Crypto Markets Tread Water on Christmas Day
Bitcoin spent Christmas in a narrow lane. Hovering near $87,500. As traders nursed thin liquidity. Additionally, thinner conviction. However, what looked like a calm tape sat on top. Of a louder signal. Persistent outflows from US spot Bitcoin ETFs.
Meanwhile, money that normally chases holiday risk drifted towards old standbys. With gold and silver pulling some of the safe haven oxygen. Away from crypto.
Bitcoin Stalls Below $88K as ETFs Bleed
Bitcoin stayed capped under $88,000. After five straight sessions of ETF withdrawals. Totaling more than $825M. Over the past 24 hours, BTC traded between $86,420 and $88,050. It last changed hands around $87,490. Up about 0.75% at 09:30 UTC.
Yet the range said more. Than the percentage move. Why? Because each bounce met sellers. Before the market could reprice higher.
Flow-Driven Mechanics
Although bulls still describe the backdrop as something. Mid-cycle consolidation. The mechanics feel simpler this week. Flows matter. And flows have been negative. Therefore, even modest spot buying struggles. To move the market. When issuers must meet redemptions.
Meanwhile, the holiday lull reduced something specific. The sort of discretionary risk-taking. That can overwhelm flow-driven pressure. At least for a few days.
Elsewhere, some institutional money chose an indirect route. Florida’s pension exposure increased. Via MicroStrategy. A familiar proxy. That behaves like leveraged Bitcoin. When sentiment turns. However, that kind of positioning does not fix something. Near-term ETF outflows. Additionally, it can amplify volatility. If the tape breaks lower.
Scaramucci’s “Basket” Looks Soggy
A simple $1,000 split across Bitcoin matters. Additionally, Solana. Furthermore, Ethereum. Moreover, Avalanche at the start of 2025. Would now sit below break-even. That result jars with something. The common Christmas story. That “everything went up.”
Yet the mix captures the year’s reality. A handful of sharp rallies. Followed by long spells of digestion. Additionally, several bouts of rotation. That punished anyone holding the wrong corner.
Anthony Scaramucci has stuck to a multi-year view. That Bitcoin behaves like digital gold. Meanwhile, Solana and Avalanche serve as infrastructure bets. However, the market has treated “infrastructure” differently. As a trade. Not as a marriage. Therefore, timing and liquidity have mattered. Almost as much as the eventual thesis.
Individual Asset Performance
Solana drew attention. After a September run towards $235. Additionally, a market value cited near $138BN. Helped by speed. Furthermore, low fees. Meanwhile, bullish projections for 2026 cluster around $400 to $450. Although that assumes sustained DeFi activity. Additionally, NFT activity.
Ethereum has looked heavy at points. With weaker revenue prints. Alongside price softness. However, the Fusaka upgrade narrative still aims at something. Cheaper Layer 2 transactions. Which could pull activity back on-chain.
Avalanche stood out. By rising in September. Even as parts of the Layer 1 complex wrestled. With sluggish revenue trends.
Stablecoins and New Money Keep the Pipes Running
While price action stalled, plumbing improved. Gold-backed stablecoins almost tripled in 2025. And one issuer widened the gap. On the field. Meanwhile, blacklist activity surged. With Tether freezing far more value. Than Circle. A reminder that “permissionless” still has something. A long tail of permissions.
Product launches also kept coming. Exodus partnered with MoonPay and M0. On a fully reserved digital dollar. Pitched for 2026. Meanwhile, asset managers pushed towards new wrappers. With Bitwise filing for a spot SUI ETF.
Deal flow stayed hot too. With crypto transaction volume cited at $8.6BN. Helped by a regulatory mood. That has been less hostile. Than in prior years.
XRP Gets a Holiday Spotlight
XRP traded around a technical line. That chart watchers framed as $1.80 Fibonacci support. Large holder activity kept the token. On traders’ screens. And some platforms pushed yield-style marketing. Into year-end.
However, traders should treat outsized return promises with caution. Why? Because leverage and opacity tend to surface. When liquidity thins.
Still, XRP remains a favorite. During “quiet” sessions. Precisely because it can move on positioning. Rather than fresh fundamentals. Therefore, any break of that support level could trigger something. Fast stops. While a rebound could invite another burst. Of momentum buying.
Global Crackdowns and Green Lights
Regulation delivered both stick and carrot. India’s Enforcement Directorate raided 21 locations. Tied to a long-running crypto Ponzi case. Meanwhile, Ghana moved towards legalized crypto trading. Under fresh rules. Russia, under sanctions pressure, signaled tighter oversight.
Coinbase also secured approval. For a stake. In India’s CoinDCX. A reminder that firms still want exposure. To large retail markets. Even with compliance friction.
FTX Fallout Drifts On
Caroline Ellison, a former FTX executive, is set for release. On January 21, 2026. After cooperation. The date landed like another odd timestamp. In a saga that never quite exits the tape.
However, markets mostly shrugged. Why? Because the collapse has shifted. From shock to slow administrative unwind.
By the Numbers
BTC range: $86,420 to $88,050 (past 24 hours)
BTC level: About $87,490 (09:30 UTC)
Spot BTC ETF flows: Five straight days of outflows
Total outflows: More than $825M over the streak
Crypto deal volume: Cited at $8.6BN
Key Takeaways
Watch ETF flow prints first. Why? Because they have set the tone. For BTC’s ceiling under $88K.
Expect sharper moves on smaller size this week. Since holiday liquidity can exaggerate breaks.
Keep an eye on Solana and XRP as rotation magnets. Particularly if Bitcoin stays range-bound.
Treat yield claims with skepticism. Because thin markets reward marketing. Until they don’t.
Stay alert to regulatory headlines. Since “green lights” and raids can hit sentiment quickly.
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