In the final trading days of the fourth quarter, conditions remain tense. Overnight into Monday, Bitcoin slipped below the $88,000 mark, while Ethereum briefly broke down through the $3,000 level. Trading is taking place amid low liquidity and persistently negative sentiment, increasing volatility and adding pressure to prices.
Market sentiment indicators confirm the dominance of pessimism. The Fear & Greed Index remains firmly in the “extreme fear” zone, standing at just 25 points. The last time the indicator registered neutral readings was back in late October, after which investor sentiment deteriorated noticeably.
One of the key reasons behind the weak performance is the monetary policy stance of major central banks, which has proven less accommodative than markets had anticipated. The U.S. Federal Reserve is widely expected to pause rate cuts in January, while the Bank of Japan unexpectedly raised its benchmark rate to 0.75% last week, reinforcing the global tightening of financial conditions.
Additional pressure has come from a decline in regulatory optimism within the crypto industry. U.S. Senator Cynthia Lummis, one of the most influential advocates of crypto legislation in Congress, announced her intention to leave politics in 2027. Since taking office in January 2021, she has been regarded as a key figure promoting Bitcoin and blockchain initiatives at the federal level.
Institutional investors have also failed to provide support. According to Farside Investors, spot Bitcoin ETFs recorded net outflows of around $497 million over the past week, while Ethereum funds saw even larger losses of approximately $644 million. These figures highlight waning appetite for risk assets even among large market participants.
The only relative bright spot remains the actions of the largest Bitcoin treasury company, MicroStrategy. Its founder, Michael Saylor, hinted in a post on X at another BTC purchase. Over the long term, he continues to hold an extremely bullish outlook, projecting Bitcoin prices in the multi-million-dollar range and predicting “massive deflation” if the network becomes quantum-resistant.
Nevertheless, there is little reason to expect a sustainable market reversal in the short term. The holiday period, marked by low liquidity, could trigger sharp price swings in either direction but is unlikely to establish a clear trend. For more on why 2026 could become a turning point for Bitcoin and the broader crypto market, see our separate feature: “Bitcoin Price Forecast for 2030: Growth Scenarios and Post-Correction Risks.”