BeInCrypto Global

Major market participants have continued to increase their exposure to Ethereum (ETH), investing millions of dollars in the second-largest cryptocurrency. 

This comes despite recent price weakness that has pushed the asset down nearly 3% just this week alone. The divergence suggests that while price action remains under pressure, long-term conviction among institutional and whale investors appears intact.

Price Weakness Fails to Deter Major Buyers  

BeInCrypto Markets data showed that Ethereum has continued to struggle amid a broader market downturn. At the time of writing, ETH was trading at $2,929.23, down 1.06% over the past 24 hours.

Ethereum (ETH) Price Performance. Source: BeInCrypto Markets

While the decline has unsettled some investors, others appear to be treating this as a buying opportunity. Blockchain analytics firm, Lookonchain, highlighted that BitMine Immersion Technologies purchased 67,886 ETH, valued at approximately $201 million.

This followed an earlier acquisition just one day prior, when the firm acquired 29,462 ETH worth $88.1 million from BitGo and Kraken. The consecutive purchases align with the firm’s broader accumulation strategy.

Last week alone, BitMine acquired a total of 98,852 ETH, pushing its overall Ethereum holdings past the 4 million mark. With Ethereum’s trading price just slightly above BitMine’s average entry of $2,991, the company appears unfazed by recent price swings.

Another notable buyer was Trend Research. The secondary investment entity led by Jack Yi, founder of LD Capital, acquired 46,379 ETH today. The purchase brought the institution’s total holdings to roughly 580,000 ETH. 

“They started bottom-fishing ETH in early November at around $3,400. Up to now, they have accumulated a total of 580,000 ETH (about $1.72 billion), with an estimated average cost of around $3,208. This means they are currently sitting on an unrealized loss of approximately $141 million,” EmberCN reported.

In a public statement, Yi revealed that the firm is preparing another $1 billion for ETH purchases. He also advised against shorting Ethereum.

Large on-chain whales have also remained active. The wallet known as the “66k ETH Borrow” whale, who had previously accumulated 528,272 ETH worth about $1.57 billion, added another 40,975 ETH, valued at roughly $121 million. 

“Since Nov 4, this whale has bought a total of 569,247 ETH ($1.69 billion), of which $881.5 million of the funds used to buy ETH were borrowed from Aave,” Lookonchain noted.

Meanwhile, Fasanara Capital used a leveraged strategy. The firm acquired 6,569 ETH worth $19.72 million over two days before depositing it into the Morpho protocol. It borrowed $13 million USDC to buy more Ethereum.

Ethereum Whales Split as Buying and Selling Intensify

However, not all major players are accumulating, with some opting to reduce positions. BeInCrypto reported that Arthur Hayes sent 682 ETH, valued at approximately $2 million, into Binance today.

Lookonchain stated that the executive has sold 1,871 ETH worth $5.53 million in the past week, while buying Ethena (ENA), Pendle (PENDLE), and ETHFI.

“We are rotating out of ETH and into high-quality DeFi names, which we believe can outperform as fiat liquidity improves,” Hayes wrote on X.

Adding to the selling pressure, Onchain Lens reported that the Bitcoin OG whale had deposited 100,000 ETH, worth approximately $292.12 million, into Binance. Such large exchange deposits are often interpreted as potential preparation for selling, though they do not always result in immediate liquidation.

Previously, ETHZilla also disclosed that it offloaded 24,291 ETH for approximately $74.5 million to repay senior secured convertible debt. Despite these opposing flows, BeInCrypto noted that selling activity among long-term Ethereum holders has collapsed by more than 95%.

HBAR price has continued to disappoint. The token is down roughly 26% over the past month and nearly 67% year-on-year, reflecting persistent weakness across both price and participation. What makes the current moment more important is where HBAR is trading now. The price could now eye levels last tested in October 2024, putting a multi-month low back on the table.

The chart breakdown is clear, and buying pressure has steadily collapsed. Yet one unusual metric suggests the downside may be approaching exhaustion. Whether that outlier can matter now is the key question.

Bear Flag Breakdown Signals Trend Continuation Risk

On the 4-hour chart, HBAR has completed a textbook bear flag breakdown. A bear flag forms when the price drops sharply, consolidates in a tight upward or sideways channel, and then breaks lower again. It is a continuation pattern, not a reversal signal.

The HBAR price briefly broke below the flag structure near the $0.109 level, and the move has held without a meaningful bounce.

That confirmation matters. Using the height of the initial flagpole, the projected downside from the breakdown points to a move of roughly 28% from the flag’s upper range. From current levels, that places downside targets in the $0.068 zone. However, if the 4-hour candle manages to close above the lower trendline of the bear flag, the breakdown risks could weaken for now.

Hedera Risks Breakdown: TradingView

That level closely aligns with low zones last traded in October-November 2024, which is why this move carries multi-month low risk rather than just a short-term dip narrative.

The second confirmation comes from exchange flow data. Buying pressure has been fading for weeks.

On December 5, net outflows suggested dip buying, with roughly 4.09 million HBAR leaving exchanges. That behavior has steadily weakened. As of December 24, net outflows have shrunk to just 314,830 HBAR.

That is a drop of more than 92% in net buying pressure.

Hedera Buyers Are Moving Away: Coinglass

In simple terms, even as prices fell, buyers did not step in with conviction. Instead, inflows periodically flipped positive, showing that selling pressure returned quickly after minor dips, hinting at panic exits. When a bear flag breaks and buying pressure collapses at the same time, the probability of continuation rises sharply.

This explains why the breakdown has not attracted aggressive dip buyers. The market is not treating this zone as value yet.

One Sentiment Outlier Suggests Downside May Be Crowded

The only counterweight to the bearish setup comes from sentiment.

HBAR’s positive social sentiment reading has collapsed from a peak near 76.97 in late October to roughly 1.62 now. That is a drop of almost 98%. It reflects extreme disinterest rather than panic enthusiasm.

Historically, similar local sentiment troughs have produced short-term relief rallies. On November 9, when sentiment made a local low, HBAR rose from roughly $0.17 to $0.19 in a single session, a move of about 12%. On December 1, another sentiment dip preceded a move from $0.13 to $0.14, a gain of roughly 14% within two days.

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Positive Sentiment Collapses: Santiment

This is the outlier offering hope.

However, context matters. Those rebounds occurred when structural selling pressure was lighter, and buying flows were still present. Today, sentiment is collapsing alongside a confirmed bear flag breakdown and vanishing demand. That makes the signal less reliable.

In weak markets, extreme negative sentiment can stay extreme longer than expected.

What Happens Next To The HBAR Price

The HBAR price is at a critical juncture. The dominant signals remain bearish: a bear flag breakdown, collapsing buying pressure, and acceptance below key support levels. As long as the price remains below $0.109, downside risk toward $0.079 and potentially $0.068 (from the 4-hour chart) stays active.

HBAR Price Analysis: TradingView

The only thing working against that path is sentiment exhaustion. If negative sentiment once again triggers opportunistic dip buying, HBAR could see a short-lived relief bounce. But without a clear return of buying pressure, that bounce would likely fade, unless the price reclaims $0.155, the start of the downward impulse.

The crypto market’s downward trend continued today, with total market capitalization falling 3.17% over the past month amid persistent sell-offs. However, one sector has bucked the trend: tokenized real-world assets (RWAs).

The distributed asset value has continued to climb, reaching a new all-time high despite unfavorable market conditions.

Bitcoin Sell-Off Continues as RWA Sector Largely Unaffected 

According to data from RWA.xyz, the sector now holds $19.06 billion in distributed asset value. This represents a 4.59% appreciation over the past month. 

Real World Assets Value Growth. Source: RWA.xyz

At the same time, the represented asset value totals $414.6 billion, primarily driven by the Canton Network’s management of $395.2 billion in institutional assets.

The number of asset holders has also increased, rising 7.23% to 583,821. Stablecoins continue to dominate the sector, with a total value of $299.17 billion and 212.54 million holders. This represents a 4.12% increase over the same period.

Kevin Rusher, founder of RAAC, a RWA lending and borrowing ecosystem, said that market attention within the crypto sector remains largely focused on Bitcoin’s price, which has continued to decline. He noted that recent developments suggest selling pressure may persist.

“As usual, most attention within the crypto sector is being paid to the price of bitcoin, which continues to slide its way out of 2025 as if glued to a sled….Yesterday’s news that Strategy has paused BTC buying and put over $700 million into cash indicates, this selling is likely to continue. Inflows into bitcoin also declined markedly this year compared to last year, at $27.2 billion compared to $41.6 billion in 2024,” Rusher stated.

Tokenized Gold Emerges as a Key Growth Driver 

Despite this broader weakness, Rusher emphasized that selling pressure has not spilled over into the tokenized RWA sector. He pointed out that the segment remains largely overlooked by much of the crypto market, even as it delivers some of the strongest returns this year. 

The growth has been fueled in part by a global surge in demand for gold. The precious metal continues to hit new all-time highs. Tokenized versions of the metal have seen particularly strong momentum in response.

