Crypto Sentiment Weakens Despite ETF Inflows
The cryptocurrency markets are experiencing notable volatility, as Bitcoin has fallen below $88,000 after a brief recovery to the $90,000 level. Ethereum followed suit, dipping below the $3,000 mark. The global market capitalisation stands at approximately $3.06 trillion, with the Fear & Greed Index indicating a level of 29, which points to a dominant sentiment of market fear. Experts assert that the macroeconomic sentiment for the crypto markets is closely linked to the Federal Reserve’s policy trajectory. Disinflation is advancing, though at a more gradual rate, which is tempering expectations for a swift or substantial reduction in rates.
Meanwhile, gold and silver have reached unprecedented levels, propelled by speculation regarding rate cuts and persistent geopolitical uncertainties, underscoring a heightened demand for hedging strategies. At present, Bitcoin holds a value of $87,494, reflecting a decline of 1.39 percent in the last 24 hours, accompanied by a trading volume of $36.76 billion. The token demonstrated volatility, fluctuating between $87,580 and $90,501 throughout the session, as reported. Ethereum is presently experiencing significant selling pressure, trading at $2,966, which marks a 2 percent decrease, accompanied by a 24-hour trading volume of $19.06 billion. During the session, ETH experienced fluctuations, ranging from $2,965 to $3,073.
Riya Sehgal emphasizes that the market sentiment continues to rely on data. “A softer US GDP print might rekindle liquidity optimism as we approach early 2026.” Until then, the cryptocurrency market is expected to mirror equities, entering a consolidation phase following ETF-driven inflows and a mid-quarter correction. “Momentum recovery will need decisive closes above $89,500 for Bitcoin and $3,080 for Ether,” Sehgal stated. She further noted that the 200-period moving average near $91,000 serves as key resistance, while $85,500 marks structural support for Bitcoin. Ether is presently experiencing a comparable compression between the $2,950 support level and the $3,080 resistance level, reflecting Bitcoin’s trajectory. Ryan Lee anticipates that Bitcoin and Ethereum will sustain their upward momentum in the near term, aligning with seasonal trends and broader equity rebounds that have historically bolstered digital assets following periods of consolidation. “For the holiday period, we anticipate Bitcoin trading in the $86,000 to $93,000 range and Ethereum between $2,800 and $3,200, supported by returning institutional inflows and potential regulatory clarity,” said Lee. In examining the wider market catalysts, Lee remarked that ETF approvals or unforeseen macroeconomic developments could either enhance gains or trigger short-term volatility.
“Geopolitical tensions or sudden liquidity shifts remain risks, but overall, this setup favors growth in crypto markets, further reinforcing the integration between traditional finance and digital assets as we approach the close of 2025,” stated Lee. In other developments, Tom Lee’s Bitmine has successfully acquired 98,852 ETH over the past week, bringing its total holdings to 4,066,062 ETH. Meanwhile, Trump Media has increased its Bitcoin holdings by 451 BTC, resulting in a total of 11,542 BTC, as reported. In a recent update, Strategy has increased its USD reserve to $2.19 billion, with no new Bitcoin acquisitions reported last week. Aster is poised to launch a Stage 5 buyback program on December 23, allocating up to 80 percent of its daily platform fees for both automatic and discretionary ASTER buybacks. In a significant development, pro-crypto advocate Michael Selig has officially taken on the position of chairman of the Commodity Futures Trading Commission.
