Crypto Market Stabilizes at $2.97T, Institutional Buying Contrasts Declining Inflows and Holder Selling

Crypto Industry Current State Analysis Past 48 Hours

The cryptocurrency market has stabilized at 2.97 trillion dollars after declining from 4.14 trillion, with Bitcoin facing price stagnation around 80,000 to 100,000 dollars despite strong institutional buying[3][4]. Ethereum traded between 2,828 and 3,001 dollars over the past week, showing minor fluctuations amid anticipation for its 2026 Glamsterdam upgrade to boost security and MEV fairness[3][7].

Key market movements include a paradox of robust institutional accumulation, with 68 percent of investors allocating to Bitcoin ETFs and institutions holding 12 percent of supply, contrasted by declining on-chain inflows after 2.5 years of growth and long-term holders distributing nearly 300 billion dollars in dormant Bitcoin[1][5][12]. This has led to Q4 2025s second-worst quarterly performance at negative 20.44 percent, though trading volume stays elevated, signaling sustained interest[4][10].

No major deals, partnerships, or product launches emerged in the past 48 hours, but upcoming events like the Bitcoin Munari token launch on December 28 and Standard Chartered's XRP projection to 8 dollars by 2026 shape sentiment[3]. Regulatory changes remain steady, with the Feds Reserve Management Program injecting 40 billion dollars monthly in disguised QE via Treasury purchases, ending QT, and signaling 2026 rate cuts to low-3 percent, favoring Bitcoin as a hedge[1]. Consumer behavior reflects caution, with U.S. investors limiting crypto to 1 to 5 percent portfolio allocations amid volatility and geopolitical tensions[2][6].

Leaders like CryptoQuant CEO Ki Young Ju note weakening inflows may delay sentiment recovery for months[5]. Compared to prior weeks, this marks a shift from earlier 2025 red-year resets, with BlackRocks IBIT ETF ranking sixth in global inflows despite momentum waning[14]. Overall, the industry consolidates bullishly long-term, eyeing Fed liquidity for Bitcoin's potential 200,000-dollar surge by mid-2026, but short-term risks from holder selling persist[1][12].

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This content was created in partnership and with the help of Artificial Intelligence AI