“Indeed, tokenized gold is up 227% from $1 billion to over $3.27 billion year to date, while its sector – RWA commodities – is one of the year’s key growth spots. Beginning 2025 with nothing more than four gold products, this sector is ending it with 15 products spread across not just gold, but now also oil, wheat, platinum, soy, and more,” the executive highlighted.

Additionally, Shehram Khattak, General Counsel at Trust Wallet, noted that tokenized gold could emerge as a strong competitor to Bitcoin. 

“We’re in a situation where you’re starting to think about, like, real-world assets, for example, tokenizing assets, once you get tokenized gold, and if it’s tokenized in an appropriate way, that’s a big caveat. Because Bitcoin is heavily used as a store of value. And if that’s the case, then tokenized gold becomes quite a heavy competitor to Bitcoin,” he remarked.

Meanwhile, according to Rusher, the expansion in the sector is being driven not just by significant institutional demand but also by increasing retail participation. He noted that retail investors are turning to stable assets on-chain, rather than exiting the market entirely during periods of heightened volatility.

“The volatile year that we’ve seen has really shaped the sector and made it a robust and fertile growth space. And this is an incredibly positive indicator for the growth of crypto as a whole as RWA’s will provide a firm footing that means liquidity will stay in crypto even when time gets tough. RWA’s are absolutely the future of crypto and deserve much more attention to,” he added.

Tokenization Market Could Reach $100 Billion by 2026

Looking ahead, Jesse Knutson, Head of Operations at Bitfinex Securities, has forecasted that the tokenization market as a whole will grow to at least $100 billion by the end of 2026.

He expects tokenized fixed-income products to remain the dominant segment in the near term, while tokenized equities gradually increase their share of total tokenized assets. 

Knutson added that the continued tokenization of equities is likely to attract a larger number of retail participants, helping to broaden and deepen the investor base for tokenized assets.

“Tokenization can open up regulated access to investment opportunities like micro financing bonds, litigation finance products, or Bitcoin hashrate contracts, assets that are not available on traditional markets. We expect this momentum to continue into 2026, with more alternative assets, innovative Bitcoin-mining backed fixed income products, tokenised ETFs,” he mentioned to BeInCrypto.

Previously, Plume CEO Chris Yin also projected a 10–20x expansion in both value and users in 2026, even under conservative assumptions. Thus, as the RWA space continues to expand, its performance in 2026 will likely be a key trend to watch.

While leading Layer-1 (L1) blockchains, such as Ethereum, Solana, and BNB Chain, continue to dominate media coverage, Bitcoin Cash (BCH) has emerged as a “silent star.”

BCH is likely to be one of the few Layer-1 altcoins to end 2025 with strong positive performance. Several key drivers support this scenario.

How Bitcoin Cash (BCH) Outperformed Other Layer-1s in 2025

Data shows that BCH has risen nearly 32% year-to-date, making it the best-performing Layer-1 altcoin. It has outpaced rivals such as Tron, Ethereum, and Solana.

Notably, BCH has remained largely outside the ETF and strategic reserve (DATs) narrative. While altcoins like ETH, SOL, and XRP benefit from expectations of institutional accumulation, BCH has advanced without relying on those catalysts.

This performance highlights BCH’s intrinsic strength as a Bitcoin fork that has survived multiple market cycles.

Layer-1 Price Performance. Source: Dexu

At its current price above $570, BCH could close 2025 higher than its opening price of $430 at the start of the year.

However, many analysts expect more. They believe BCH will break above the current $600 resistance and set a new yearly high.

“Once price decisively breaks above the $610–$650 resistance zone, BCH is likely to move significantly higher, similar to ZEC’s run in September,” investor Karamata predicted.

If BCH breaks above $650, it could mark a two-year high. A move above $720 could establish its highest level since 2022. Several on-chain drivers support this outlook.

Positive Signals Supporting a Potential BCH Breakout

One notable bullish signal is the surge in Bitcoin Cash’s average transaction value in December 2025.

Historical data from BitInfoCharts shows the average transaction value spiking above $1.34 million at several peaks, while BCH traded near $600.

BCH Average Transaction Value. Source: BitInfoCharts

This represents the highest average transaction value in BCH’s history. It reflects a rise in large transactions, potentially from large investors or whales, signaling real capital inflows into the network.

Additional spot trading data further reinforces this trend. The Bitcoin Cash Spot Average Order Size chart from CryptoQuant reveals that whale activity has dominated the order book over the past several years.

Bitcoin Cash Spot Average Order Size. Source: CryptoQuant

Large whale orders have reappeared over the past two months, as BCH traded around the $600 resistance zone.

Beyond trading metrics, BCH remains one of the most widely accepted altcoins for payments. According to Cryptwerk, BCH ranks fourth with 2,468 merchants accepting it, trailing only BTC, ETH, and LTC.

These factors could contribute to a successful breakout and push BCH toward new records in 2026.

However, challenges remain. Liquidity constraints and extremely fearful market sentiment continue to act as barriers, making a rapid BCH breakout more difficult.

XRP entered the final quarter under heavy pressure after a sharp sell-off erased much of its earlier gains. The Q4 decline has placed the altcoin on track to close 2025 in negative territory. 

Despite this setback, the hope lingers that buying activity from investors could attempt to reverse momentum before the year ends.

XRP Holders Sold At A Loss

On-chain realized profit and loss data show Q4 selling was unusually aggressive. XRP holders exited positions at a loss, signaling deteriorating confidence. Historically, investors in large-cap tokens tend to hold through drawdowns, expecting eventual recovery rather than crystallizing losses.

This cycle appears different. Selling at a loss indicates heightened uncertainty around XRP’s near-term outlook. The behavior suggests risk aversion has outweighed long-term conviction, contributing to sustained downside pressure during the quarter.

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XRP Realized Profit/Loss. Source: Glassnode The Past Comes To An End

XRP’s broader performance context highlights the challenge. The current market cycle threatens to end a two-year streak of positive annual returns. In 2023, XRP rallied 81%, followed by a 238% surge in 2024, driven by improving regulatory clarity and speculative demand.

In contrast, 2025 has been marked by weaker momentum. If current levels persist, XRP may close the year down approximately 11%. This reversal highlights how shifting macro conditions and investor sentiment can disrupt even strong historical trends.

XRP Annual Returns. Source: TradingView Does XRP Have A Chance?

Despite the drawdown, activity on the XRP Ledger has decreased in late December. Network data shows the number of active transacting addresses reached a monthly low of 34,005. Declining participation suggests renewed engagement from both retail and institutional users is weak.

Higher transaction activity often correlates with improving demand. Low usage can support price decline by affecting liquidity and losing reinforcing utility-driven interest. This late-year decline may reflect strategic positioning ahead of 2026 rather than short-term speculation.

XRP Active Addresses. Source: Santiment XRP Price Might Change Its Direction

XRP trades near $1.85 at the time of writing, down 11% since the start of 2025. To neutralize annual losses, the token must recover to $2.10. Achieving this level would allow XRP to close the year flat, preserving its long-term performance record.

However, for now, downside risk remains if market conditions deteriorate. Failure to hold $1.85 could trigger a slide toward $1.70. Such a move would invalidate the bullish thesis and confirm a negative annual close, extending uncertainty into early 2026.

XRP Price Analysis. Source: TradingView

A recovery path depends on defending the $1.85 support, with the help of rising participation. Holding this level could enable a rebound toward $1.94. Breaching that resistance is critical for flipping $2.00 into support, clearing the final hurdle toward the $2.10 target.

A new analysis is reigniting one of crypto’s most critical debates: whether investors should hold or sell tokens after receiving an airdrop.

Data shared by a trader shows that most airdropped tokens lose significant value after launch, raising questions about whether selling is the more rational strategy.

Most Crypto Tokens Underperform After Launch, Analysis Finds

In a recent X (formerly Twitter) post, cryptocurrency trader Didi tracked personal airdrop receipts from the last year. The data revealed that nearly all tokens suffered significant losses after their launch. For example, M3M3 dropped 99.64%, Elixir fell 99.50%, and USUAL declined 97.67%.

Major projects lost significant value as well. Magic Eden declined 96.6%, Jupiter fell 75.9% from its TGE price, and Monad dropped 39.13% since its debut. The only token above its initial price was Avantis, with a 30.4% gain.

“Out of the 30 airdrops I’ve received since December 2024, only one is trading slightly above its TGE price today. Yet selling an airdrop at launch somehow makes you a ‘traitor.’ Let’s be honest about the game we’re playing. We’re all here to make money. Anyone telling you otherwise is lying to themselves,” the post read.

The analyst added that historical data shows holding altcoins long term is a low-probability strategy, with the likelihood of losses far outweighing the chances of sustained gains.

“Understand the environment you’re operating in and prioritize capital preservation above everything else. Profits are only real once they’re realized,” Didi said.

Industry-wide analysis appears to reinforce these conclusions. Memento Research analyzed 118 token generation events in 2025 and found that 84.7% of launched tokens are currently trading below their TGE valuation.

