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Weekly crypto update : market cap drops to $2.99T, BTC slides to $88K, token unlocks pressure alts, and volatility remains elevated
Author: Chirag Sharma
Published On: Sun, 21 Dec 2025 18:56:36 GMT
The week of December 15 to 21, 2025 unfolded with renewed downside pressure across crypto markets, driven by macro uncertainty and heavy token supply events. Total crypto market capitalization slipped from around $3.1 trillion at the start of the week to approximately $2.99 trillion by week’s end, marking a ~3.5% weekly decline. Risk appetite weakened as global markets leaned defensive. Trading activity cooled into the weekend, with daily volumes easing toward $150 billion, signaling reduced conviction and a wait-and-watch stance from both retail and institutional participants. Let us dive into key movers, highlights and takeaway of this weekly crypto update.
Bitcoin (BTC) remained under pressure throughout the week. BTC opened near $89,600 and drifted lower to close around $88,000, posting a ~1.8% weekly decline. Its market cap contracted from roughly $1.77 trillion to $1.74 trillion, reflecting persistent risk-off sentiment.
Ethereum (ETH) mirrored BTC’s weakness. ETH fell from approximately $3,000 to $2,900, down ~3.3%, as optimism around Layer 2 scaling cooled amid broader market softness. Despite continued development activity, price action remained tied closely to macro flows rather than fundamentals.
Solana (SOL) saw heavier selling, sliding ~5% from $200 to $190, pressured by reports of network congestion and rotation away from higher-beta altcoins. In contrast, Binance Coin (BNB) stood out as a relative outperformer, gaining ~2.5% on exchange-related ecosystem developments. XRP lagged, falling ~6.7%, amid renewed regulatory uncertainty.
Token unlocks were a dominant headwind this week. Notable releases added supply pressure across DeFi and infrastructure tokens, amplifying downside momentum. These supply-side events reinforced a defensive tone, with capital rotating selectively rather than broadly exiting the market.
Despite the drawdown, pockets of strength emerged in revenue-generating and compliance-aligned narratives, suggesting investors are increasingly discriminating rather than indiscriminately selling.
Macroeconomic developments reinforced caution. U.S. CPI data pointed to persistent inflation, reducing expectations for aggressive rate cuts and weighing on risk assets. Adding to global tightening signals, the Bank of Japan raised rates to a multi-decade high, strengthening the yen and indirectly pressuring dollar-denominated assets like BTC.
China’s liquidity injections provided some offset, but not enough to reverse sentiment. Meanwhile, isolated security incidents and regulatory headlines kept volatility elevated, underscoring crypto’s sensitivity to both on-chain dynamics and global policy shifts.
Looking ahead, markets remain sensitive to liquidity signals and macro data. Any stabilization in inflation expectations or renewed liquidity injections could spark short-term relief, particularly in oversold segments. However, surprise data or further supply events may extend volatility.
BTC holding the $85K–$88K zone remains a key level to watch. With sentiment still fragile, selective positioning and risk management remain essential as the year-end approaches.
Crypto continues to digest macro pressure and internal supply shocks. While headline prices remain under stress, underlying rotation suggests capital is not leaving the space entirely. This phase appears less like capitulation and more like recalibration before the next directional move.
