Good evening everyone, I hope you all benefit, my friends.
The most significant political and economic developments affecting the crypto market with recommendations.
The current scene can be summarized in the following key points:
· American policy: Trump's administration supports the sector by appointing a digital currency advisor at the White House and committing to establish a clear legal framework, which enhances confidence in the regulatory future.
· Regulatory environment: Increasing institutional adoption with U.S. Bitcoin ETF funds recording record trading volumes (such as $7.1 billion in a single day), which gives the market greater credibility and attractiveness to traditional investors.
· Global monetary policy: A slowdown in the pace of quantitative easing is expected from the U.S. Federal Reserve, as December interest rate cut expectations have diminished. This increases pressure on high-risk assets like cryptocurrencies, especially meme coin categories.
· Geopolitical tensions: Regional crises (such as those in the Middle East) are expected to affect prices. Historically, investors have turned to Bitcoin as a hedge in times of instability, although it remains a volatile response.
📊 Current market health (December 2025)
The market is facing a mix of short-term pressures and long-term optimism:
· Key price level: Bitcoin is currently stabilizing around $86,189, with critical support at $80,400. Continuous closure below this level could open the door for further declines.
· Investor sentiment: There is ongoing selling by large holders ("whales") and long-term investors, putting pressure on prices and preventing a strong short-term recovery.
· Sector performance: The Layer 2 sector (such as Arbitrum and Optimism networks) has recently outperformed the overall market, which may indicate a shift in capital interest towards infrastructure projects and technical innovation.
· Predictions for 2025: Despite short-term challenges, some analyses predict the average Bitcoin price could reach around $110,548 by December 2025, supported by the delayed impact of mining reward reductions and ongoing institutional flows.
🎯 Recommendations for traders and investors
· Risk management first: Reduce leverage usage, and use stop-loss orders, especially amidst ongoing whale selling.
· Watch Bitcoin's critical support: The $80,400 level is an important line of defense. Caution is recommended until the market direction is clear.
· Focus on quality: In a difficult market, prioritize projects with strong technical foundations and clear use cases.
· Think long: Use downturns as opportunities for gradual accumulation of assets like Bitcoin and Ethereum within a diversified portfolio.