Token Performance Post TGE. Source: Memento Research

Furthermore, 65% of those tokens have lost around 50% of their value. At the same time, over half are down 70% or more.

The report pointed out that projects that debuted with high fully diluted valuations (FDV) performed particularly poorly. Of the 28 launches that started with an FDV of $1 billion or more, none are currently green today.

“When you split the year by starting FDV quartiles, the pattern is clear: the cheapest and lowest FDV launches were the only bucket with a meaningful survival rate (40% green) and a relatively mild median drawdown (~-26%), while everything above mid-pack basically got repriced into the floor with median losses of ~-70% to -83% and almost no greens,” the report read.

An analyst noted that many crypto projects aim for billion-dollar valuations regardless of product maturity or utility. Many tokens open trading at levels far removed from their fundamental or fair value, leading to rapid repricing once market forces take over.

“Whoever isn’t selling most of this drops at tge is retarded or doesn’t understand how valuation works,” he stated.

Airdrop Fatigue Grows as Mechanics Worsen and Trust Erodes

Beyond persistent price pressure, investor interest in airdrops has been fading in 2025 for structural reasons. Market participants increasingly argue that the airdrop model itself has become overly complex, exclusionary, and vulnerable to abuse.

Crypto commentator Maran illustrated this shift by contrasting past and present airdrop mechanics. In previous cycles, airdrops often required minimal participation, such as connecting a wallet, and distributed relatively large allocations.

In 2025, many projects apply stricter eligibility criteria, including longer engagement periods, technical requirements, registration windows, or vesting schedules.

“4 figures was pretty easy back then. Now 4 figures are the top,” the user added.

Another analyst claimed that airdrops are “completely broken” in 2025. Zamza Salim emphasized that Sybil attacks compromised several high-profile airdrops in 2025 despite anti-farming measures.

“Airdrop meta in 2025 is cooked. Don’t waste month grinding for scrap while farmers eat 20%,” Salim remarked.

Taken together, recent data highlights a recurring pattern of post-launch underperformance among airdropped tokens, while also pointing to broader structural challenges within the airdrop model. Although some tokens do manage to retain or grow value over time, the combination of high initial valuations, market repricing, and evolving distribution mechanics has made outcomes quite uncertain.

Arthur Hayes, co-founder of BitMEX, continued to withdraw ETH from his wallet and transfer it to exchanges in December. These actions have led investors to believe he is selling ETH. The move may be part of a portfolio rebalancing plan he previously shared.

This activity comes as his portfolio shows notable changes. It now holds more stablecoins and significantly less ETH.

Arthur Hayes May Have Sold More Than 1,800 ETH in the Past Week

A recent report from Lookonchain, an account that tracks notable on-chain activity, revealed that Hayes sold an additional 682 ETH on Binance. The transaction was valued at approximately $2 million. He redirected the capital into DeFi tokens.

Earlier, BeInCrypto reported that Hayes transferred 508.6 ETH, valued at around $1.5 million, to Galaxy Digital.

In total, Hayes sold approximately 1,871 ETH over the past week. The estimated value of these transactions reached $5.53 million. He used the proceeds to purchase DeFi tokens, including ENA, PENDLE, and ETHFI.

Price Performance of Tokens Purchased by Hayes. Source: TradingView

Data shows that these tokens have declined by 80–90% so far this year. Hayes appears to be taking advantage of low prices. He expects these tokens to deliver future returns. Previously, Hayes publicly shared his strategy on his personal X account.

“We are rotating out of ETH and into high-quality DeFi names, which we believe can outperform as fiat liquidity improves,” he said.

However, a closer examination of his portfolio structure using Arkham data reveals a significant shift.

First, the amount of ETH held in his wallet has steadily declined from 16,000 ETH in 2022. Since November, his ETH holdings have fallen from 6,500 ETH to 3,160 ETH. This indicates sales of more than 3,440 ETH during that period.

Arthur Hayes’s Investment Portfolio. Source: Arkham

Meanwhile, out of a total portfolio valued at $74 million, nearly $48 million is held in USDC. Stablecoins now account for more than 60% of the portfolio’s total value.

Arthur Hayes’s Investment Portfolio. Source: Arkham

Arkham data shows that Hayes increased his USDC holdings from $1 million to nearly $48 million since mid-November. This period also coincided with market sentiment remaining in fear to extreme fear territory.

Typically, rising stablecoin holdings signal either readiness to buy dips or a cautious stance.

Previously, Arthur Hayes predicted that Ethereum could reach $20,000. He stated that holding 50 ETH could make someone a millionaire by the next US presidential election.

Another day, another all-time high for precious metals. Gold, silver, and platinum all reached new record levels today.

Market experts view this surge as a warning signal, pointing to declining trust in financial systems and persistent inflation risks. Meanwhile, the crypto community is assessing whether this momentum in precious metals could eventually translate into capital rotation toward Bitcoin in 2026.

Gold, Silver, and Platinum Mark New All-Time Highs

According to the latest market data, gold surged past $4,500 for the first time today, setting an ATH at $4,526. At the same time, silver reached a peak of $72.7.

“Silver is up over a buck now, trading above $72.30. It looks like $80 is in play before year-end,” Economist Peter Schiff wrote.

Furthermore, platinum’s peak price was recorded at over $2,370. Palladium moved past the $2,000 mark, a level last seen in November 2022.

The surge spread beyond precious metals. Copper soared to $12,000 per ton for the first time, on track to record its largest annual gain since 2009. Nic Puckrin, investment analyst and co-founder of The Coin Bureau, told BeInCrypto that the stellar performance of precious metals has been driven by

“A combination of rate cuts, geopolitical tensions – which are resurfacing again this week with Venezuela – and, crucially, the dollar debasement trade.”

What the Precious Metals Rally Could Be Warning

While record prices have sparked optimism about continued upside, some analysts believe they may be concealing a far more troubling macro reality. Schiff argued that gold, silver, commodities, bonds, and foreign exchange markets are collectively signaling that the US is heading toward the highest inflation in its 250-year history.

His warning comes despite recent data showing US GDP growth of 4.3% in Q3, well above market expectations. However, the economist cautioned against taking official figures at face value.

“The CPI is rigged to mask price increases and hide inflation from the public,” he added.

Analyst Andrew Lokenauth warned that the rapid increase in silver prices is “rarely a good sign.” According to him, it suggests declining confidence in political leadership and fiat currencies.

“This happened right before the Fall of Rome, during the French Revolution, and when the Spanish Empire collapsed. It doesn’t only predict chaos, it often causes it. It triggers a massive transfer of wealth: the poor get left behind with worthless paper money and the rich protect themselves with gold and silver,” Lokenauth stated.

Meanwhile, the DXY has weakened significantly throughout 2025. As the year draws to a close, the index has once again fallen below 98.

“Dollar index fell to the lowest close since Oct 3rd,” Neil Sethi posted.

US Dollar Index. Source: TradingView

Otavio Costa revealed that the US dollar is approaching a critical turning point. He noted that the DXY began the year at one of its most overvalued levels on record before declining sharply to a key support zone that has held for roughly 15 years.

“That support has now been tested multiple times, particularly in recent months, and in my view we are approaching a significant breakdown — one that could carry profound implications for global markets,” he said.

The analyst mentioned that this comes as foreign central banks move toward tighter policy, while the Federal Reserve faces growing pressure to ease to manage rising US debt servicing costs. According to Costa, large trade and fiscal deficits are historically resolved through financial repression, a process that typically unfolds alongside a weaker dollar rather than a strong one.

From Gold to Crypto? Analysts Watch for Capital Rotation Into Bitcoin in 2026

Despite the DXY’s weakness, Bitcoin has continued to struggle. The asset has lagged behind both precious metals and technology stocks in 2025 and is on track to post its worst quarter since 2018.

BeInCrypto also highlighted that many new investors are currently favoring traditional stores of value over crypto exposure. Still, many in the crypto community remain hopeful that gold’s rally could eventually be followed by a similar move in Bitcoin.

Analyst Garrett noted that the upside in silver, palladium, and platinum appears driven by short squeezes, warning that such moves are unlikely to last.

“Once they start to reverse, they are likely to drag gold lower as well. The capital will rotate out of precious metals and into BTC and ETH,” he claimed.

David Schassler, VanEck’s Head of Multi-Asset Solutions, also predicts a comeback for Bitcoin in 2026. He believes the asset is positioned for a rebound as monetary debasement intensifies and market liquidity returns.

“Bitcoin is lagging the Nasdaq 100 Index by roughly 50% year-to-date, and that dislocation is setting it up to be a top performer in 2026. Today’s weakness reflects softer risk appetite and temporary liquidity pressures, not a broken thesis. As debasement ramps, liquidity returns, and Bitcoin historically responds sharply. We have been buying,” Schassler forecasted.

Lastly, Puckrin pointed out that Bitcoin reaching new highs in 2026 is not an unlikely scenario.

“Crucially, there’s still every possibility that Bitcoin will reverse course and hit new ATHs in 2026, while gold and silver may begin to lose some of their shine.

