The cryptocurrency market is down slightly today, with the total cryptocurrency market capitalization down 0.8% over the past 24 hours, now standing at around $3.06 trillion. Despite this decline, the market managed to stay above the $3 trillion level. At the same time, the total crypto trading volume over the past day stands at around $87.6 billion.
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TLDR:
The crypto market cap fell 0.8% over the past 24 hours to around $3.06 trillion;
Most large-cap coins traded lower, although losses were modest in the top 10;
Cryptocurrency sentiment remains cautious, with the Fear and Greed Index at 31 in the fear zone;
US BTC spot ETFs saw $348.1 million in net outflows on December 31;
US ETH spot ETFs also saw outflows of $72.1 million;
Analysts expect Bitcoin’s gains in 2026 to be more stable, supported by Fed liquidity easing but tempered by high rates;
BTC is consolidating between around $85,000 and $88,000, with key support near $80,000 and resistance above $92,000;
ETH stabilizes above $2,900, with possible recovery above $3,100 and downside risk below $2,800;
A US federal judge has dismissed a crypto investor’s lawsuit against Mark Cuban and the Dallas Mavericks.
At the time of writing, price action among major assets is mixed, although the majority of large-cap coins are trading in the red on a 24-hour basis.
Bitcoin (BTC) is down about 1.2% over the past 24 hours, trading near $87,735.
Ethereum (ETH) showed relative strength compared to the broader market, falling just 0.1% to around $2,981, making it one of the smallest decliners among the top 10.
Solana (SOL) has fallen about 1% in the past 24 hours and is currently trading at $124.87, while BNB is down almost 0.9% at $859.65.
XRP (XRP) also fell about 1%, changing hands at $1.85. Dogecoin (DOGE) is among the worst performers in the top 10, sliding about 2.1% to $0.1205.
Tron (TRX) stands out for its relative resilience, posting a 0.7% gain over the past 24 hours to trade at $0.2849, making it one of the few large-cap assets in positive territory.
Outside of the majors, some smaller chips are experiencing sharp movements. Bitlight leads the gainers with an increase of more than 120%, while Collect on Fanable and Everlyn also posted strong double-digit gains.
On the other hand, Lighter is the biggest loser among trending tokens, down more than 8% on the day.
Meanwhile, several of the crypto industry’s most prominent figures saw their personal fortunes decline sharply in 2025, as a violent market reversal in October erased gains accrued earlier in the year.
Michael Saylor, executive chairman of Strategy, lost $2.6 billion over the past 12 months, reducing his net worth to $3.8 billion.
Bitcoin could benefit in 2026 as easing US monetary policy injects new liquidity into the markets, according to Bill Barhydt, CEO of Abra. He said early signs of further bond buying by the Federal Reserve and lower interest rates, which he described as “light quantitative easing,” are generally favorable for risk assets, including Bitcoin.
Beyond liquidity, Barhydt pointed to clearer U.S. regulation and growing institutional participation as favorable long-term factors. However, near-term expectations remain cautious, with CME data showing limited confidence in a rate cut in early 2026, suggesting that favorable conditions may take time to fully materialize.
Analysts generally expect gains to be more steady than explosive. Bitwise CIO Matt Hougan forecasts a long-term rise with lower volatility, while analyst Linh Tran said Bitcoin’s recent pullback reflects a shift toward fundamentals, macroeconomic conditions and institutional flows.
With rates still high and ETF flows uneven, Bitcoin may remain in an accumulation phase in early 2026 rather than entering a strong recovery.
At the time of writing, Bitcoin is trading near $87,789, posting a modest daily gain after stabilizing towards the end of December. The chart shows that BTC fell sharply from October highs near $126,000 before finding support in the $85,000-$88,000 range, where price action has since compressed into a narrower band.
Over the past few weeks, Bitcoin has largely moved sideways, suggesting a consolidation phase after the sharp correction. If downward pressure returns, a break below the $85,000 area could expose BTC to further losses towards the $81,000-$80,000 area, which presents itself as the next major support.
On the upside, a sustained move above $92,000 would be an early sign of new momentum, potentially opening the door to $98,000 and higher resistance levels near $103,000.
Ethereum is currently changing hands around $2,984, slightly outperforming Bitcoin on the day. The chart shows ETH steadily declining from September highs above $4,600 before forming a base near the $2,800-$2,900 region. Recent price action suggests that ETH is attempting to stabilize after repeated testing of this support zone.
In the short term, holding above $2,900 keeps Ethereum in a neutral to stable position. A close above the $3,100-$3,200 range could signal a recovery phase, with potential upside targets near $3,400 and $3,600. Conversely, a drop below $2,800 would weaken the structure and could push ETH towards the next support around $2,600, where buyers previously stepped in during the November sell-off.
Meanwhile, crypto market sentiment remains cautious as the Crypto Fear and Greed Index stands at 31, keeping the market firmly in the fear zone.
The figure shows little change from recent sessions, signaling continued uncertainty among investors, with traders largely waiting for clearer macroeconomic or political signals before taking on additional risks.
U.S. Bitcoin spot ETFs closed the final trading day of 2025 in the red, with data showing net outflows of $348.1 million on Dec. 31, according to SoSoValue. This decline occurred despite the market remaining active, with total daily trading volume reaching $2.83 billion.
Outflows were led by BlackRock’s IBIT, which saw $99.05 million leave the fund, followed by Fidelity’s FBTC with $46.58 million in net outflows. Grayscale’s GBTC also continued to bleed assets, seeing $69.09 million in outflows, while Ark & 21Shares’ ARKB saw $76.53 million in net redemptions.
Despite the daily decline, cumulative net inflows into US BTC spot ETFs remain strong at $56.61 billion. The total net assets of all products are $113.29 billion, which represents approximately 6.47% of the total market capitalization of Bitcoin.
US Ethereum spot ETFs also ended the year under pressure, posting net outflows of $72.06 million on December 31. Trading activity remained subdued, with a total value of $808.1 million traded during the session.
BlackRock’s ETHA led the outflows, seeing $21.51 million leave the fund, while Grayscale’s ETH product saw $31.98 million in net redemptions. Fidelity’s FETH also saw smaller outflows of $2.22 million, reflecting widespread caution among issuers.
Cumulative net inflows into US ETH spot ETFs remain positive at $12.33 billion. Total net assets stand at $17.95 billion, representing approximately 5% of Ethereum’s market capitalization.
Meanwhile, a US federal judge has dismissed a crypto investor’s lawsuit against Mark Cuban and the Dallas Mavericks, ending a case that attempted to blame the collapse of Voyager Digital on celebrity-style promotion and team marketing.
Judge Roy K. Altman of the U.S. District Court for the Southern District of Florida said in an order dated Friday that the plaintiffs failed to establish personal jurisdiction over Cuban and the team, and that the court did not have a sufficient nexus between Florida and the purported promotion.
Read original story Why is crypto down today? – January 1, 2026 by Amin Ayan on Cryptonews.com
