As 2025 winds down, the world of cryptocurrency is anything but calm. Bitcoin, the bellwether of digital assets, has endured its steepest quarterly drop in seven years, while Ethereum and a new wave of altcoin projects like PEPENODE are stirring both hope and anxiety among investors. With less than ten days left in the year, the market is at a crossroads—caught between fresh lows, cautious optimism, and the ever-present specter of volatility.
According to data compiled by Coinglass and reported by BeInCrypto, Bitcoin has fallen 22.54% this quarter, marking its deepest plunge since 2018. The slide began in October, with a 3.69% drop, then accelerated to a staggering 17.67% in November. By December 23, Bitcoin had shed another 2.31%, trading at $87,183—lower than where it started the year. The relentless selling pressure shaved another 1.8% off its value in the 24 hours leading up to December 23.
Ray Youssef, CEO of NoOnes, described the current market as “trapped in a narrowing range,” with Bitcoin bulls clinging to the $85,000 support level but unable to break through the formidable resistance at $93,000. “Until Bitcoin truly breaks above $93,000 or loses support at $85,000, BTC is likely to continue moving sideways and remain volatile through the end of the year,” Youssef told BeInCrypto.
Options market data reflects this stalemate. Put options are piling up around $85,000, while calls cluster between $100,000 and $120,000. Youssef pointed out that the upcoming expiration of options contracts, the looming possibility of a U.S. government shutdown, and a $6.8 billion liquidity injection from the Federal Reserve could all spark short-term volatility. But for now, the path forward remains murky.
Despite a more than 30% drop from its October peak, U.S. spot Bitcoin exchange-traded funds (ETFs) have only seen their holdings decline by less than 5%. This suggests that large institutional players are holding firm, even as retail investors—especially those using leverage and short-term strategies—are driving much of the selling. Youssef warned that if Bitcoin falls below $85,000, a deeper correction toward the $73,000 demand zone could become likely. “If this support breaks, institutions may have to make decisions as the price approaches their average cost around $80,000. To regain bullish momentum and aim for previous highs, the market must reclaim the $94,000 area,” he predicted.
Looking ahead, Farzam Ehsani, CEO of VALR, called the end of 2025 “the most challenging period for crypto assets in recent years,” citing seasonal weakness, persistent overbought conditions, and a renewed investor preference for safer assets like U.S. government bonds. “Market liquidity remains tight, and institutions are increasingly adopting a wait-and-see approach, prioritizing capital preservation,” Ehsani observed.
Ehsani sees two plausible explanations for the current correction. One is that a major player—be it a fund, bank, or even a country—could be preparing for a big purchase, in which case the current weakness might be engineered and could reverse swiftly. Alternatively, the market could simply be exhausted, with the Federal Reserve’s policies and mounting U.S. government debt sapping enthusiasm for high-risk assets. In that case, “the crypto market may need more than a year to recover,” Ehsani cautioned.
Despite the gloom, Ehsani projects that Bitcoin could set a new all-time high in the first half of 2026, potentially reaching the $100,000 to $120,000 range by the second quarter. “Historically, the early months of the year aren’t very dynamic: traders tend to wait and see, while the market looks for new growth drivers and opportunities,” he noted. The key factors for 2026, according to Ehsani, will be institutional adoption, regulatory policy in the U.S. and globally, and the broader macroeconomic climate.
Meanwhile, Ethereum is showing signs of renewed energy. On December 22, the price of ETH broke back above $3,000, accompanied by a 100% surge in trading volume, as reported by Coinspeaker Indonesia. Data from CryptoQuant revealed that the 30-day average taker sell volume for Ethereum had dropped to $6.3 billion—the lowest since May 2025—indicating that fewer traders are panic-selling. Bitmine, a company owned by Thomas Lee, added fuel to the fire by purchasing 13,412 ETH worth over $40 million on the same day, according to Lookonchain.
Ethereum’s Net Unrealized Profit and Loss (NUPL) indicator stands at a positive 0.22, suggesting most holders are still in profit, though not exuberantly so. Binance data shows large outflows of ETH, typically a sign that short-term selling pressure is easing. Many ETH holders are moving their assets into private wallets, even when profit-taking is an option—a sign of growing conviction to hold longer.
Yet, caution remains the order of the day. In the week prior to December 22, ETH dipped below $2,800, and spot ETH ETFs saw net outflows of $644 million, with none of the nine observed funds recording inflows. Popular analyst CyrilXBT warned that the $2,700–$3,000 support zone is still fragile and that failure to hold this range could trigger a rapid decline. However, if ETH can break through the $3,200–$3,400 band, “the technical pattern will look much healthier.” At the time of writing, ETH traded at $3,031, up around 2% in 24 hours, but still 38% below its August 2025 peak of $4,953.
BitMine Immersion (BMNR) has been making headlines as well. The Nevada-based treasury company acquired 98,852 ETH in the past week, pushing its total holdings to 4.06 million ETH—about 3.37% of the circulating supply. “This is a remarkable milestone achieved in just 5.5 months,” said BitMine chairman Thomas Lee, referencing the company’s shift to an Ethereum treasury strategy in July 2025. BitMine now stands as the largest corporate holder of ETH, surpassing rivals like SharpLink Gaming and The Ether Machine.
However, not all forecasts are rosy. Fundstrat, a research firm where Lee also serves as head of research, released a cautious outlook for ETH, predicting it could fall to $1,800–$2,000 in the first half of 2026 before recovering later in the year. This stands in stark contrast to Lee’s own bullish stance, which sees ETH as “deeply undervalued” at $3,000 and poised for record highs as soon as January 2026. The divergence, explained by Fundstrat analyst Sean Farrell, comes down to different client bases and investment horizons—Fundstrat’s guidance targets large money managers with substantial crypto allocations, while Lee’s advice is aimed at those with smaller, more focused portfolios.
Technically, Ethereum faces resistance near $3,100 as it tries to build on gains above both the 20-day and 50-day Exponential Moving Averages. A break above this level could see ETH test the upper boundary of a symmetrical triangle and face critical resistance around $3,470. Support, meanwhile, can be found at the lower boundary of the triangle if ETH is rejected at $3,100. Both the Relative Strength Index and Stochastic Oscillator are hovering near neutral, suggesting that a decisive move in either direction could quickly accelerate momentum.
In the midst of this market churn, new projects are also vying for attention. PEPENODE, a meme coin with a mine-to-earn model, has raised over $2.3 million in presale funds as of December 22. Its tokenomics feature a 70% burn rate on node upgrade fees and staking yields above 547% APY. With less than 17 days left in its presale, PEPENODE is positioning itself as a contender in the crowded crypto landscape, offering both playful gamification and aggressive deflationary mechanics.
As 2025 draws to a close, crypto markets are caught between uncertainty and anticipation. Whether Bitcoin can reclaim its highs, Ethereum can break through resistance, or new projects like PEPENODE can capture the imagination of investors—all remain open questions. But one thing is clear: the coming year promises no shortage of drama for digital assets.