In the months ahead, markets will test whether precious metals can uphold record gains, or if expected profit-taking sparks the capital rotation.

Ethereum price has traded almost flat over the past week, barely moving despite endless predictions. On the surface, nothing looks to be happening. But the chart and on-chain data together tell a very different story. A clean breakout structure is forming, and at the same time, selling pressure from long-term holders has collapsed.

That combination is rare. If it holds, Ethereum’s next major move may already be in motion.

Inverse Head-And-Shoulders Breakout Aligns With On-Chain Selling Collapse

On the daily chart, Ethereum is forming a well-defined inverse head-and-shoulders reversal pattern. The structure has a relatively flat neckline near the $3,400 zone, which is important. Flattish necklines tend to attract stronger follow-through when the price finally breaks through.

If Ethereum closes decisively above this neckline (around $3,400), the measured move from the then confirmed pattern points toward a target near $4,400. That target comes directly from the height of the head projected upward. From a technical perspective, the setup looks clean.

Ethereum Breakout Pattern: TradingView

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What makes this pattern more compelling is what is happening on-chain.

Hodler Net Position Change measures whether longer-term holders are selling or accumulating. Since November 26, this metric has shifted dramatically. At that point, long-term holders were selling roughly 1.1 million ETH. By December 23, that number had dropped to just 54,427 ETH.

That is a reduction of more than 95% in selling pressure.

Holder Selling Dips 95%: Glassnode

This matters because long-term holders tend to reduce selling near important turning points. When a breakout pattern forms at the same time selling pressure collapses, it suggests supply is drying up rather than increasing. That creates a stronger base for any upside move above the neckline.

In simple terms, the chart is signaling a breakout, and the on-chain data shows fewer sellers standing in the way.

Cost Basis Levels And Key Ethereum Price Zones

The next question is whether Ethereum can realistically reach and breach the neckline.

Cost basis data helps answer that. Cost basis shows where large amounts of ETH were last acquired. These zones often act as resistance when price revisits them, because holders may sell near breakeven.

For Ethereum, the most important cost basis cluster sits between roughly $3,150 and $3,173. Around 2,940,000 ETH were accumulated in this range. That makes it the strongest supply wall on the way up.

Most Critical ETH Supply Cluster: Glassnode

A sustained move above this zone would clear the path toward the $3,400 neckline. From current levels, that represents roughly a 7% advance. Do note that the $3,150 level also appears on the price chart, validating its importance.

Once above $3,400, the next key level comes near $3,480, followed by a relatively thin resistance zone until around $4,170.

If momentum builds after the breakout, the full inverse head-and-shoulders target near $4,400 comes into view.

Risk still exists, and it is well defined. If Ethereum loses $2,800, the structure weakens. A drop below $2,620 would fully invalidate the bullish setup and suggest sellers have regained control.

Ethereum Price Analysis: TradingView

For now, though, the balance favors the upside. A textbook reversal pattern, a sharp collapse in long-term selling, and a clearly defined resistance map all point to the same conclusion. Yet, the bullish theory succeeding clearly depends on a clean close above $3,150, the supply wall clearance zone.

PumpFun’s PUMP token has experienced a nearly 35% decline in value over the past month, significantly underperforming the broader crypto market.

The decline comes despite the platform’s ongoing buyback program. This has raised questions on the effectiveness of revenue-backed support mechanisms in the face of sustained whale selling and a wider market downturn.

Buyback-Driven Demand Falls Short Amid Broader Sell-off

Pump.fun launched its buyback program for the native PUMP token in July 2025, shortly after the token’s debut. Under this mechanism, the platform allocates 100% of its revenue to purchasing PUMP. This creates consistent and substantial daily buy pressure.

Since inception, these buybacks have amounted to approximately $218.1 million in total purchases. The network has deployed $32.7 million in buybacks over the past 30 days alone.

In theory, token buybacks are typically considered bullish, as they reduce circulating supply and provide sustained demand support.

However, this aggressive, revenue-backed strategy has not been sufficient to offset the broader market downturn’s impact. Since early October, the crypto market has faced mounting headwinds.

The total cryptocurrency market capitalization has declined by nearly 30%, with major assets such as Bitcoin (BTC) and Ethereum (ETH) experiencing substantial losses.

PUMP has not been immune to this trend. The token has dipped by approximately 35% over the past 30 days.

“PumpFun is allocating 100% of its revenue to PUMP buybacks, amounting to nearly $1 million in daily buy pressure. Despite this, the token is down over 80% from its ATH and about 30% below its previous all time low (pre-buybacks). This clearly shows that buybacks, no matter how aggressive, have limited impact in a market downturn especially when the token’s utility is weak or constrained,” an analyst wrote.

The downtrend extended further today, with the altcoin falling an additional 6.9%. At press time, it was trading around $0.0017, a price last seen during the October market-wide sell-off.

Pump.fun (PUMP) Price Performance. Source: BeInCrypto Markets

PUMP’s challenges have been further exacerbated by recent whale activity. One notable whale recently deposited 3.8 billion PUMP, valued at approximately $7.57 million, into FalconX after holding the position for three months. This whale withdrew the tokens from Binance at $19.53 million, leading to an unrealized loss of $12.22 million.

Data from Nansen indicates that, over the past 30 days, balances of large investors, defined as wallets holding more than 1 million PUMP tokens, have declined by 13.07%. When large holders exit positions at substantial losses, it often reflects waning confidence in the token.

Overall, PUMP’s performance highlights the limits of even aggressive, revenue-backed buybacks during broader market downturns. As long as selling pressure from large holders persists and investor risk appetite continues to weaken, buybacks alone are unlikely to provide sustained price support.

Tom Lee recently said the Bitcoin price could still push above $100,000 before 2025 ends. It is a bold call, especially with Bitcoin trading sideways and momentum looking tired. At first glance, the market does not look ready. Big money flows are weakening, long-term holders are selling, and price action remains compressed.

But Bitcoin has one remaining path that could still make Lee’s prediction possible. It does not rely on fresh purchases. It relies on positioning.

Big Money And Conviction Holders Are Still Headwinds

The first problem with Tom Lee’s Bitcoin price prediction, highlighted on CNBC, stems from capital flows.

The Chaikin Money Flow, or CMF, which tracks whether large capital is entering or leaving the market, remains weak. Between December 17 and December 23, the Bitcoin price moved slightly higher, but the CMF trended lower. That is a bearish sign. It shows that larger players are reducing exposure even as price holds up.

CMF readings also collapsed sharply after December 21, falling more than 200% before rebounding around 68%. The rebound looks encouraging, but CMF is still below zero. That means capital inflows remain weak, not strong.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Weak Capital Flow: TradingView

The second headwind comes from long-term holders. These are wallets that historically sell late, not early.

Over the past month, long-term holder net position change has stayed deeply negative. On November 23, long-term holders were selling roughly 97,800 BTC per day. By December 23, that figure had climbed to nearly 279,000 BTC sold in a single day. That’s a 185% surge.

HODlers Keep Selling: Glassnode

That is a massive increase in distribution from conviction holders. When both big capital flow and long-term holders lean negatively, sustained upside becomes difficult.

The Only Way Bitcoin Can Still Reach $100,000

Despite those headwinds, Bitcoin is not out of options. But the path relies on an unlikely force.

The market is heavily skewed toward shorts.

Looking at the 30-day liquidation map, cumulative short liquidation leverage stands near $3.41 billion. Long liquidation leverage sits closer to $2.14 billion. That imbalance means more than 60% of leverage is positioned against the price going up.

This matters because when buying pressure is weak, price can still rise through forced liquidations, like earlier. In simple terms, Bitcoin does not need new buyers. It needs shorts to be wrong.

BTC Liquidation Map: Coinglass

A sharp move higher would force short positions to close, which creates automatic buying. That buying can then cascade into further liquidations, even if underlying demand remains soft.

This is the only realistic mechanism left for a fast upside move. Also, the biggest chunk of the liquidation cluster, on the short side, lies between $88,390 and $96,070. Time to see if the BTC price levels can move in that zone.

Bitcoin Price Levels That Decide If Tom Lee Is Right

For a short squeeze to begin, Bitcoin must clear specific levels.

The first zone sits around $91,220. A sustained move above this area would begin liquidating lower-leverage short positions. That alone would improve short-term momentum.

The real trigger lies near $97,820. This level has capped price multiple times since mid-November and aligns with the densest short liquidation cluster. A break above it would put most of the $3.41 billion in short leverage at risk.

If that cascade begins, Bitcoin could move quickly toward the psychological $100,380 level without needing strong capital inflows or long-term holder support. But the invalidation is clear.

Bitcoin Price Analysis: TradingView

If Bitcoin fails to reclaim $91,220 and continues to drift sideways, CMF weakness and long-term holder selling remain dominant. In that case, the short squeeze never starts, and Tom Lee’s Bitcoin price prediction target stays out of reach. For now, Bitcoin is stuck between conviction selling and leveraged positioning.

The prediction lives or dies on one thing only: whether shorts are forced to cover.

