Crypto market review: BTC and ETH edge higher as sentiment remains cautious
The global cryptocurrency market experienced a modest rebound over the past 24 hours, with the combined market capitalization climbing above $3 trillion, up approximately 1.35%. Major digital assets extended earlier gains, even as 24-hour trading volume declined sharply by about 25.15% to $64.4 billion, underscoring lower participation amid the year-end holiday period.
Highlights
- Market cap above $3T: The total crypto market value rose by ~1.35%, despite a significant drop in 24-hour trading volume (~25% to $64.4B).
- BTC and ETH gains: Bitcoin and Ethereum traded higher, with BTC near $89.4K and ETH above $3,000, reinforcing dominance.
- Fear sentiment persists: The Crypto Fear & Greed Index at 34 signals continued cautious sentiment among investors.
Among individual assets, Bitcoin (BTC) continued to outperform most peers, trading near $89,432, posting a 1.8% rise over 24 hours and a 0.9% gain over the past week. BTC’s resurgence helped maintain its dominance, accounting for nearly 58.9% of total market share. Ethereum (ETH) also saw steady gains, trading around $3,043, up 1.9% on the day and 2.6% over seven days, holding roughly 12.1% of market capitalization.
Despite these price improvements, market sentiment remains cautiously tilted toward risk aversion. The Crypto Fear & Greed Index stood at 34, a reading within the “Fear” range that suggests persistent uncertainty among investors. This level has remained relatively stable as the new year approaches, reflecting broader hesitation in capital allocation.
Dominance remains and altseason lags
Data from the Altcoin Season Index reinforced the risk-off backdrop, with a reading of 21 out of 100, placing conditions firmly in “Bitcoin Season.” Under this measure, smaller and mid-cap altcoins continue to trail BTC and ETH in performance, a trend consistent with risk-averse positioning.
Market breadth showed an alternating pattern of modest gains and declines, visible in crypto market cap charts showing green and red segments. Volatility increased notably around key dates in December, including the 10th and 26th, as unexpected price swings rippled across assets. Toward the end of the period, however, prices exhibited signs of gradual stabilization.
Outlook: Liquidity, sentiment, and 2026
Looking ahead, market participants may focus on volume dynamics and sentiment as drivers of short-term direction. Lower liquidity during holidays can amplify price moves, but a return to deeper trading activity in early 2026 could provide more decisive trends. Continued BTC strength and ETH resilience may also influence altcoin performance if risk sentiment improves.
We also reported about 2025 crypto year results: Institutional adoption and failed altseason.
- Forex
- Crypto