ellison, accept SEC penalties and sign settlement agreements, barred from serving as executives or directors for 8-10 years

The US SEC issued a lawsuit notice stating that three former executives of FTX and its affiliates have accepted SEC’s final penalties, which are still subject to court approval. Former CEO Sam Bankman-Fried remains in federal prison for fraud, while former Alameda Research CEO Caroline Ellison and others have agreed to settlement, pending court approval. Other signatories include former CTO Zixiao Wang and former co-engineer Nishad Singh.

The SEC states that these three will be barred from serving as executives or directors elsewhere, with Ellison’s ban lasting 10 years, and the others 8 years. They are also subject to a five-year “behavioral injunction.”

Swift to introduce blockchain ledger, collaborating with over 30 banks to build a global interoperable digital financial infrastructure

According to Swift, it is working with more than 30 banks worldwide to develop a blockchain-based ledger system designed to expand existing financial infrastructure and support scalable tokenized asset circulation. Swift states that this ledger will record and verify transaction sequences via smart contracts, operating in parallel with existing systems to address fragmentation in digital finance and improve cross-border payments and asset transfers globally.

Viewpoints

Citigroup predicts Bitcoin could reach $143,000 in the next year

Against the recent decline in Bitcoin prices, Citigroup forecasts that Bitcoin could rise to $143,000 in 12 months, about 62% higher than the current $88,000.

Analysts Alex Saunders, Dirk Willer, and Vinh Vo stated in a joint report: “We expect increased adoption of digital assets driven by potential US legislation in Q2, with Bitcoin’s active user value possibly around $80,000 to $90,000 in the new year.” They pointed out that $70,000 is a key support level, and with ETF demand rebounding and market optimism, prices could surge significantly. However, there is a downside risk: in a global recession, Bitcoin could fall to $78,500; on the optimistic side, increased investor demand could push Bitcoin to $189,000.

CryptoQuant: Bear market may have begun, with medium-term support estimated at $70,000

On-chain analytics firm CryptoQuant posted that Bitcoin demand growth has significantly slowed, indicating a bear market may be imminent. Since 2023, Bitcoin has experienced three major spot demand waves—driven by US spot ETF launches, US presidential election results, and Bitcoin treasury company bubbles—but since early October 2025, demand growth has fallen below trend levels. This suggests most new demand in this cycle has been realized, and key support pillars are disappearing.

Institutional and large holder demand is contracting rather than expanding: US spot Bitcoin ETF holdings turned net sellers in Q4 2025, decreasing by 24,000 BTC, contrasting sharply with strong accumulation in Q4 2024. Similarly, addresses holding 100–1,000 BTC (representing ETFs and treasury companies) are growing below trend levels, echoing demand deterioration trends seen before the 2022 bear market at the end of 2021.

Derivatives market confirms weakening risk appetite: Perpetual futures funding rates (365-day moving average) have fallen to their lowest since December 2023. Historically, this decline reflects reduced willingness to maintain long positions, a pattern typical in bear markets rather than bull markets.

Price structure deteriorates with demand weakness: Bitcoin has broken below its 365-day moving average, a key long-term technical support level that historically marks the boundary between bull and bear markets.

Demand cycles, rather than halving events, drive Bitcoin’s four-year cycles: The current decline further indicates that Bitcoin’s cyclical behavior is mainly driven by demand expansion and contraction, not halving events or past price performance. When demand peaks and begins to decline, a bear market often follows regardless of supply-side dynamics.

Downside reference points suggest a relatively small bear market: Historical data shows Bitcoin’s bear market bottom is close to its realized price, currently around $56,000, implying a potential retracement of up to 55% from recent highs—its smallest decline ever. The medium-term support is expected around $70,000.

JPMorgan: Stablecoin supply may reach $500–600 billion by 2028, well below optimistic expectations

JPMorgan states that by 2028, stablecoin supply could reach $500–600 billion, far below the optimistic $2–4 trillion forecast. They note that stablecoin demand is mainly a crypto market issue, not a payments issue.