Bitcoin’s (BTC) price has dipped nearly 1% again today, extending its broader downtrend, which has seen it drop 3.6% so far this month. However, 2 key metrics now hint at an easing of selling pressure.

Despite this, some analysts caution that buying power remains weak, restricting the chances of a significant price rally at least in the short term.

Key Metrics Show Reduction in Bitcoin Selling Pressure

According to data from CryptoQuant, Bitcoin’s Coin Days Destroyed (CDD) metric has experienced a significant decline. For context, CDD tracks how long Bitcoin remains unspent before it is moved.

When older coins are transferred, more coin days are destroyed, often signaling distribution by long-term holders. Elevated CDD levels are typically associated with selling pressure from these investors, while lower readings suggest that long-term holders are staying put.

“We are now more than a month past the large BTC move from Coinbase.
As a result, all averaged data is gradually returning to normal levels. Looking at Coin Days Destroyed (CDD), we can clearly observe a sharp decline following that event. What’s particularly interesting is that this decrease has reached a level well below the previous spike,” Darkfost wrote.

Bitcoin’s Declining CDD. Source: CryptoQuant

According to the analyst, this shift indicates that long-term holder activity is cooling. Bitcoin is changing hands less frequently among older wallets. Darkfost added that this shift could have broader implications for the market.

“This decline in CDD is a positive signal, as LTHs still represent the largest potential source of selling pressure, given they hold the biggest share of the total supply.”

The analyst also emphasized that the sustained decline in long-term holder selling pressure helps alleviate overall market stress and, if the trend persists, may contribute to the formation of a market bottom.

Another sign is emerging from Bitcoin exchange-traded fund (ETF) flows. Since early November, the 30-day moving average (30D-SMA) of net inflows into Bitcoin ETFs has remained in negative territory, reflecting persistent net outflows.

However, the magnitude of these negative readings has been gradually decreasing. The 30D-SMA is now moving closer to zero, suggesting a decline in ETF outflows compared to earlier levels.

Bitcoin ETF Netflows. Source: Glassnode

Data from SoSoValue further reflects this trend. On December 15, total net outflows reached $357.69 million. This figure narrowed to $277.09 million on December 16 and $161.32 million on December 18.

Outflows continued to ease to $158.25 million on December 19 and $142.19 million on December 22. Still, it’s worth noting that while daily figures have decreased, this does not confirm a clear directional shift.

Meanwhile, analysts at 10x Research note that market conditions are changing. The firm, which has been bearish since October, observes that shifts in derivatives, ETFs, and technical signals are underway.

“After Being Bearish, This Is the Day, and the Exact Hour, We Will Buy Bitcoin. The largest Bitcoin options expiry on record is approaching, with strikes and open interest revealing where stress and opportunity may be building. At the same time, past year-end patterns suggest that periods of extreme caution can quietly give way to sharp sentiment reversals once calendars and risk budgets reset. Technical conditions are also evolving, hinting that the balance between downside exhaustion and upside optionality is becoming more nuanced,” the post read.

Despite these signals, a potential rally would likely require a stronger and more consistent return of demand. BeInCrypto reported that stablecoin reserves on major exchanges have declined significantly, with capital outflows totaling nearly $1.9 billion over the past 30 days.

The reduction suggests lower immediate buying capacity and continued caution among market participants. Additionally, CryptoQuant CEO Ki Young Ju has noted that a recovery in market sentiment might take several months to develop.

Bitcoin has spent a while frustrating both bulls and bears, bouncing between $85,000 and $90,000 with no clear breakout in sight. The culprit is not a lack of buying interest or macroeconomic headwinds — it is the options market.

Derivatives data reveal that dealer gamma exposure is currently suppressing spot price volatility through mechanical hedging flows. This structure has kept Bitcoin pinned in a tight range, but the forces holding price in place are set to expire on December 26.

The Gamma Flip Level

At the center of this dynamic is what traders call the “gamma flip” level, currently sitting around $88,000.

Above this threshold, market makers holding short gamma positions are forced to sell into rallies and buy dips to maintain delta neutrality. This behavior dampens volatility and pulls the price back toward the middle of the range.

Below the flip level, the mechanics reverse. Selling pressure feeds on itself as dealers hedge in the same direction as price movement, amplifying volatility rather than suppressing it.

$90K Keeps Rejecting as $85K Keeps Holding

The $90,000 level has repeatedly acted as a ceiling, and the reason lies in concentrated call option positioning.

Dealers are short a significant amount of call options at the $90,000 strike. As the spot price approaches this level, they must sell Bitcoin to hedge their exposure. This creates what appears to be organic sell pressure but is actually forced supply from derivatives hedging.

Every rally toward $90,000 triggers this hedging flow, explaining why breakout attempts have repeatedly failed.

Source: NoLimitGains via X

On the downside, $85,000 has served as reliable support through the exact mechanism in reverse.

Heavy put option positioning at this strike means dealers must buy spot Bitcoin as the price drops toward that level. This forced demand absorbs selling pressure and prevents sustained breakdowns.

The result is a market that appears stable on the surface but is actually held in artificial equilibrium by opposing hedging flows.

Futures Liquidations Reinforce the Range

The options-driven range is not operating in isolation. Liquidation heatmap data from Coinglass shows that leveraged futures positions have clustered around the same price levels, creating additional magnetic forces that reinforce the $85K-$90K corridor.

Above $90,000, significant short liquidation levels have accumulated. If the price were to break through this ceiling, forced short covering would trigger a cascade of buy orders. Conversely, long liquidation levels are concentrated below $86,000, meaning a breakdown would accelerate as leveraged longs get stopped out. Both options dealer hedging and futures liquidation mechanics are now aligned, doubling the structural pressure that keeps Bitcoin trapped in its current range.

Source: Coinglass Options Trap Lies Ahead

The December 26 options expiry is shaping up to be the largest in Bitcoin’s history, with approximately $23.8 billion in notional value set to roll off.

For comparison, annual expiries totaled roughly $6.1 billion in 2021, $11 billion in 2023, and $19.8 billion in 2024. The rapid growth reflects increasing institutional participation in Bitcoin derivatives markets.

According to an analyst NoLimitGains, roughly 75% of the current gamma profile will disappear after this expiry. The mechanical forces that have pinned the price in the $85K-$90K range will essentially disappear.

Dealer Gamma Dominates ETF Flows

The scale of dealer hedging activity currently overwhelms spot market demand. Data cited by analysts shows dealer gamma exposure at approximately $507 million, compared to just $38 million in daily ETF activity — a ratio of roughly 13 to 1.

This imbalance explains why Bitcoin has ignored seemingly bullish catalysts. Until the derivatives overhang clears, the math of dealer hedging matters more than the narrative of institutional adoption.

What Comes Next

Once the December 26 expiry passes, the suppression mechanism will be over. This does not guarantee a specific direction — it simply means Bitcoin will be free to move.

If bulls successfully defend the $85,000 support through expiry, a breakout toward the $100,000 level becomes structurally possible. Conversely, a break below $85,000 in a low-gamma environment could accelerate to the downside.

Traders should expect elevated volatility heading into early 2026 as new positioning establishes itself. The range-bound price action of the past weeks is likely a temporary phenomenon driven by derivatives mechanics, not a reflection of underlying market conviction.

The US federal government’s interest payments on national debt surpassed $1 trillion for the first time in fiscal year 2025. Interest expenditure now exceeds both defense spending and Medicare—a first in American history.

Wall Street analysts and social media users alike are invoking “Weimar” as warnings of fiscal crisis mount. Meanwhile, the US Treasury is positioning stablecoins as a strategic tool to absorb the growing flood of government debt.

The Numbers: A Crisis in Plain Sight

In fiscal year 2020, net interest payments totaled $345 billion. By 2025, that figure nearly tripled to $970 billion—outpacing defense spending by approximately $100 billion. When accounting for all interest on publicly held debt, the figure crossed $1 trillion for the first time.

Source: US Congressional Budget Office via KobeissiLetter

The Congressional Budget Office projects cumulative interest payments over the next decade will total $13.8 trillion—nearly double the inflation-adjusted amount spent over the past two decades.

The Committee for a Responsible Federal Budget warns that under an alternative scenario where tariffs are ruled illegal and temporary provisions of recent legislation are made permanent, interest costs could reach $2.2 trillion by 2035—a 127% increase from current levels.

Why This Is Unprecedented

The debt-to-GDP ratio has reached 100%, a threshold not seen since World War II. By 2029, it will surpass the 1946 peak of 106% and continue climbing to 118% by 2035.

Most concerning is the crisis’s self-reinforcing nature. The federal government borrows approximately $2 trillion annually, with roughly half going solely toward servicing existing debt. CRFB analyst Chris Towner warned of a potential “debt spiral”: “If the people who loan us money get worried we’re not going to pay it all back, we could see higher interest rates—which means we have to borrow more to pay interest.”

