The crypto market is preparing us for a deeper global sell-off

Market Overview

The crypto market capitalisation fell by 1.4% to $2.97T, falling below the $3T mark once again. The market was unable to repeat the robust rebound from the local bottom, as it did after 23 November and 2 December, indicating increased pressure from sellers. It appears that the longer the market remains away from its highs, the more the larger players believe in a shift to a bear market. Unlike the sharp impulses characteristic of retail players, large players are prone to prolonged and measured sell-offs, but one should not expect them to return to buying quickly.

Bitcoin was once again sold off on a rise above $90K. It is noteworthy that this occurred against the backdrop of a decisive rally in gold and other precious metals, as well as the momentum of the weakening dollar. This once again highlights the change in the underlying attitude to risk, which is also confirmed by the sell-off of global bonds. In the coming weeks, we can expect an even more pronounced decline in cryptocurrencies, as well as the spread of risk aversion to stocks and currencies of developing countries.

According to CoinShares, global investment in crypto funds declined by $952 million last week, following three weeks of inflows. Investments in Bitcoin fell by $460 million, in Ethereum by $555 million, and in multi-asset funds by $56 million. Investments in Solana rose by $49 million, in XRP by $63 million, and in Chainlink by $3 million.

The coming year, 2026, will be turbulent for Bitcoin, with economic and political risks, as well as the lack of a clear trend in the crypto market, creating a challenging environment for the first cryptocurrency, according to Galaxy Digital. BTC will remain in a phase of chaos with a high risk of correction.

Bitcoin can cause unnecessary problems for its owners. In addition, it is inferior to gold as a store of value, said billionaire Ray Dalio. In his opinion, BTC is unlikely to become a widely used means of payment. For several fundamental reasons, it is unlikely to be held in significant volumes on the balance sheets of central banks and in the reserves of large states.

BitMine purchased 98,852 ETH (~$300 million) over the past week at an average price of $2,991. The company’s Ethereum reserves reached 4.066 million coins, or 3.37% of the total supply of the second-largest cryptocurrency by market capitalisation. BitMine CEO Tom Lee called the milestone of 4 million ETH in just five months ‘an incredible achievement.’

The FxPro Analyst Team