Market Consolidation: The crypto market has been in a consolidation phase for the past few weeks, failing to establish a clear short-term direction after the early December crash.
Persistent Fear: The Crypto Fear & Greed Index remains deep in the "Extreme Fear" territory, reflecting deep pessimism among investors.
Macroeconomic Correlation: The market is still highly correlated with traditional risk assets like US equities. Concerns over potential global regulations and a jump in global interest rates were cited as key reasons for the recent volatility.
Institutional Activity: Despite short-term selling pressure, analysts note that institutional interest in Bitcoin remains strong, with expectations of continued capital inflow via spot ETFs. Invesco has even submitted a filing for a Solana ETF launch.
Price Predictions: Some analysts predict Bitcoin could reach $111,000–$112,000 by the end of December 2025, assuming a sustained move above key resistance levels.