Historic FirstYearSignificanceInterest exceeds Defense spending2024First time since World War IIInterest exceeds Medicare2024Debt servicing now largest healthcare expenseDebt reaches 100% of GDP2025First time since WWII aftermathDebt to surpass 1946 peak (106%)2029Will exceed all-time historical record

Source: BeInCrypto Market Reaction: “Weimar” and “Buy Gold”

Social media erupted at these projections. “The trajectory is unsustainable if unchanged,” wrote one user. Another posted “weimar”—a reference to 1920s German hyperinflation. “The debt service era,” declared another, capturing the sentiment that America has entered a new phase.

The overwhelming majority called for flight to hard assets—gold, silver, and real estate. Notably absent was little mention of Bitcoin, suggesting traditional “gold bug” thinking still dominates retail sentiment.

Market Implications

Near-term, surging Treasury issuance absorbs market liquidity. With risk-free yields near 5%, equities and cryptocurrencies face structural headwinds. In the medium term, fiscal pressure may accelerate regulatory tightening and cryptocurrency taxation.

Long-term, however, presents a paradox for crypto investors. As fiscal instability deepens, Bitcoin’s “digital gold” narrative strengthens. The worse traditional finance performs, the stronger the case for assets outside the system becomes.

Stablecoins: Crisis Meets Solution

Washington has found an unexpected ally in its fiscal troubles. The GENIUS Act, signed in July 2025, requires stablecoin issuers to maintain 100% reserves in US dollars or short-term Treasury bills. This effectively transforms stablecoin companies into structural buyers of government debt.

Treasury Secretary Scott Bessent declared stablecoins “a revolution in digital finance” that will “lead to a surge in demand for US Treasuries.”

Standard Chartered estimates stablecoin issuers will purchase $1.6 trillion in T-bills over four years—enough to absorb all new issuance during Trump’s second term. This would exceed China’s current Treasury holdings of $784 billion, positioning stablecoins as a replacement buyer as foreign central banks reduce US debt exposure.

The Debt Service Era Begins

America’s fiscal crisis is paradoxically opening doors for cryptocurrency. While conventional investors rush toward gold, stablecoins are quietly becoming critical infrastructure for US debt markets. Washington’s embrace of stablecoin regulation is not merely about innovation—it is about survival. The debt service era has begun, and crypto may be its unlikely beneficiary.

The Bank of Korea’s latest Financial Stability Report reveals a significant behavioral shift among Korean crypto investors—from aggressive accumulation to strategic profit-taking, raising questions about the impact on global market dynamics.

This means that, even as Bitcoin surged past $100,000 this year, Korean investors have been cashing out rather than doubling down.

Korea’s Outsized Trading Activity Shows Signs of Cooling

South Korea has long punched above its weight in global cryptocurrency markets. Despite representing a fraction of the world’s population, Korean won (KRW) trading pairs have consistently ranked among the top two fiat currencies globally by volume, often rivaling or exceeding the U.S. dollar during peak periods.

But the BOK’s report suggests a notable change in investor behavior. While Korea’s crypto turnover rate remains elevated at 156.8%—significantly higher than the global average of 111.6%—the nature of that activity has shifted. Rather than chasing rallies, Korean retail investors are now taking profits during the 2025 bull market.

“The domestic crypto market shows high turnover rates as most participants are individual investors who tend to realize gains through short-term trading,” the central bank noted.

Concentration Risks and Market Structure Concerns

The report highlights a striking level of market concentration: the top 10% of investors accounted for 91.2% of total trading volume between 2024 and June 2025, according to Financial Supervisory Service data. This concentration raises concerns about potential price manipulation by a small number of players.

Korea’s unique regulatory environment—which effectively bars corporate participation and prohibits foreign investors from trading on domestic exchanges—has created a market dominated almost entirely by retail traders. The absence of professional market makers has also led to liquidity constraints, as evidenced by Tether’s 5x spike on Bithumb during the October market downturn.

The Global Ripple Effect

When Korean traders pull back, global markets notice. Historical data shows that during the 2017 and 2021 bull runs, Korean exchanges like Upbit and Bithumb frequently ranked among the top in global volume. The so-called “Kimchi Premium“—where Korean crypto prices traded above international benchmarks—served as a reliable indicator of retail euphoria.

The current shift to profit-taking behavior may have contributed to the more measured pace of the 2025 rally compared to previous cycles. With Korean retail investors no longer providing the same level of aggressive bid support, global order books have lost a significant source of buying pressure during key accumulation phases.

The shift is not happening in a vacuum. The BOK’s previous report has attributed the domestic crypto slowdown to a booming local stock market. The KOSPI surged by more than 70% year to date to become the world’s top-performing major index, driven by AI-related stocks such as Samsung Electronics and SK Hynix.

Daily trading volumes on major Korean crypto platforms have collapsed by over 80% compared to 2024 peaks, as local investors redirect capital toward equities and US leveraged ETFs. “Where did all the Korean retail investors in the crypto circle go? Answer: To the stock market next door,” analyst AB Kuai Dong observed.

Diverging Paths: Korea vs. Global Institutional Adoption

The contrast with global market trends is stark. While Korea remains retail-dominated, international markets have undergone rapid institutionalization since the SEC approved spot Bitcoin ETFs in January 2024. These products have attracted over $54 billion in net inflows, with BlackRock’s IBIT alone amassing more than $50 billion in assets under management.

The BOK report acknowledges this divergence, noting that global crypto markets have become increasingly correlated with traditional equities—particularly during periods of macroeconomic stress or monetary policy shifts. Bitcoin’s correlation with the S&P 500 has risen notably since 2020, driven by institutional participation, corporate treasury adoption, and the proliferation of ETFs.

Korea’s market, by contrast, remains relatively insulated from these global dynamics. The central bank attributes this to high retail investor concentration, liquidity constraints, and capital controls that limit arbitrage opportunities.

What Comes Next: Institutionalization on the Horizon

The report suggests that Korea’s market peculiarities may diminish as regulatory reforms proceed. The government permitted non-profit corporations to sell crypto assets starting in June and has since allowed professional investors to trade on a trial basis. Discussions are also ongoing regarding the approval of a spot Bitcoin ETF.

The BOK projects that allowing financial institutions and foreign investors to participate could help establish proper market-making mechanisms and ease liquidity constraints. Increased institutional participation would likely reduce trading volume volatility and lower turnover rates over time.

However, the central bank also warns of potential risks. “When corporate and foreign investors with superior information and capital enter the market, domestic crypto prices may become more sensitive to supply-demand shifts,” the report cautioned, emphasizing the need for careful monitoring during the transition.

The Bottom Line

Korea’s crypto market is at an inflection point. The shift from aggressive buying to profit-taking signals a maturing investor base, but it also removes a key source of global market momentum. As institutional frameworks develop and regulatory barriers fall, Korea’s influence on global crypto dynamics may evolve from raw retail volume to more sophisticated capital flows.

For now, the days of Korean retail traders single-handedly driving global rallies appear to be fading—a transition that could reshape market sentiment patterns for cycles to come.

Silver emerged as one of the strongest-performing major assets in 2025, sharply outperforming both gold and Bitcoin. 

The rally was not driven by speculation alone. Instead, it reflected a rare convergence of macroeconomic shifts, industrial demand, and geopolitical pressure that could extend into 2026.

Silver’s 2025 Performance in Context

By late December 2025, silver traded near $71 per ounce, up more than 120% year-to-date. Gold rose roughly 60% over the same period, while Bitcoin ended the year slightly lower after a volatile run that peaked in October.Silver price entered 2025 near $29 per ounce and climbed steadily through the year. Gains accelerated in the second half as supply deficits widened and industrial demand surprised to the upside.

Silver Price Chart In 2025. Source: BullionVault

Gold also rallied strongly, moving from roughly $2,800 to above $4,400 per ounce, supported by falling real yields and central-bank demand. 

However, silver outpaced gold by a wide margin, consistent with its historical tendency to amplify precious-metal cycles.

Gold Price Chart In 2025. Source: BullionVault

Bitcoin followed a different path. It surged to a record near $126,000 in early October before reversing sharply, ending December near $87,000. 

Unlike metals, Bitcoin failed to hold safe-haven inflows during late-year risk-off moves.

Macro Conditions Favored Hard Assets

Several macroeconomic forces supported silver in 2025. Most importantly, global monetary policy shifted toward easing. The US Federal Reserve delivered multiple rate cuts by year-end, pushing real yields lower and weakening the dollar.

At the same time, inflation concerns remained unresolved. That combination historically favors tangible assets, particularly those with monetary and industrial value.

Unlike gold, silver benefits directly from economic expansion. In 2025, that dual role proved decisive.

Industrial Demand Became the Core Driver

Silver’s rally was increasingly anchored in physical demand rather than investment flows. Industrial usage accounts for roughly half of total silver consumption, and that share continues to grow.

The energy transition played a central role. Solar power remained the single largest source of new demand, while electrification across transport and infrastructure added further pressure to already tight supply.

Global silver markets recorded a fifth consecutive annual deficit in 2025. Supply struggled to respond, as most silver production comes as a byproduct of base-metal mining rather than primary silver projects.

