The Canadian Dollar (CAD) took a significant dive on Tuesday, inching closer to the critical 1.4200 level against the US Dollar. Investors are increasingly bearish on the Loonie as the Bank of Canada (BoC) is widely expected to implement a substantial 50 basis point rate cut this week.
A Weakening Canadian Economy
Canada’s economic landscape is currently fraught with challenges. The recent surge in the Canadian Unemployment Rate to multi-year highs has provided the BoC Governor Tiff Macklem with ample justification for further monetary easing. The central bank’s primary goal is to stimulate the housing market, a crucial sector that significantly contributes to the nation’s economic growth.
Interest Rate Differential Widens
The widening interest rate differential between the US and Canada is a key driver behind the CAD’s weakness. As the Fed is poised to maintain a more hawkish monetary policy stance, the appeal of the US Dollar has increased, further pressuring the Loonie.
Market Outlook
The market consensus leans towards a 50 basis point rate cut by the BoC on Wednesday, which could potentially push the main reference rate down to 3.25%. Meanwhile, investors are eagerly awaiting the release of the US Consumer Price Index (CPI) data on the same day. A softer-than-expected inflation reading could reinforce expectations for a third consecutive rate cut by the Federal Reserve on December 18.
The USD/CAD pair has surged to a 56-month high, reflecting the significant structural weakness in the Canadian Dollar. The pair is currently trading within a long-term sideways range, but the recent upward momentum suggests a potential breakout to the upside.
As the BoC prepares to deliver a significant rate cut and the US economy continues to show resilience, the Canadian Dollar is likely to remain under pressure in the near term. Traders should closely monitor the release of key economic indicators and central bank decisions for further direction.
DWF Labs announced today that it invested $25 million into Trump Family-backed World Liberty Financial and is planning to open an office in New York City. It hopes to use this office to drive new relationships with regulators, financial institutions, and more.
Although this partnership would potentially create more liquidity opportunities for the US crypto market, previous allegations against DWF have raised some concerns about political misconduct.
“The US is the world’s largest single market for digital asset innovation. Our physical presence reflects our confidence in America’s role as the next growth region for institutional crypto adoption. Moreover, the USD1 stablecoin and forthcoming global DeFi solutions align with our broader mission to improve financial services,” claimed Managing Partner Andrei Grachev.
DWF’s statement includes a few key details about its new relationship with WLFI. It essentially boils down to two key points: the firm has already purchased $25 million in WLFI tokens, and it plans to open a physical office in New York City.
On a positive note, this partnership could be significant for the overall US crypto market. DWF Labs has a portfolio of over 700 crypto projects.
So, physically setting up a hub in New York will give me regulatory freedom and the opportunity to invest directly in the local crypto market. This would potentially open up more liquidity for upcoming Web3 projects and startups in the US
DWF Labs just dropped $25M on World Liberty Financial!@worldlibertyfi is a DeFi platform with ties to Trump and this marks DWF’s first major move into the U.S., with a new NYC office on the way.
Although DWF Labs is a popular market maker, it has been at the center of major controversies. Last year, it was accused of wash trading and market manipulation, and Binance allegedly shut down its internal investigation due to financial incentives.
Also, one of its partners was dismissed back in October over allegations of drugging a job applicant. So, the firm’s credibility and reputation have been shaky in recent times.
This is to say that the crypto community has reasons to worry about a deal between DWF and World Liberty Financial. A report from late March determined that most WLFI revenues go directly to Trump’s family.
WLFI owners are unable to actually trade their tokens, and the stated governance use of the assets seems unclear. In other words, there isn’t a clear reason why anyone would invest.
An XRP ETF dubbed XRPH11 began trading in Brazil today, making it the first such product in the world. The ETF, issued by Hashdex, is being traded on Brazil’s B3 stock exchange.
Brazil also made history by approving the first Solana ETF last year. XRPH11’s trading volume isn’t public knowledge yet, but it could pave the way for such approvals in the US market.
Today, Hashdex’s efforts are bearing fruit, as B3 announced earlier.
“XRPH11 is part of Hashdex’s line of mono-asset funds, such as the ETFs BITH11, ETHE11 and SOLH11. The focus of these ETFs is sophisticated investors, such as institutional investors who want to build crypto portfolios on B3,” Samir Kerbage, CIO of Hashdex, said in a statement to local media.
XRPH11 will invest at least 95% of its assets in XRP, although it will consist of direct and indirect holdings. So far, it doesn’t seem like any trading data from its first day is publicly available, but Hashdex’s site confirms that XRPH11 is live already.
If Brazil’s new ETF lands with a thud for XRP as it did for Solana, this might spell further bearishness.
Either way, XRPH11’s trading performance will contain several useful information. The US ETF market could soon face a flood of altcoin products, and these may not stand a chance of capturing Bitcoin’s market dominance.
As of now, Polymarket shows a 74% chance of an XRP ETF approval in the US by the end of this year.
Welcome to the US Morning Crypto News Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee to see what experts have to say about Bitcoin’s (BTC) price outlook. Key investment strategies are driving the next directional bias for the pioneer crypto.
Is a $90,000 Breakout Imminent for Bitcoin?
Crypto markets continue to reel from Trump-infused volatility, which weighs heavily on investor sentiment. Traders and investors are bracing for macroeconomic headwinds that continue to temper modest gains.
However, despite the concerns, analysts are still optimistic, citing key investment or trading strategies. BeInCrypto contacted Blockhead Research Network (BRN) analyst Valentin Fournier, who alluded to the Wyckoff price cycle.
“Our base case remains an accumulation phase, with occasional dips likely before Bitcoin can make a clean break above the $89,000–$90,000 resistance,” Fournier told BeInCrypto.
The Wyckoff Price Cycle, developed by Richard Wyckoff, is a technical analysis framework to identify market trends and trading opportunities. It consists of four phases:
Accumulation: Where smart money buys at low prices, often marked by a “spring” (a false breakdown).
Markup: A bullish phase with rising prices.
Distribution: Where smart money sells at highs, also featuring a “spring” (false breakout).
Markdown: A bearish phase with declining prices.
Fournier added that because Bitcoin dominance continues to rise, this suggests altcoins could continue underperforming in the short term.
He also noted that, in contrast to Bitcoin’s strength, trade tensions have affected traditional markets more.
“This is highlighted by Nvidia’s decline following new export restrictions on chips to China,” he said.
What Does Options Data Say?
If the accumulation phase thesis is true, it aligns with a recent analysis by Deribit’s Tony Stewart, highlighting trader sentiment favoring the upside.
The bullish cohort is buying $90,000 to $100,000 Calls, suggesting bets on a price rise for Bitcoin. However, others are bearish, buying $80,000 Puts and selling $100,000+ Calls, indicating they expect a decline or hedging.
Likewise, funding strategies reveal bullish traders are rolling up positions from $84,000 to $90,000 Calls and selling lower Puts ($75,000) to finance their bets. This indicates confidence in a near-term rally.
Traders analyze these repeating phases’ price action, volume, and market structure. Based on that, they can spot reversals and time entries or exits while understanding institutional behavior.
