Crypto Market

BTC and ETH Market Insight

As the year winds down, the cryptocurrency market entered a phase of cautious consolidation during the week of December 8-14, 2025. The total market capitalization hovered around $3.1 trillion, reflecting a modest 0.5% decline amid fading enthusiasm for Federal Reserve rate cuts and looming macroeconomic data releases. Bitcoin opened the week on December 8 at approximately $90,400, buoyed by lingering optimism from prior Fed signals. However, sentiment soured quickly on December 12. By mid-week, BTC had eroded gains, dipping to $89,500 on December 12 following the Fed's 25-basis-point rate cut announcement, which fell short of hawkish expectations for deeper easing. The weekend exacerbated the slide, with BTC closing at $88,164 on December 14—a 2.5% weekly loss and roughly 30% off its October all-time high near $126,000.

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The week opened with relative stability, as Bitcoin spot prices hovered around $91K before facing downward pressure mid-period, dipping to intraday lows near $89.5K, followed by a modest recovery to close around $90.5K. Ethereum followed suit with amplified swings, shedding up to 5.8% in the final sessions. Implied volatility (IV) remained compressed overall, with BTC's 1-week ATM IV settling near 43% and ETH's around 65. Put skew persisted with a mild downside bias. Despite solid ETF inflows supporting fundamentals, institutional hedging and low liquidity amplified the choppy momentum, capping upside breakouts.

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Macro

The major benchmarks finished the week mixed after the Fed’s third consecutive rate cut decision: the DJIA rose +1.0%, the S&P 500 shed 0.6%, and the Nasdaq lost 1.6%. The Chinese stock market finished the week lower as the investors tended to take profit by the year: the Shanghai Composite Index lost 0.34%, the CSI 300 shed 0.08% and the Hang Seng index lost 0.42%.