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The cryptocurrency market entered a bear market on December 25, 2025
Reasons are as follows:
1- Trading volume plummeted: Bitcoin on-chain trading volume hit a 19-month low
2- Liquidity dried up: The proportion of Bitcoin "hot supply"( traded within a week dropped from 5.9% to 2.8%, halving liquidity
3- Sentiment at a freezing point: Fear and Greed Index fell to 25, in the "Extreme Fear" zone
4- Technical breakdown: 75% of the top 100 cryptocurrencies fell below the 50-day and 200-day moving averages, only 24% traded above the 200-day SMA
Merry Christmas everyone. I opened a short position? Let’s see for a few days.