Crypto Market Update: Why Are Prices Falling? – December 29, 2025

The cryptocurrency market has seen a slight decline today, with the total market capitalization dipping by 0.5% over the past 24 hours to approximately $3.04 trillion, just above the critical $3 trillion mark. Despite this minor downturn, trading activity remains robust, with a total 24-hour volume of $116.18 billion.

Key Takeaways

Total crypto market capitalization fell by 0.5% to $3.04 trillion over the past day.
Bitcoin (BTC) is down 0.5% today, trading at $87,337, and has decreased by 3.1% this week.
Large investors continue to accumulate Ethereum (ETH), as indicated by on-chain data.
Bitwise CIO Matt Hougan predicts a decade of steady gains for Bitcoin with lower volatility.
BTC is holding key support levels between $85,000–$86,000.
The Crypto Fear and Greed Index remains at 30, categorizing market sentiment as fearful.
U.S. Bitcoin spot ETFs experienced a net outflow of $275.88 million.
U.S. Ethereum spot ETFs recorded outflows totaling $38.7 million.
ALT5 Sigma is under scrutiny following issues with its newly appointed auditor's license.

Crypto Market Update

Crypto Winners & Losers

Currently, most top cryptocurrency assets are experiencing losses, reflecting a cautious market sentiment.

Bitcoin (BTC) has decreased by 0.5% today, now at $87,337, while its performance over the past week shows a significant decline of 3.1%. BTC's market capitalization is $1.74 trillion, with over $44.7 billion traded in the last 24 hours.

Ethereum (ETH) has also slipped by 0.2% to $2,931, extending its weekly loss to nearly 4%. It recorded nearly $25 billion in daily trading volume, making it the second-largest cryptocurrency with a market cap of $354 billion.

Other cryptocurrencies in the top ten, like BNB (BNB) and XRP (XRP), have similarly declined, with BNB down 0.6% to $850 and XRP slightly lower by 0.1% to $1.86.

Solana (SOL) dropped 0.5% to $123.81, following a broader weekly decline of 2.6%. Dogecoin (DOGE) had the largest weekly loss in this group at 7.3%, despite a minimal decrease of 0.4% today.

Conversely, some altcoins have shown strong performance. TokenFi surged 66.4%, and ZEROBASE climbed by 68.2% in the last 24 hours. The White Whale also performed well, increasing by 57.1%. Notable mentions among trending tokens include Neiro, Bitcoin, and OVERTAKE, with OVERTAKE rising over 31% today.

On the accumulation front, Trend Research withdrew 20,850 ETH worth $63.28 million from Binance over the weekend and borrowed an additional $40 million in USDT via the lending platform Aave, indicating aggressive ethnic accumulation as ETH hovers near $3,000.

The institutional entity Easy Come Easy Go has accumulated 601,074 ETH valued at $1.83 billion across five addresses, having borrowed approximately $958 million in stablecoins to support purchases at an average price of around $3,265 per ETH.

Predicting Bitcoin's Future: Steady Gains Ahead

According to Bitwise CIO Matt Hougan, Bitcoin is set to trend higher over the next decade without the volatile spikes seen in previous bull markets. In comments made on CNBC, Hougan suggested that Bitcoin is entering a phase characterized by "strong but unspectacular" returns, with reduced volatility and gradual price appreciation.

Despite recent price weakness, Hougan remains optimistic about 2026, citing stable institutional demand as a factor contributing to market stabilization. Bitcoin has pulled back roughly 30% from its October peak near $125,100, currently trading around $87,800, sparking discussions about whether this cycle has reached its peak. Some analysts note parallels with previous cycles, hinting at potential further declines.

Hougan acknowledges selling pressure from retail investors but emphasizes that long-term institutional interest has mitigated declines compared to previous cycles when drops could exceed 60%.

On the other hand, some analysts, like Strategy CEO Phong Le, argue that Bitcoin's core fundamentals have remained strong throughout 2025, while Hougan believes that 2026 could see positive trends for the asset.

Key Levels & Upcoming Events to Monitor

As of now, Bitcoin is trading near $87,220, exhibiting a drop of around 0.7% today. Recent price actions indicate an ongoing downtrend that started after the October peak around $125,000, with sellers maintaining dominance through November and December.

Over the last few weeks, Bitcoin has consistently formed lower highs, although support around the $85,000–$86,000 range has held firm on multiple occasions. A significant break below this support could lead BTC to a deeper pullback towards $81,000, with a psychological risk of falling below the $80,000 mark. On the upside, bulls must reclaim the $92,000 level to signal short-term recovery, facing stronger resistance around $98,000 and $103,000.

Ethereum is following a comparable trend, currently trading around $2,926, down about 0.8% in the past day. The asset has struggled to maintain momentum above the $3,000 mark, which has become a near-term resistance level. A drop below $2,800 could bring attention to $2,650, previously a support zone during past selloffs.

On the positive side, a sustained rise above $3,100 would mark the first indication of renewed strength for Ethereum, potentially leading to moves toward $3,400 and then $3,650.

Market sentiment in the cryptocurrency space remains cautious, with the Crypto Fear and Greed Index measuring at 30, indicating fear among traders. This static reading suggests that traders are hesitant to commit to buying amid ongoing price volatility.

Recent reports highlight that U.S. Bitcoin spot ETFs ended the last session with significant net outflows of $275.88 million on December 26. Cumulative net inflows remain strong at $56.62 billion, with total net assets across U.S. BTC spot ETFs around $113.53 billion, representing roughly 6.5% of Bitcoin’s market capitalization.

Outflows were especially concentrated in the largest ETF products, with BlackRock’s IBIT leading the way with $192.61 million in net outflows. Fidelity’s FBTC experienced $74.38 million in outflows, while Grayscale’s GBTC had more modest outflows of $8.89 million.

Additionally, U.S. Ethereum spot ETFs faced net outflows of $38.7 million on December 26. This decline was driven mainly by two funds, with BlackRock’s ETHA experiencing $22.12 million in outflows and Grayscale’s ETHE facing $16.58 million in withdrawals. The remaining Ethereum ETFs reported flat flows with no inflows recorded.

Cumulative net inflows for Ethereum ETFs total $12.34 billion, while total net assets stand at $17.73 billion, representing just over 5% of Ethereum's market capitalization.

Finally, Nasdaq-listed ALT5 Sigma is under increased scrutiny following reports that its newly appointed auditor is barred from conducting audits due to an outdated license. The Financial Times reported that ALT5 Sigma sought to change its previous auditor after failing to submit its third-quarter financial results by the deadline.

As the market continues to fluctuate, investors should keep an eye on these developments to navigate the complex landscape of cryptocurrency effectively.