Crypto Clings to $3T While the Uptrend Break Raises Red Flags

Crypto market capitalization fell 0.2% in 24 hours and 2.2% in a week to $3.06 trillion. Overnight, the market resisted the bears' challenge of $3.0T, a level the bulls have blocked for 10 days. The change from rising trend to horizontal support is not a good sign for purchasers.

At 16, the sentiment index is at its lowest in over three weeks. Another sign of crypto market cyclical weakness is this return. This protracted market panic is similar to what we witnessed at the end of 2021 without a clear catalyst, as in April.

Bitcoin fell below $87.5K early Monday but is now near $90K. The upward trend since November has been halted by selling pressure since last week. Returning to $81K is the formal baseline. Bulls expect for a longer consolidation and expansion rather than an abrupt sell-off.

Net inflows into spot BTC ETFs reached $286.6 million, the most in seven weeks, according to SoSoValue. Since Bitcoin ETF approval in January 2024, inflows have reached $57.90 billion. The week's net inflows into US spot Ethereum ETFs were $208.9 million, bringing the total to $12.88 billion since July 2024. The recently established US spot Solana ETFs received $36 million for the week and $675 million in total for seven weeks. Following the November 14 US launch of spot XRP ETFs, inflows have exceeded $974 million for almost a month.

According to most Kalshi prediction platform users, Bitcoin will end the year below $100,000, with only 23% of users expecting it to exceed it.

According to Glassnode, large organizations, governments, centralised exchanges, and investment institutions hold 29.8% of bitcoins in circulation.
Vanguard considers the first cryptocurrency a speculative collectible rather than a working asset. Bitcoin lacks income, compound interest, and cash flow.

International rating agency Moody's has announced fiat-pegged stablecoin credit rating standards. Some experts think Tether's USDT is at risk. S&P Global lowered USDT's stability rating to fifth-lowest in November.

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