Electric Vehicles Added Structural Demand

Electric vehicles significantly increased silver consumption in 2025. Each EV uses 25 to 50 grams of silver, roughly 70% more than an internal-combustion vehicle.

With global EV sales rising at double-digit rates, automotive silver demand climbed into the tens of millions of ounces annually. 

Charging infrastructure amplified the trend. High-power fast chargers use kilograms of silver in power electronics and connectors.

Unlike cyclical investment demand, EV-related silver consumption is structural. Production growth directly translates into sustained physical offtake.

Defense Spending Quietly Tightened Supply

Military demand became a less visible but increasingly important factor. Modern weapons systems rely heavily on silver for guidance electronics, radar, secure communications, and drones.

A single cruise missile can contain hundreds of ounces of silver, all of which is destroyed upon use. That makes defense demand non-recyclable.

Global military spending reached record highs in 2024 and continued rising in 2025 amid wars in Ukraine and the Middle East. 

Europe, the United States, and Asia all expanded procurement of advanced munitions, quietly absorbing physical silver.

Geopolitical Shocks Reinforced the Trend

Geopolitical tensions further strengthened silver’s case. Prolonged conflicts increased defense stockpiling, while trade fragmentation raised concerns about supply security for critical materials.

Unlike gold, silver sits at the intersection of national security and industrial policy. Several governments moved to classify silver as a strategic material, reflecting its role in both civilian and military technologies.

This dynamic created a rare feedback loop: geopolitical risk boosted both safe-haven investment demand and real industrial consumption.

Why 2026 Could Extend the Outperformance

Looking ahead, most of the drivers that powered silver price in 2025 remain in place. EV adoption continues to accelerate. Grid expansion and renewable investment remain policy priorities. Defense budgets show no signs of retreat.

At the same time, silver supply remains constrained. New mining projects face long lead times, and recycling cannot offset growing industrial losses from military use.

Gold may continue to perform well if real yields stay low. Bitcoin may recover if risk appetite improves. But neither combines monetary protection with direct exposure to global electrification and defense spending.

That combination explains why many analysts see silver as uniquely positioned for 2026.

Silver’s 2025 rally was not a one-off speculative spike. It reflected deep structural changes in how the global economy consumes the metal.

If current trends persist, silver’s dual role as a monetary hedge and industrial necessity could allow it to outperform both gold and Bitcoin again in 2026.

Crypto’s next phase of growth is unfolding quietly, with crypto narratives shifting toward everyday use. Adoption in 2026 is increasingly shaped by how people already use crypto in daily financial life.

In an interview with BeInCrypto, representatives from CakeWallet and SynFutures explained where crypto is realistically headed over the next year. According to them, payments, savings, and risk management are replacing speculation as the main drivers of sustained activity.

Crypto as Everyday Money

One of the clearest signs of real crypto adoption heading into 2026 is its growing role as everyday money, particularly in regions where traditional financial systems are unreliable or inaccessible. 

Rather than being used for speculation, crypto is increasingly becoming a practical tool for saving, spending, and transferring value.

“The answer to this varies widely based on where in the world you are, but I see two massive cases for growth in 2026,” said Seth for Privacy, Vice President of CakeWallet. “The first is in the Global South, where demand for stablecoins has skyrocketed in the last few years.”

In these regions, crypto often fills gaps left by inflation, capital controls, or weak banking infrastructure. Stablecoins, in particular, allow people to hold value in a currency that does not rapidly depreciate, while remaining easy to transfer.

“The possibility for an average person in Nicaragua, for instance, to use stablecoins like USDT in a privacy-preserving way to store wealth and pay for real needs will help to protect and shield them against malice and theft,” the executive explained.

As crypto becomes more visible, privacy also becomes more important. For users relying on crypto for daily expenses, protecting transaction data is less about ideology and more about personal safety. 

In this context, adoption is driven by necessity rather than enthusiasm, and growth continues regardless of market cycles.

As these use cases mature, the tools supporting them—especially stablecoins—are becoming increasingly central to how crypto functions globally.

Stablecoin Yield and Payments

While stablecoins have long been associated with emerging markets, their role is expanding rapidly across more developed economies as well. In 2026, they are increasingly positioned as a core financial tool rather than a temporary bridge between crypto and fiat.

“By far the biggest market left untapped today is the West,” Seth said. “Many people have overlooked the usefulness of stablecoins due to easy access to banking and fiat on-ramps.”

However, that perception may shift as users begin to compare the speed and simplicity of stablecoin transfers with traditional financial rails. For many, the appeal lies in avoiding delays, fees, and unnecessary intermediaries.

“Once these users grasp how much easier it is to move back and forth between something like Bitcoin and USDT instead of fiat, the pace of adoption will escalate exponentially,” he added. 

Stablecoins are increasingly shaping how on-chain financial activity functions. More users will likely be attracted to stablecoins for passive income in 2026, tapping into DeFi yield.

“Stablecoins are becoming the base layer of DeFi trading and derivatives markets,” said Wenny Cai, COO at SynFutures. She added that, rather than sitting idle, these assets are increasingly used as active balances. Users are beginning to treat stablecoins as “working capital—funds that are actively deployed, not just parked.”

This shift in how value is held and moved is also changing how users interact with crypto beyond simple payments.

When Usage Becomes Intentional

As crypto markets mature, user behavior is changing alongside them. Instead of chasing short-term price movements, many users are focusing on using crypto in more controlled and intentional ways.

“We’ll see them shift to using crypto as money, finally!” Seth told BeInCrypto. “When speculation dies down and prices stabilize, we will continue to see massive growth in usage of crypto to actually pay for goods and services.”

At the same time, some users are engaging with tools that allow them to better manage exposure and uncertainty. According to Cai, retail users in 2026 are gravitating toward active capital management, not passive speculation.

Rather than overdiversifying, users are narrowing their focus.

“Instead of buying and holding dozens of tokens, users increasingly prefer to trade major assets with leverage, hedge downside risk, or deploy structured strategies—all on-chain,” she explained.

While the underlying mechanics can be complex, the motivation is straightforward. Users want more control, clearer outcomes, and fewer surprises.

As user behavior evolves, adoption is also broadening across different groups and industries.

DeFi and TradFi Integration

Crypto adoption in 2026 is not limited to a single demographic. 

Instead, it spans individuals, businesses, and professional market participants, each driven by different needs.

“The biggest overall growth is still happening in the Global South, where real people have real needs today, not just a desire to speculate,” Seth explained. “Poor access to banking, rapidly depreciating fiat currencies, and harsh remittance controls make these countries especially ready to accelerate their usage of crypto in 2026.”

In parallel, professional users are increasingly integrating crypto tools into existing operations.

“Beyond fintech, trading firms, digital asset managers, and online brokerages are leading adopters of DeFi tools in 2026,” Cai said.

What has changed is readiness. Infrastructure has improved, platforms are more stable, and tools now support consistent, high-volume activity. As a result, adoption is no longer framed as experimentation but as a practical business decision.

Yet even as adoption broadens, one challenge continues to shape how far crypto can realistically expand.

Platforms that Make Crypto Easy to Use

Across both interviews, one common conclusion stands out: the main barrier to broader adoption is no longer technical capability, regulation, or liquidity.

“Absolutely user experience,” said Seth when asked what would most unlock crypto’s growth in 2026. “For too long, crypto tools have been built ‘by nerds and for nerds’.”

Cai echoed that view from the trading side. 

“The infrastructure works, liquidity exists, and demand is proven—but advanced trading tools still feel intimidating to many users,” she said.

As crypto enters its next phase, success will increasingly depend on clarity and simplicity. Platforms that make powerful tools feel intuitive and safe are likely to capture sustained usage.

In 2026, the crypto narratives that matter most may be the ones users barely notice—because they simply work.

Ethereum is once again attempting to reclaim the $3,000 level after several failed efforts this month. ETH briefly pushed higher during early trading but continues facing resistance amid fragile broader market conditions. 

Despite muted momentum, on-chain data suggests investors may be positioning to support a potential recovery.

Ethereum Holders Continue To Grow

Ethereum’s network growth has surged to a four-year and seven-month high. This metric reflects the pace at which new addresses are joining the network. The increase signals renewed interest at current price levels, even as ETH struggles to break higher.

Rising network growth often introduces fresh capital. New participants expand liquidity and strengthen demand foundations. For Ethereum, this trend is particularly important as price recovery depends on sustained inflows rather than short-term speculative trading. Strong address growth suggests long-term confidence remains intact.

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Ethereum Network Growth. Source: Santiment Bitmine Could Be Aiding Price Recovery

A major contributor to this growth is Bitmine. The firm has quickly accumulated Ethereum through its treasury strategy. Bitmine now holds approximately 4.066 million ETH, representing 3.37% of the total supply within six months.

The company has publicly targeted ownership of 5% of all ETH, a move that could further tighten circulating supply and support price appreciation.

Macro indicators present a mixed backdrop. The MVRV Long/Short Difference remains at low negative levels, indicating neither long-term holders nor short-term traders are currently in profit. This lack of profitability often slows transaction activity, as participants hesitate to move assets at a loss.

