Contrary to the pattern of recent years, when the Christmas and New Year period often brought a bullish rally, investor activity is currently subdued. Market participants are shifting their focus toward technology stocks and precious metals, both of which are actively setting new all-time highs. Demand for gold is supported by concerns over excessive U.S. dollar weakness and accelerating inflation, while silver benefits from rising demand from the defense industry.
Analysts are attempting to assess the near-term outlook, which many view as negative. The crypto market began 2025 with a correction, followed by a sharp rally during which BTC reached record highs near 126,000.00. However, bearish momentum resumed as early as September, and leading digital assets have since given back all of their gains. Economists at financial conglomerate Barclays believe spot market volumes will continue to decline due to the lack of strong growth catalysts such as the launch of fundamentally new exchange-traded products or the re-election of Donald Trump as U.S. president.
The current Republican administration maintains a noticeably more accommodative stance toward the sector, seeking to organize rather than restrict the activities of digital companies. However, investors have largely adapted to this environment, and it no longer generates significant enthusiasm. Moreover, official rhetoric has become more restrained compared with the pre-election period: cryptocurrencies and blockchain technologies were not even mentioned in the U.S. National Security Strategy, which instead highlighted artificial intelligence (AI) and quantum computing as strategic priorities. Policymakers have also ruled out direct purchases of major crypto assets for strategic reserves, stating that such reserves would be built through other means, including asset confiscations.
At the same time, Barclays maintains that the market’s long-term outlook remains positive. The expected adoption of the CLARITY Act, which would clearly define the boundary between digital commodities and securities, could eventually stimulate interest from large institutional players, even if the effect is not immediate. In addition, monetary factors could provide some support over the course of the year, especially if the U.S. Federal Reserve comes under the leadership of White House economic adviser Kevin Hassett, a close ally of Donald Trump. In that scenario, the regulator could move toward monetary easing while downplaying inflation risks, putting additional pressure on the U.S. dollar relative to alternative assets.
Overall, conditions in the sector remain challenging and investor sentiment cautious. Against this backdrop, most major digital assets may continue to consolidate or resume a downward move in the coming week.