Why Is Crypto Rising Today? – December 31, 2025

Why Is Crypto Rising Today? – December 31, 2025

The cryptocurrency market has observed a modest increase today, with the total market capitalization ticking up by 0.5% over the last 24 hours, reaching approximately $3.08 trillion. Although the overall value has improved, trading activity is still relatively low, as the 24-hour trading volume sits at around $92.2 billion, indicating a cautious approach from investors across major digital assets.

TLDR:

The market capitalization of cryptocurrencies is up 0.5% within the last 24 hours, maintaining above $3.08 trillion.
In the top 10 cryptocurrencies, performance is varied: Bitcoin (BTC) is up 0.7% to approximately $88,575, while Ethereum (ETH) has decreased by 0.3% to around $2,973.
Bitcoin continues to trade within the range of $88K following a $19 billion liquidation of leverage positions in October.
Trader caution is evident as holiday trading liquidity is low and US rate expectations remain stable.
US spot Bitcoin ETFs have seen $355 million in inflows, halting a series of outflows.
Spot Ether ETFs have added $67.8 million in inflows.
The Crypto Fear and Greed Index is at 32, indicating ongoing investor caution.
Family offices have increased their investments in crypto during 2025, but current volatility and poor performance raise questions about the outlook for 2026.

Performance Overview of Cryptocurrencies

Mixed Results Among Top Coins

As of now, the performance of the top ten cryptocurrencies by market capitalization shows a mix of results, although price fluctuations remain relatively steady.

Bitcoin (BTC) is trading near $88,575, reflecting an increase of approximately 0.7% over the last day, bringing its weekly gains to a little over 2%.

BTC Movement

Ethereum (ETH) has remained mostly stable, dropping 0.3% to around $2,973 but still showing a nearly 2% rise over the week.

BNB (BNB) is exhibiting stronger performance among large-cap cryptos, increasing by 1% in the last 24 hours to $864, while Solana (SOL) has seen a rise of 1.1%, trading near $126.1.

Both XRP (XRP) and TRON (TRX) have shown minimal movement, remaining flat with negligible changes. On the other hand, Dogecoin (DOGE) has weakened among the leading cryptocurrencies, dropping by 1.2% to $0.123, extending its weekly decline to over 3%.

Several smaller tokens have experienced notable gains, with Omni Network (Old) leading with an impressive increase of over 170%, trading around $3.39. Bitlight follows closely with a rise of more than 100%, now priced at about $0.92, while Diverge Loop has climbed nearly 72%, reaching around $0.064.

On the downside, losses are limited but concentrated, with Lighter declining over 16% and Zcash (ZEC) slipping approximately 2.2%, now trading near $524.6.

Furthermore, Cypherpunk Technologies has expanded its position in Zcash, acquiring an additional 56,418.09 ZEC for about $29 million, at an average price of $514.02 per token. This adds approximately 1.76% to Zcash’s circulating supply, sparking a debate on the role of privacy-focused cryptocurrencies in corporate treasuries compared to Bitcoin.

Bitcoin’s Stagnation as Traders Adjust Positions

Year-End Market Dynamics

As the year wraps up, Bitcoin has remained around $88,000, with traders making last-minute adjustments in a market still recovering from October's leverage unwind, which eradicated more than $19 billion in leveraged trades in a single day. This event has made spot buyers cautious, while derivatives traders are more inclined to mitigate risks.

Currently, Bitcoin ETFs from the spot market recorded about $6 billion in net outflows during the fourth quarter, as per Bloomberg, keeping Bitcoin below $90,000 through late December. Analysts suggest that the previous push toward a six-figure price lacked the usual signals of peak-market enthusiasm, revealing a more delicate market structure.

Low trading liquidity during the holiday season has contributed to a subdued market activity, particularly in Asia, where many exchanges have closed early or remained shut.

Looking ahead, crypto traders are keeping an eye on whether new inflows will emerge in early January, or if Bitcoin will continue to trade within the mid-$80,000 range as it enters 2026.

Key Levels to Monitor Going Forward

Technical Analysis and Market Sentiment

Presently, Bitcoin is trading close to $88,660, maintaining a narrow range after several weeks of volatile price changes. Recent trading observations show Bitcoin rebounding from a low of about $85,000 at the end of November, with current sessions fluctuating between about $87,000 and $89,500.

Even though there has been short-term stabilization, Bitcoin remains significantly below its October peak of over $120,000, which reflects cautious trading as year-end liquidity declines.

Technically, the support zone for Bitcoin is now observed between $88,000 and $88,500. If Bitcoin can maintain its position above this range, it may test $90,000, followed by resistance near $92,000.

Conversely, dropping below $88,000 could refocus attention on the $85,000 level, with a deeper decline potentially opening the door to the $82,000 to $83,000 region, which previously saw demand during the November sell-off.

Meanwhile, Ethereum is trading around $2,974, showing initial signs of stabilization after a significant decline over several months. Ethereum's performance has seen a steady downtrend from its September high above $4,500, followed by a sharp downturn in November and unpredictable recovery attempts through December. Ethereum recently rebounded from lows near $2,800, but upward momentum appears limited.

ETH Movement

For Ethereum, the critical pivot range lies between $2,950 and $3,000. If it can remain above this level, a movement towards $3,200 could be possible, with further resistance identified near $3,400 if momentum picks up.

On the downside, failing to maintain above $2,950 may result in Ethereum falling back toward $2,800, with additional support levels located around $2,700. Until trading volume and bullish action return, Ethereum appears to be range-bound, reflecting the broader market hesitance.

Overall, crypto market sentiment remains low, with the Crypto Fear and Greed Index positioned firmly in the fear zone, currently recorded at 32 according to CoinMarketCap. This continues to indicate caution among investors despite recovery in major assets.

Over recent weeks, sentiment has consistently weakened, dropping from 27 last week and 20 the previous month, indicating persistent doubt following sharp corrections and thin liquidity as the year comes to a close. While fear levels are not in “extreme fear” territory, they suggest a market lacking confidence and decisiveness.

Fear and Greed Index

On Tuesday, US spot Bitcoin ETFs broke their streak of outflows, recording $355.02 million in net inflows, according to SoSoValue’s data. This rebound has pushed cumulative net inflows to $56.96 billion, even as December has been largely characterized by selling pressure.

The leading inflows were driven by BlackRock's IBIT at $143.75 million, with Fidelity’s FBTC adding $78.59 million, and Ark & 21Shares’ ARKB contributing $109.56 million. Additional inflows were seen in Bitwise’s BITB ($13.87 million), with minor contributions from VanEck’s HODL ($4.98 million) and Grayscale’s BTC fund ($4.28 million). No significant outflows were reported among major ETFs on that day.

ETF Inflows

Additionally, spot Ether ETFs also reported a positive turn, breaking a four-day outflow streak with $67.84 million in net inflows, boosting cumulative net inflows to $12.40 billion, even as demand for Ethereum ETFs has struggled to maintain consistency during December.

Grayscale's ETHE led the Ethereum inflows with $50.19 million, followed by Grayscale's ETH fund with $13.95 million, and Fidelity's FETH which added $3.70 million. Other products, including BlackRock's ETHA, recorded steady flows on that day. The total trading volume across Ether ETFs reached $1.10 billion, while the total net assets stood at $17.99 billion, accounting for roughly 5% of Ethereum's market capitalization.

Ether ETF Activity

In conclusion, family offices worldwide have increased their cryptocurrency investments in 2025, with more investors entering the space for the first time. However, the sharp price fluctuations and disappointing recent performance raise questions about the sustainability of this momentum leading into 2026.