Crypto Market Sees Modest Gains Amid Holiday Trading and ETF Inflows on December 31, 2025
The total cryptocurrency market capitalization increased by 0.5% over 24 hours to about $3.08 trillion, with trading volume around $92.2 billion, reflecting subdued activity amid holiday liquidity constraints. Bitcoin (BTC) traded near $88,575, up 0.7% on the day and showing approximately a 2% gain over the week, while Ethereum (ETH) hovered around $2,973, slightly down 0.3% on the day but also posting a similar weekly gain.
Bitcoin remains range-bound near $88,000 following a $19 billion leverage unwind in October. US spot Bitcoin ETFs recorded significant net inflows totaling $355.02 million, lifting cumulative inflows to $56.96 billion. The largest contributors included BlackRock IBIT with $143.75 million, Fidelity FBTC with $78.59 million, and Ark/21Shares ARKB with $109.56 million.
US spot Ether ETFs also saw positive net inflows of $67.84 million, taking cumulative inflows to $12.40 billion. Grayscale ETHE led with $50.19 million in inflows, followed by an ETH fund with $13.95 million and Fidelity with $3.70 million. Ether ETF trading volume stood at $1.10 billion with net assets valued at $17.99 billion, representing about 5% of the Ethereum market capitalization.
Investor sentiment remains cautious, with the Crypto Fear and Greed Index at 32 signaling fear. Despite increased crypto exposure by global family offices during 2025, volatility and weak recent performance cast uncertainty on the outlook for 2026.
In notable transactions, Cypherpunk Technologies acquired 56,418.09 ZEC for roughly $29 million, raising its holdings to 290,062 ZEC, which accounts for approximately 1.76% of the circulating supply.
Key technical levels indicate Bitcoin support near $88,000 to $88,500; maintaining this range could lead to test of $90,000 and potentially $92,000. A break below $88,000 may target $85,000 and a demand zone between $82,000 and $83,000. Ethereum's pivotal range lies around $2,950 to $3,000, with potential upward moves to $3,200 and $3,400 if momentum improves, otherwise downside risks remain.
Liquidity conditions were constrained by the holiday period, affecting Asian markets while US rate expectations remain anchored ahead of the Federal Reserve's January meeting.
