Cryptocurrency Market Consolidates: Funds Flow to BTC and ETH Ahead of Holidays

According to analysis from Wintermute, one of the largest market makers in the crypto industry, despite short-term fluctuations, the overall market liquidity is becoming calmer. Activity is expected to decrease due to the approaching New Year's holidays, with prices continuing to fluctuate within a limited range. In the medium- and long-term perspective, the entry of traditional financial institutions could provide strong support to the market.

Today's data confirms this trend: the total crypto market capitalization stands at about $3 trillion, with a drop of 0.6-0.8% over the day. Bitcoin is trading at $88,000, down 0.7%, while Ethereum holds near $2,970 with a 1-2% decline. Analysts note that the market is preparing for a major options expiry worth $28 billion for BTC and ETH on December 26, which could trigger increased volatility due to thin liquidity during the holiday period.

According to web search data, the crypto market in December 2025 is transitioning from strong growth earlier in the year to correction and consolidation. Bitcoin is testing resistance near $90,000 but pulling back, while gold reaches new highs, drawing investor attention to safe assets. Ethereum shows resilience thanks to whale accumulation and stablecoin dominance, despite the price dip. Institutional flows remain positive: spot BTC ETFs recorded an outflow of $142.2 million, but ETH saw an inflow of $84.6 million. Overall, stablecoins continue to expand, with a record number of USDC holders on the Base and Polygon networks.

Experts on X emphasize capital rotation: funds are not leaving the market but are being redistributed into stablecoins and profitable strategies in DeFi.

Coinbase Institutional analysts note that the November correction has "cleansed" speculative excess, reducing leverage to 4-5% of capitalization, making the market healthier ahead of 2026.

Ahead of the US GDP data release, traders expect pressure on BTC, ETH, and XRP due to heightened fear (Fear & Greed index at 24). However, considering institutional interest - from JPMorgan exploring crypto trading to over 100 new ETFs, the market could gain momentum for growth. Wintermute forecasts that the entry of traditional finance will provide support, making 2026 promising for BTC and ETH.