Fedi to Go Open Source on Bitcoin Genesis Anniversary

Bitcoin is marking another milestone as Fedi, a major player in the crypto space, announced it will open source its Bitcoin-related initiatives on the anniversary of Bitcoin's genesis. This move is seen as a response to the growing interest in open collaboration and transparency within the crypto industry. The decision aims to encourage wider adoption and innovation in the Bitcoin ecosystem.

The Bitcoin market has experienced significant fluctuations in 2025, with prices facing downward pressure. The market now faces a potential downturn that echoes the 2022 correction. Despite this, long-term bullish sentiment remains intact, driven by institutional adoption and regulatory clarity. Cantor noted that these conditions resemble the early stages of a crypto winter.

Recent developments in the crypto space, including the Bybit hack in February 2025, have raised security concerns for centralized platforms. The hack, attributed to state-sponsored actors, exposed vulnerabilities in custody systems and led to tighter regulatory scrutiny and policy changes. The Financial Action Task Force (FATF) also issued warnings on illicit finance risks in crosschain activity and stablecoins.

Why Did This Happen?

Fedi's open source initiative aligns with broader trends in the crypto industry, where transparency and community-driven development have become increasingly valued. The move could also be a strategic response to recent regulatory shifts, as governments and organizations push for clearer guidelines and compliance standards. The U.S. is expected to pass the CLARITY Act in 2026, which outlines a comprehensive regulatory framework for crypto assets.

In South Korea, the top exchange Korbit is preparing for potential Bitcoin ETF launches, but regulatory delays continue to hinder progress. The country's financial authorities have issued mixed signals, with some officials supporting ETF development while others remain cautious about the implications for monetary policy and capital controls according to reports.

How Did Markets React?

Bitcoin's price has stalled just below $90,000, with reduced volatility observed as liquidity thins during the holiday period. The market is now awaiting stronger flows in January to determine the tone for the first quarter. ETF outflows have moderated slightly but remain a key factor to watch. Analysts suggest that the current price range reflects positioning reset before the new year.

Decentralized finance (DeFi) has also shown resilience, with total value locked (TVL) reaching $161 billion in Q3 2025. Tokenized real-world assets (RWAs), particularly US Treasurys, have driven much of this growth. Cantor expects RWAs to surpass $50 billion in 2026 as adoption continues to expand.

What Are Analysts Watching Next?

Analysts are closely monitoring the regulatory landscape, particularly in the U.S., where the Digital Asset Market Clarity Act is expected to pass. This legislation could create a clearer distinction between securities and commodities, potentially accelerating institutional participation and market convergence between centralized and decentralized platforms.

Additionally, the U.S. Federal Reserve has lifted restrictions on banks engaging in crypto activities, allowing them to custody customer assets and provide other services in 2026. This change is seen as a positive development for crypto adoption and integration into traditional financial systems.

Crypto wallet usage is also evolving, with Bitget Wallet reporting a shift from trading to spending. Wallets are increasingly being used as everyday finance apps, reflecting broader adoption and integration into daily transactions. This trend is expected to continue as onchain financial activity becomes more seamless and accessible according to data.

Fedi's decision to open source its Bitcoin initiatives could signal a broader shift toward open collaboration in the crypto industry. As Bitcoin enters a potential correction phase, transparency and community-driven development may become even more critical in maintaining trust and driving innovation according to industry analysis.