Flipster Crypto Weekly (December 26)

Crypto drifts into year-end range as liquidity thins and capital stays defensive

December 26, 2025

Crypto markets moved sideways into the Christmas break, with price action defined less by conviction and more by thin liquidity and selective headline reactions.

BTC drifted from the high-$88K area early in the week to ~$87K by Friday, while ETH slipped from just above $3K to ~$2.9K. Bitcoin dominance crept higher toward 60%, reinforcing a defensive tape where capital stayed concentrated in majors rather than rotating into higher beta.

Across sessions, volatility remained compressed. Weekend trading was muted, Asia consistently faded intraday strength, and U.S. hours accounted for most directional attempts; none of which delivered follow-through.

Macro: Data Arrives, But Timing Blunts Impact

U.S. GDP and PCE data confirmed a resilient growth picture with inflation continuing to cool at the margin, while minutes from the Bank of Japan reinforced its gradual, cautious approach to policy normalization. Under normal liquidity conditions, these releases might have driven clearer positioning. Instead, markets largely absorbed the data without repricing risk meaningfully.

With desks lightly staffed and year-end positioning largely set, macro signals registered more as context than catalysts.

Industry & Capital: Infrastructure Still Attracts Size

While prices drifted, capital formation remained active beneath the surface.

HashKey Capital announced a $250M first close for its fourth crypto fund, targeting a $500M final size. The fund is positioned to invest across blockchain infrastructure and real-world applications, underscoring continued institutional appetite for long-term crypto exposure despite near-term price stagnation.

Elsewhere, Northern Data completed the sale of its bitcoin mining arm to entities run by Tether-affiliated executives, highlighting ongoing consolidation and vertical realignment across mining and infrastructure businesses.

Corporate and treasury activity also stayed selective. Ethereum-focused vehicles continued to accumulate on weakness earlier in the week, though flows slowed as ETH slipped below $3K again.

Headlines: Quiet Tape, Active Newsflow

Despite muted price action, headlines continued to tick.

MoMA added CryptoPunks and Chromie Squiggles to its permanent collection, reinforcing the long-term cultural foothold of early NFT collections even as speculative interest remains subdued.

On the product side, Lighter moved 25% of its $LIT token supply, fueling speculation around a potential airdrop, while Tether-backed initiatives continued to reshape ownership across adjacent crypto infrastructure.

At the same time, security concerns resurfaced after Trust Wallet users reported unauthorized fund outflows, serving as a reminder that operational risk remains a live variable even during quiet markets.

Market Structure: Rangebound, Thin, and Reactive

Structurally, the market remains coiled rather than resolved.

BTC continues to oscillate within a well-defined range, failing to reclaim prior resistance but also finding consistent bids on dips. ETH’s inability to hold above $3K has kept sentiment cautious, with dominance staying elevated and alt participation limited.

Liquidity conditions are the defining feature. With order books thin and positioning light, even modest flows can move price; but those moves have struggled to persist.

Outlook

As markets head into the final days of the year, the setup remains one of compression rather than breakout.

Macro clarity is improving gradually, institutional infrastructure investment continues, and corporate participation has not meaningfully retreated. Yet without a return of liquidity and fresh risk appetite, price is likely to remain headline-driven and tactical.

For now, traders are waiting. The next sustained move will likely come when volume returns, not before.

Trade accordingly.

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