JPMorgan points out that since the beginning of the year, the stablecoin market size has grown by about $100 billion, reaching approximately $308 billion, led by Tether’s USDT and Circle’s USDC. Demand remains primarily driven by crypto trading, derivatives, and DeFi collateral needs, with around $20 billion of stablecoins added to derivatives exchanges.

Analysts say that current payment drivers are modest, but as more providers test stablecoin-based cross-border transfer channels, payment activity could grow. However, broader payment use does not necessarily require larger stablecoin circulation, as increased token velocity from deeper integration could suffice. Banks and payment networks are also tokenizing deposits and exploring blockchain initiatives to protect their position in institutional fund flows, with CBDC initiatives potentially offering regulated alternatives competing with private stablecoins.

Galaxy Research: Bitcoin could reach $250,000 by the end of 2027

Galaxy Research released 26 predictions for 2026, including: Bitcoin will reach $250,000 by the end of 2027; market volatility in 2026 is too high to predict precisely, but Bitcoin still has a chance to hit a new all-time high in 2026. The total market cap of internet capital on Solana could soar to $2 billion (currently about $750 million). At least one operational general-purpose Layer-1 blockchain will integrate a revenue-generating application, directly returning value to its native token.

Arthur Hayes: Bitcoin may peak in March next year and then correct; Fed’s RMP is essentially a form of quantitative easing

BitMEX co-founder Arthur Hayes wrote that the Fed’s new Reserve Management Purchase (RMP) program is just a new way to mask money printing. Once the market realizes that the Fed’s RMP is actually a form of quantitative easing, Bitcoin will quickly return to $124,000 and rapidly approach $200,000. The peak is expected in March next year, when expectations of RMP-driven asset price inflation will reach a high, followed by a correction and a local bottom well above $124,000. Hayes also expressed strong optimism for Altcoin Ethena (ENA).

Coinbase Annual Outlook: Institutional participation enters DAT 2.0 mode, tokenomics shifts toward yield linkage

Coinbase Institutional released the “2026 Crypto Market Outlook” report, analyzing factors shaping the crypto economy over the next year. From detailed forecasts for Bitcoin, Ethereum, and SOL, to updates on regulation, market structure, and tokenization. The report states that the US economy remains resilient, and the crypto environment in early 2026 resembles 1996 more than 1999, though uncertainty remains high. A clearer global framework will change how institutions handle strategy, risk, and compliance by 2026. Regarding institutional participation, a “DAT 2.0” model is expected to emerge, focusing on professional trading, storage, and procurement in sovereign blockchain spaces, viewing them as key digital economy commodities. Tokenomics will enter phase 2.0, with protocols increasingly emphasizing value capture, shifting from purely narrative test phases to sustainable, yield-linked models.

Market news: Tom Lee’s internal fund report states BTC and ETH will undergo deep corrections, contrary to his claim of new highs at the end of January

According to market sources, Tom Lee predicts Bitcoin and Ethereum will hit new highs in January, but his Fundstrat fund’s latest 2026 crypto strategy advice to internal clients states that cryptocurrencies will experience significant corrections in the first half of the year: BTC target $60,000–$65,000; ETH $1,800–$2,000; SOL $50–$75.

Earlier, Tom Lee forecasted ETH might short-term fall back to $2,500, but could rise to $7,000–$9,000 in January.

Project Updates

Ethereum developers rename Glamsterdam’s subsequent upgrade to “Hegota”

At the final annual ACDE meeting, Ethereum core developers officially named the next hard fork after the 2026 Glamsterdam upgrade as “Hegota,” combining the traditional naming of Bogota (execution layer) and Heze (consensus layer). The specific EIPs are yet to be determined, expected to be selected by February 2026. Hegota may include long-term plans like Verkle trees, aiming to promote key goals such as stateless clients. Ethereum will continue its semi-annual upgrade rhythm in 2026.

The Museum of Modern Art in New York acquires 8 CryptoPunks, including Punk 4018

CryptoPunks announced that 8 CryptoPunks (Punk 4018, Punk 2786, Punk 5616, Punk 5160, Punk 3407, Punk 7178, Punk 74, and Punk 7899) have been officially added to the permanent collection of the Museum of Modern Art (MoMA) in New York.

