October and November have already shaken up the crypto market. Between shattered hopes and brutal withdrawals, these two months blew hot and especially cold. And now December is not smooth sailing: a new wave of volatility is hitting investors, already on edge. The season of giving doesn't seem to have found its way to digital wallets yet.
In brief
- The crypto market has lost 33% since October, with a capitalization of $2.93 trillion
- Bitcoin resists macroeconomic pressure and climbs 2.3% after rate hike.
- Altcoins are falling sharply, with some seeing losses of up to 20% in just a few days.
- Massive $457M inflow into Bitcoin ETFs reveals growing interest from institutional investors.
Crypto market under tension: bitcoin holds on, but the others let go
The overall capitalization of the crypto market has just fallen below $3,000 billion, more precisely to $2,930 billion, its lowest level since April. Since its October peak estimated at $4.4 trillion, more than 33% of value has evaporated. Over the same period, BTC has lost ground, but remains more resilient than altcoins. This Thursday, bitcoin was trading around $88,200, while other cryptos sank faster.
XRP, Solana and even Cardano recorded marked declines, sometimes close to 20% over the week. In an alarmist tweet, Michaël van de Poppe evokes a “possible capitulation” on altcoins. According to him, a short collapse could precede an express rebound, but caution is required.
THE macroeconomic climate weighs also heavy. The Bank of Japan announced an increase in its rates to 0.75%, an event closely scrutinized by global markets. While this monetary tightening is worrying, bitcoin nevertheless increased by 2.3% after the announcement. A sign of strength? Maybe. But the excitement remains palpable.
Fear is omnipresent on social networks. As Santiment indicates in his analysis of December 13 :
The comments mostly reflect fear after Bitcoin rebounded to $90.2K yesterday, before quickly falling back to $84.8K. Bearish terms like #selling, #sold, #bearish or #lower are significantly more common on X, Reddit and Telegram.
BTC attracts capital while altcoins are still searching
Beyond the ambient stress, an unexpected dynamic is emerging: Bitcoin ETFs are recording a significant inflow of capital. In just a few days, more than $457 million was injected into these regulated investment vehicles. This renewed institutional interest suggests that certain players are already banking on an upcoming recovery of BTC.
Giants like Fidelity or BlackRock, far from being cautious, are strengthening their positions despite the volatility. This trend contrasts with the outflows observed on other products backed by Ethereum or Solana. Altcoins, still too exposed to risk, are struggling to reassure traditional investors.
On the side of individual traders, contrary signals are emerging. For some, widespread fear is just the right time to enter. Santiment points out: prices tend to move contrary to social consensus. An overly pessimistic crowd would therefore be an imminent sign of accumulation for the most patient.
Hot points to remember about the current situation
- Overall crypto capitalization fell to $2.93 trillion, its lowest since April;
- Bitcoin price stabilizes around $88,200 despite turbulence;
- Altcoins record up to -20% decline in a few days;
- An influx of $457M entered Bitcoin ETFs recently;
- Social networks display a feeling of extreme fear, often a contrarian signal.
But not everything hangs on bitcoin. XRP ETFs have just crossed the billion-dollar milestone in cumulative value. A strong signal, which shows that interest in alternative cryptos is also weathering the storm. Enough to nourish, even in the current uncertainty, the hope of a broader rebound for the entire crypto market.
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