Year-end is here. Have you also fallen for the Christmas market trap? Opening the candlestick chart, Bitcoin and mainstream coins are just stagnating there, with such small fluctuations that you can't even do T. The supposed year-end surge has painfully turned into a "stalling market." This seems abrupt on the surface, but there is a deeper logic behind it—serious market liquidity shortage.

Having been in this industry for 6 years, I've seen many market conditions, but this year's wave is particularly heartbreaking. The so-called lack of liquidity, simply put, means there isn't enough active money in the market, trading depth has severely shrunk, and even small funds can't move the market. This is not a coincidence but has specific reasons.

The first reason is that institutions are "self-rescuing" at year-end. Every December, major institutions conduct year-end settlements—tidying up their books for the year, locking in profits, and avoiding surprises at the last minute. What does this mean? It means the wealthiest and most active buyers in the market disappear directly, and trading volume naturally becomes sluggish. This is the main source of liquidity exhaustion.

The second reason is that retail investors are already exhausted. The market was volatile in the first half of the year, and in the second half, it repeatedly stagnated, causing many retail investors to either be trapped at high levels or simply lie flat and do nothing. No buying or selling, no activity, so the market naturally can't move out. This "stalling mentality," while seemingly negative, is also a form of self-preservation—to avoid chasing highs and selling lows, and instead stay calm and observe.

The third reason is the cyclical "year-cross panic." Institutions and big players generally view the year-end window with pessimism and are reluctant to hold high-risk assets during this period. They are waiting, waiting for new signals from the policy front at the start of 2026.

So what should we do in 2026? Instead of worrying about missed opportunities, it's better to plan ahead. Liquidity will eventually return; the key is to seize the rebound moment. Bitcoin, as the market's barometer, once institutions re-enter, the chain reaction will quickly spread throughout the ecosystem. At that time, those high-quality projects and coins with better liquidity, which were wrongly killed or overlooked, will be the real opportunities for catching up.

In summary, the failure of the Christmas market is not worth regret. Instead, it serves as a reminder—that in an environment of liquidity exhaustion, the smartest approach is to stay calm, observe the situation, and prepare for the next market rally.