Eigen Foundation proposes adjusting EIGEN token incentives to reward active users more

EigenLayer’s re-staking protocol’s foundation proposed a governance change to introduce new incentive mechanisms for its EIGEN tokens, adjusting the reward strategy to prioritize efficient network activity and fee generation. A newly established incentive committee will manage token issuance, prioritizing rewarding participants who ensure AVS security and expand the EigenCloud ecosystem. The proposal includes a fee model that redistributes AVS rewards and EigenCloud service revenues to EIGEN holders, which could introduce deflationary pressure as the ecosystem develops.

Coinbase lists Brevis (BREV) on its token listing roadmap and launches zkPass (ZKP) spot trading

According to official announcements, Coinbase has included Brevis (BREV) in its token listing roadmap and launched zkPass (ZKP) spot trading.

Brevis is a zero-knowledge proof-based cross-chain data proof platform designed to support dApps in accessing, computing, and utilizing on-chain data across multiple blockchains without trusting third parties.

Coinbase CEO: Stock trading officially launches today, more details coming soon

Coinbase CEO Brian Armstrong tweeted that the global stock market’s size is about 25 times that of the crypto market. Its system is outdated and far less efficient than crypto. This marks an important milestone for enabling 24/7, global tokenized stock trading. Stock trading officially launches today, more details to be announced.

Binance: Hold over 226 Alpha points to claim 670 TTD airdrop

According to official announcements, Binance Alpha TradeTide (TTD) trading will start at 16:00 (UTC+8) on December 20. After trading begins, users holding at least 226 Binance Alpha points can claim an airdrop of 670 TTD tokens. First come, first served. If the event is ongoing, the score threshold will automatically decrease by 5 points every five minutes. Claiming the airdrop will consume 15 Binance Alpha points. Users must confirm claim within 24 hours on the Alpha activity page, or it will be considered forfeited.

Important Data

3 new wallets received 2,509 BTC from FalconX within 12 hours, worth about $221 million

According to Onchain Lens monitoring, in the past 12 hours, 3 newly created wallets received 2,509 BTC valued at approximately $221 million from FalconX.

A user encountered a “poisoning” attack with similar start and end characters in addresses, losing nearly 50 million USDT

SlowMist founder Yu Xian tweeted that a user was poisoned by an address with similar start and end characters, losing nearly 50 million USDT. User @web3_antivirus stated that the user first sent a small test transaction to the correct address. Minutes later, $50 million was sent to a malicious address copied from transaction records (with the first 3 and last 4 characters identical).

• Player address: 0xcB80784ef74C98A89b6Ab8D96ebE890859600819
• Poisoning address: 0xBaFF2F13638C04B10F8119760B2D2aE86b08f8b5
• Expected address: 0xbaf4b1aF7E3B560d937DA0458514552B6495F8b5

Bitcoin spot ETF saw net outflows of $158 million yesterday; only Fidelity’s ETF FBTC had net inflows

According to SoSoValue data, yesterday (December 19, US Eastern Time), Bitcoin spot ETFs had a total net outflow of $158 million.

The ETF with the largest single-day inflow was Fidelity’s ETF FBTC, with $15.33 million, bringing its total net inflow to $12.208 billion.

The ETF with the largest single-day outflow was BlackRock’s ETF IBIT, with $174 million, with total net inflows of $62.491 billion.

As of before press time, the total net asset value of Bitcoin spot ETFs was $114.873 billion, with an ETF net asset ratio (market cap as a percentage of total Bitcoin market cap) of 6.53%, and total net inflows of $57.407 billion.

Ethereum spot ETF saw a net outflow of $75.89 million yesterday, continuing 7 days of net outflows

According to SoSoValue data, yesterday (December 19, US Eastern Time), Ethereum spot ETFs had a total net outflow of $75.89 million.

The ETF with the largest single-day outflow was BlackRock’s ETF ETHA, with $75.89 million, with total net inflows of $12.672 billion.

As of before press time, the total net asset value of Ethereum spot ETFs was $18.209 billion, with an ETF net asset ratio of 5.04%, and total net inflows of $12.444 billion.