Low profit conditions can suppress velocity across the network. However, such environments also reduce sales pressure. If broader macro conditions improve, long-term holders typically act as stabilizers. Their reluctance to sell at unfavorable prices can provide a base for recovery when demand returns.

Ethereum’s current setup reflects this balance. Weak profitability limits enthusiasm, yet it also prevents aggressive distribution. A positive external catalyst could shift sentiment quickly, allowing stronger hands to absorb supply and push ETH higher.

Ethereum MVRV Long/Short Difference. Source: Santiment ETH Price Faces Its Challenge

Ethereum trades near $2,968 at the time of writing, sitting just below the $3,000 resistance. The level has capped price action repeatedly in recent weeks. Continued failure to reclaim it keeps ETH vulnerable to volatility and short-term pullbacks.

To revisit December’s high of $3,447, ETH requires a recovery of roughly 16%. The first hurdle remains $3,131, a key resistance zone. Sustained network growth and continued accumulation by large entities like Bitmine could provide the buying pressure needed to reach this level.

ETH Price Analysis. Source: TradingView

Downside risks persist if Ethereum fails to secure $3,000 as support. A rejection could send the price back toward $2,798, a level previously tested. Given ETH’s tendency for sharp moves in this range, a breakdown could accelerate losses before stability returns.

This year, crypto looked less like an experiment and more like a maturing market, shaped by institutional consolidation, faster-moving regulation, and growing macroeconomic pressure. 

As the industry moves toward 2026, its direction will depend on which assets can withstand institutional scrutiny and how recession risk, monetary policy shifts, and stablecoin adoption reshape crypto’s place within the dollar-based financial order.

Institutional Capital Forces Crypto Consolidation

Throughout 2025, BeInCrypto spoke with veteran investors and leading economists to assess where the crypto industry is headed and what lies ahead for a sector long defined by uncertainty.

Shark Tank investor Kevin O’Leary starts from a simple premise. As institutional capital moves in, crypto shifts away from endless token hunting and toward a narrow set of assets that can justify long-term allocation.

He pointed to his own experience as a case study. O’Leary began as a crypto skeptic, but as regulation started to take shape, he chose to gain exposure.

At first, that meant buying broadly. His portfolio grew to 27 tokens. He later concluded that the approach was excessive. Today, he holds just three cryptocurrencies, which he said are more than enough for his needs.

“If you statistically look at the volatility of just Bitcoin and Ethereum and a stablecoin for liquidity… That’s all I need to own,” O’Leary told BeInCrypto in a podcast episode.

For O’Leary, each asset serves a specific function. He described Bitcoin as an inflation hedge, often comparing it to digital gold defined by scarcity and decentralization. 

Ethereum, by contrast, serves not as a currency but as core infrastructure for a new financial system, with long-term growth tied to its technology. Stablecoins, he noted, were held for flexibility rather than upside.

That framework informs his outlook for 2026. As regulation advances and institutional participation deepens, O’Leary expects capital to concentrate around Bitcoin and Ethereum as the market’s core holdings. Other tokens will struggle to justify sustained allocation and will compete largely on the margins.

In that environment, crypto investing shifts away from speculation and toward disciplined portfolio construction, closer to how traditional asset classes are managed.

But even as investors narrow their holdings, the issue of who ultimately controls crypto’s monetary rails is becoming more complicated.

Dollar Control Moves Onchain

While investors like O’Leary focus on narrowing exposure, Greek economist and former finance minister Yanis Varoufakis pointed to a different shift.

In a BeInCrypto podcast episode, he argued that control over crypto’s monetary infrastructure is tightening, particularly as stablecoins move under closer state and corporate oversight.

Varoufakis pointed to recent US policy as a turning point. By advancing legislation such as the GENIUS Act, Washington is embracing a stablecoin-based extension of the dollar system. Rather than challenging the existing financial order, stablecoins are being positioned to reinforce it.

He linked this approach to the logic of the so-called Mar-a-Lago Accord, which seeks to weaken the dollar’s exchange value while preserving its dominance in global payments. That contradiction sits at the center of his concern.

Varoufakis warned that this model outsources monetary power to private issuers, increasing financial concentration while reducing public accountability. The risks, he said, extend beyond the US, as dollar-backed stablecoins spread across foreign economies.

“As we speak, there are Malaysian companies, Indonesian companies, and companies here in Europe that increasingly use Tether… which is a huge problem. Suddenly, these countries… end up with central banks that do not control their money supply. So their capacity to effect monetary policy diminishes and that introduces instability,” Varoufakis said in a BeInCrypto podcast episode.

Looking ahead to 2026, he described stablecoins as a systemic fault line. 

A major failure could trigger a cross-border financial shock, exposing crypto’s deepest vulnerability, not volatility, but its growing entanglement with legacy power structures.

These risks remain largely theoretical in calm conditions. The real test comes when growth slows, liquidity tightens, and markets begin to strain.

Former economic advisor to Ronald Reagan, Steve Hanke, warned that such a stress test is approaching.

Economic Slowdown Stress Tests Markets

In a BeInCrypto podcast episode, the Johns Hopkins professor of applied economics said the US economy is heading toward a recession, driven not by inflation but by policy uncertainty and weak monetary growth.

Hanke pointed to inconsistent tariff policy and expanding fiscal deficits as key drags on investment and confidence. 

“When you have that, investors that are investing in, let’s say, a new factory or something, hunker down and say, ‘well, we’re going to wait and let the dust settle to see what’s going to happen.’ They stop investing,” Hanke said.

As economic conditions deteriorate, Hanke expects the Federal Reserve to continue to respond with looser monetary policy.

He did not address crypto directly. His macro outlook, however, defines the conditions under which crypto will be tested.

Tight liquidity followed by sudden easing has historically exposed weaknesses across financial markets, particularly in systems reliant on leverage or fragile confidence.

For crypto, the implication is structural rather than speculative. 

In an environment shaped by recession risk and policy volatility, stress reveals what growth conceals. What endures is not what expands fastest, but what is built to withstand contraction.

The Central Bank of Russia unveiled a long-awaited conceptual framework to regulate crypto trading on December 23, marking a decisive shift from ad-hoc restrictions toward a structured, licensed market.

Under the proposal, cryptocurrencies and stablecoins will be legally recognized as currency values that can be bought and sold. However, they remain prohibited as a means of payment inside Russia. 

What the New Framework Introduces

The central bank submitted its legislative proposals to the Government of Russia for review.

The announcement marks the largest effort yet to bring crypto activity under formal financial supervision, while maintaining strict controls on retail risk and capital flows.The proposal establishes a two-tier investor model, separating retail and professional participants.

Non-qualified investors will be allowed to purchase only the most liquid cryptocurrencies, as defined in future legislation. 

Access will require passing a mandatory risk-knowledge test, and purchases will be capped at 300,000 rubles per year.

Qualified investors will face fewer restrictions. They will be permitted to buy any cryptocurrency except anonymous tokens whose smart contracts conceal transaction data. 

Volume limits will not apply, although risk-awareness testing remains mandatory.

The central bank emphasized that cryptocurrencies remain high-risk instruments, citing volatility, lack of sovereign backing, and sanctions exposure.

How This Differs From Russia’s Current Stance

Until now, Russia’s crypto policy has been fragmented. Ownership and trading were legal in practice but lacked a clear regulatory pathway. 

Retail access operated in a gray zone, intermediaries faced uncertainty, and enforcement relied on informal restrictions rather than explicit market rules.

The new concept formalizes what was previously tolerated, while sharply narrowing how retail investors can participate. 

It also confirms that Russia will regulate crypto activity through existing financial infrastructure, allowing exchanges, brokers, and trust managers to operate using their current licenses. Additional requirements will apply to crypto-specific depositaries and exchange services.

The framework also clarifies cross-border rules. Russian residents will be allowed to buy crypto abroad using foreign accounts and transfer crypto overseas through Russian intermediaries, provided they notify tax authorities.

Timeline and Enforcement

The central bank plans to finalize the legislative base by July 1, 2026. From July 1, 2027, illegal crypto intermediation will trigger liability comparable to penalties for illegal banking activity.

This phased approach gives market participants time to align with licensing, disclosure, and compliance requirements.

How Russia’s Approach Compares Globally

AreaRussia (BoR Concept)EU (MiCA)United StatesLegal statusInvestment asset (“currency value”), not paymentRegulated crypto marketFragmented federal & state oversightRetail accessAllowed with testing and strict capsAllowed via disclosure regimeBroad, no federal capsIntermediariesExisting licenses + added crypto rulesMandatory CASP licensingMulti-agency frameworkStablecoinsTradable, payment banHeavily regulatedFederal stablecoin law in placeEnforcementPhased, starts 2027Already activeOngoing agency enforcement

Overall, Russia is not liberalizing crypto in the Western sense. 

Instead, it is moving crypto out of the gray market, tightening supervision, limiting retail exposure, and positioning regulated crypto trading as an extension of its traditional financial system.