The cryptocurrency market showed renewed strength during the holiday period, with Bitcoin, Ethereum, and XRP posting notable gains despite thin liquidity. As of December 29, 2025, the total crypto market cap hovered around $3.03 trillion, while Bitcoin reclaimed levels above $90,000 and Ether pushed past $3,000.
This uptick coincides with positive geopolitical developments, including U.S. President Trump’s efforts to broker peace talks between Russia and Ukraine—viewed by some analysts as a risk-on catalyst.
Bitcoin Leads the Recovery Above $90,000
Bitcoin surged over 2% in Monday’s Asian session, breaking back above $90,000 and peaking near $90,200 (up 3.1% intraday). The move followed a period of consolidation, with traders citing easing selling pressure and improving technical structure.
Sebastian Bea, CIO at ReserveOne Inc., attributed part of the rally to short-term retail traders increasing futures positions.
On the daily chart, Bitcoin trades within a symmetrical triangle. A decisive close above the 50-day EMA at $92,202 could confirm a breakout, targeting $96,846 (November 15 high) and the 200-day EMA near $101,029.
A drop below the $86,250 trendline support would signal bearish continuation.
Bitcoin futures funding rates hit their highest since October 18, reflecting growing long bias, though open interest remains below October peaks.
Ethereum Reclaims $3,000, XRP Nears Key Resistance
Ethereum climbed over 3%, marking its fourth straight day of gains and solidly recapturing $3,000. XRP added nearly 2%, testing resistance near $1.94.
The synchronized moves suggest improving risk appetite, with altcoins benefiting from Bitcoin’s leadership.
Precious Metals Rally Adds Pressure on Crypto Sentiment
Gold and silver reached fresh all-time highs last week, with gold up ~70% and silver ~150–170% YTD—highlighting their strength as safe-haven assets.
This outperformance has weighed on crypto psychology, prompting some investors to question Bitcoin’s “digital gold” narrative.
Peter Schiff publicly challenged: “If Bitcoin can’t rally with tech stocks or gold/silver, it may never recover.”
Louis Navellier of Navellier & Associates recommended shifting to gold, citing lower volatility, central bank demand, and superior liquidity.
Institutional and Macro Support Remains Intact
Despite short-term weakness, underlying fundamentals stay supportive. Institutional adoption continues, with regulatory clarity and corporate treasuries providing structural demand.
Fundstrat’s Sean Farrell views current selling as typical year-end tax-loss harvesting, expecting January inflows to spark recovery—consistent with historical patterns where December laggards rebound early the following year.
10X Research highlighted favorable conditions: 30% drawdown, multi-month downtrend, and reset technical indicators signaling potential short-term relief.
Outlook: Risk-On Recovery or Continued Caution?
The holiday rebound reflects easing macro fears and geopolitical optimism, but sustainability depends on post-holiday volume and broader risk appetite.
A sustained Bitcoin push above $92,000–$94,000 could reinforce bullish momentum into 2026, while failure to hold $86,000 risks renewed downside.
With precious metals dominating 2025 safe-haven flows, crypto’s ability to recapture leadership will hinge on liquidity return and institutional conviction in the new year.
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