Digital asset treasuries (DAT), altcoin ETFs and seasonal strength are unable to hold prices, with some DAT now at risk of a sell-off as market capitalization falls below NAV.
October saw a liquidation wave of $19 billion, draining liquidity, and the subsequent recovery mainly came from closing short positions rather than new demand.
With ETF enthusiasm waning, DAT faces pressure and rate cuts do not boost prices, as crypto enters the new year without clear upward momentum — although a sell-off could create opportunities in the future.
Bitcoin has fallen 23% since the beginning of October, marking the worst Q4 in 7 years if current levels persist. Altcoin ETFs attracted significant capital but token prices continued to plummet: SOL down 35%, XRP nearly 20%.
DATs, which promised to be stable buying forces, may now turn into forced sellers, threatening an already fragile market. The liquidation wave and lack of liquidity indicate the market remains vulnerable, no different from previous sharp volatility.
Conclusion: 2026 opens a year of lacking clear catalysts for price increases, and buying opportunities may emerge as DATs gradually shrink or divest.
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