Crypto faces ETF outflows and weak sentiment, while AI wealth surges, safety debates intensify, and big firms accelerate real-world adoption.
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Markets may be winding down for the holidays, but the headlines have not. Crypto products are seeing significant outflows and thinning liquidity, while AI continues to reshape wealth, business models and public debate. Together, they paint a picture of two fast-moving sectors entering 2026 with both momentum and contention.
In Web3, spot Bitcoin ETFs recorded sizeable year-end redemptions alongside a drop in futures open interest, prompting questions about leverage and sentiment. At the same time, debates are intensifying around regulation, bank competition and the role of prediction markets. Even as retail search interest fades, on-chain developments such as Uniswap’s historic token burn continue to move the industry forward.
In AI, soaring valuations have dramatically increased the wealth of leading tech founders, with major firms embedding generative tools more deeply into their operations. Alongside this rapid adoption sit more troubling trends, including extremist misuse of AI and growing concern over safety, governance and preparedness. Governments, companies and civil society are all jostling to set the rules for the next stage of the AI era.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
Spot Bitcoin ETFs Record US$782 Million Outflows
Spot Bitcoin ETFs saw six consecutive days of redemptions totalling US$782 million during Christmas week, with BlackRock’s IBIT recording the largest single-day outflow at US$193 million. Analysts attributed the withdrawals to year-end positioning and thinner holiday liquidity.
Bitcoin Futures Open Interest Falls to Eight-Month Low
Open interest in Bitcoin futures declined to US$42 billion, the lowest in eight months, following a rejection at the US$89,000 level. Despite the pullback, healthy basis rates and options delta skew indicate limited downside risk.
Vitalik Buterin Defends Event Prediction Markets
Vitalik Buterin argued that event prediction markets are healthier than equities or social media platform, rejecting claims that such markets are vulnerable to manipulation while noting that similar risks exist in traditional financial markets.
Coinbase CEO Criticise Banks Over GENIUS Opposition
Coinbase CEO Brian Armstrong stated that reopening the GENIUS Act would be a red line, accusing banks of lobbying to limit competition from stablecoins, and claiming that banks are seeking to preserve traditional deposit models.
Global Interest in Crypto Searches Falls to Yearly Low
Search interest in crypto has dropped to a one-year low, falling to a score of 26. The decline reflects reduced retail participation following the October flash crash and the collapse of several memecoin valuations.
JPMorgan Freezes Stablecoin Firms Accounts
JPMorgan reportedly froze accounts belonging to BlindPay and Kontigo, citing exposure to sanctioned jurisdictions such as Venezuela. A spokesperson clarified that the move was not a stance against stablecoins.
Memecoins Struggle Amidst Thin Holiday Liquidity
Memecoins Dogecoin and Shiba Inu weakened over the holiday period as low liquidity magnified technical selling pressure. DOGE is holding a support zone to avoid further declines, while SHIB’s structure lost a key support level.
Uniswap Conducts Historic Token Burn
Uniswap has removed 100 million UNI tokens from circulation following the approval of the UNIfication governance proposal. The burn reduced total supply while activating new fees on V2 and V3 pools on Ethereum.
Artificial Intelligence (AI)
AI Boom Adds Over US$500 Billion in 2025
An AI-fuelled stock market rally added more than half a trillion dollars to the wealth of America’s technology billionaires in 2025. Elon Musk’s net worth rose by nearly 50% to around US$645 billion while Nvidia’s Jensen Huang saw his fortune reach approximately US$159 billion.
Disney Integrates OpenAI’s Sora into its Operations
Disney is embedding generative AI into its operating model through a major partnership with OpenAI. The agreement allows the use of Sora to generate short-form video content featuring specific Disney characters under strict safety and usage controls.
Extremists Use AI Voice Cloning to Amplify Propaganda
Extremist groups are using AI voice-cloning tools to recreate speeches by prominent figures in order to spread their ideology. Neo-Nazi groups have produced English versions of Hitler’s speeches, while the Islamic State is using text-to-speech.
Expedition 33 Loses Awards Over GenAI Use
The Indie Game Awards rescinded prizes awarded to Clair Obscur: Expedition 33 after it emerged that the developer used generative AI tools. Organisers maintain a firm policy against AI-assisted submissions.
20% of YouTube Videos Deemed AI Slop
A recent study found that over 20% of videos recommended to new YouTube users consist of low-quality, AI-generated content. These channels are estimated to generate roughly US$117 million per year by farming engagement through repetitive material.
OpenAI Recruits Head of Preparedness
OpenAI is hiring a Head of Preparedness to oversee risks linked to cybersecurity, mental health impacts, and potential runaway AI systems. The role involves building a safety pipeline to monitor frontier AI capabilities that could cause severe harm.
Tesco Signs AI Partnership with Mistral
UK retailer Tesco has entered into a three-year partnership with European AI startup Mistral to develop tools for internal operations and customer services. The collaboration aims to save staff time, enhance demand forecasting, and optimise delivery routes.
Anti-Misinformation Campaigner Claims Alleged Retaliation
Imran Ahmed, Chief Executive of the Centre for Countering Digital Hate (CCDH), has accused major technology firms of greed after being targeted for deportation. He claims he is being punished for demanding accountability from AI and social media platforms.
That’s all for this week’s Pasar Pulse. Want more insights? Stay tuned to our site or subscribe via email!
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